Alumasc upgrades FY outlook

Building products group Alumasc said on Thursday that it had ended the financial year ended 30 June "strongly", with demand and margins "holding up well" in the final quarter.

As a result, Alumasc expects full-year revenues to be approximately £90.0m, roughly 18% higher year-on-year, while underlying pre-tax profits were simply said to be "ahead of the board's previous expectations".

After the AIM-listed group's "record first-half performance", underlying momentum was maintained throughout the second half, with growth achieved in all three divisions against a backdrop of "resilient building and construction activity" and market share gains.

Alumasc also stated that raw material and shipping cost increases had been "successfully recovered" through sales price increases.

Net debt was cut from £4.3m on 30 June 2020 to £1.0m at the end of the half.

Alumasc said: "Demand remains strong entering the new financial year, which has started in line with management's expectations. The board is however cognisant of the potential for short-term disruption to our customers' operations from shortages of building materials, labour and road haulage; and delays in the global container shipping industry.

"Notwithstanding these risks, a strong platform is now in place which should provide the board with confidence for another strong year."

As of 0935 BST, Alumasc shares were up 0.73% 276.0p.