16th Dec 2005 11:32
Alumasc Group PLC16 December 2005 THE ALUMASC GROUP PLC Trading Update In its statement dated 7 November 2005 with regard to the closure of CopalCasting, the Board of Alumasc, the high specification building and engineeringproducts company, commented that it anticipated lower profits from itsengineering business in the first half (to 31 December 2005) of the current yearthan in the equivalent period of the prior year. While the marketplace for engineering businesses in the UK remains challenging,it is encouraging to report that the introduction of new work at AlumascPrecision, the principal engineering division, to replace work lost on thedemise of Rover, is proceeding at an exceptionally fast pace. However, in theshort term, such a high turnover in activity is accompanied by high costsassociated with new projects prior to their reaching planned volume andproductivity levels. While this is encouraging news for the future, short-termprofit has suffered as a result. The group's building products activities, which contributed 64% to the previousyear's profits, are continuing to grow. In addition to the major contract tosupply roofing materials for Alcoa's new aluminium smelter in Iceland, a numberof other contracts have been secured which give confidence for the second halfyear. As a consequence of the above, the Board expects group profits for the firsthalf - and hence for the year as a whole - to fall below market expectationsbased upon estimates made earlier in the year. Prospects for the more importantsecond half, however, remain positive. In these circumstances, and given thestrength of the balance sheet, the Board would expect dividends to be held atthe level of the previous year. It remains the Board's intention to growdividend payments in line with the growth in future earnings. Enquiries: The Alumasc Group plc 01536-383 844John McCall (Chairman)Paul Hooper (Chief Executive) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Alumasc Group