Alumasc describes 'robust' first quarter performance

Building products company Alumasc said in an update on Thursday that following its strong performance in the year ended 30 June, and the disposal of Levolux on 26 August, trading in its continuing operations over the first quarter remained “robust”.

The AIM-traded firm said volumes and margins in its continuing operations were strong, and ahead of the corresponding prior-year period.

It said transportation costs and material prices were stabilising, although exchange rates and energy prices remained volatile and had the potential to impact costs further.

“We have three strong divisions with excellent teams aiming to deliver ambitious growth in their markets, all of whom have well-defined strategies for delivering their goals,” said chairman Vijay Thakrar.

“The board is focussed on supporting these divisions to pursue their ambitions.”

The company’s balance sheet position remained “strong”, and the business was well-funded, with a low level of net debt and a pension deficit which had reduced “materially” over the last five years.

Its board said it believed the growing demand from customers for environmental solutions, its portfolio of strong brands and sustainable building materials, together with the agility of its businesses, provided “resilience” against any potential adverse trading conditions caused by rising interest rates and the wider economic uncertainty.

“Despite the gathering storm clouds, we have continued the strong performance that we finished the prior year with,” said chief executive officer Paul Hooper.

“We aim to continue to offset any emerging UK market weakness through self-help, be that further operating efficiencies or taking current and new products into wider markets.

“Examples of these include the recent launch of roof tile vents into a new market for our house building products, early signs of which are encouraging, and expanding our growing export business.”

At 1404 BST, shares in the Alumasc Group were up 7.54% at 150.55p.

Reporting by Josh White for Sharecast.com.