Alumasc Gives Strong Performance Update for 2024

ALUMASC is significantly outperforming UK construction markets with revenue growth of 6.5%, according to its latest trading update.

In a trading update for the year ended 30 June 2024, the building products, systems and solutions group says revenue, operating margins and profit are all ahead of FY23. The growth across all three divisions reflects the company’s focus on growth initiatives and disciplined cost management, it adds.

Alumasc expects underlying profit before tax to be at least £12.6m, ahead of forecasts and the prior year (£11.2m).

Strong Performance Update

Overall UK sales saw market share gains in the Building Envelope division, following investments in sales resource and sustainable roofing solutions.

Performance of Housebuilding Products saw new product launches offset the reduction in demand from the sharp decline in new housing starts.

The Water Management division saw strong growth in export sales. This mitigated some UK project delays which impacted the division’s domestic revenues. Export sales growth was achieved despite the delay in call-offs on a significant project at Chek Lap Kok airport in Hong Kong.

The ARP business has performed very well in the six months following its acquisition. Cross-selling opportunities are being taken, as is work on substantial purchasing synergies to benefit the Group from FY25, Alumasc reports.

Over the medium term, the Alumasc board believes it can generate further organic revenue growth and achieve operating margins of 15-20%.

Year end net bank debt (pre-IFRS 16) is expected to be approximately £7m – around 0.5x EBITDA.

Paul Hooper, Chief Executive of Alumasc, said: “Against such a challenging commercial market backdrop, I am delighted with the Group’s strong performance, which is testament to our robust business model and the significant progress we have made in delivering against our strategic aims.

“We are optimistic that our growth strategy, with a focus on environmentally sustainable solutions, new product development, investment in capability and ongoing self-help initiatives will drive further strong growth in returns as market conditions improve.”

Alumasc plc will be publishing its FY24 results on 3 September 2024.

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