Alumasc FY hit by severe weather, Carillion collapse and Brexit uncertainty

In the year to 30 June, underlying pre-tax profit fell to £6.5m from £9m the year before, as revenue declined to £98.4m from £104.8m.

Basic earnings per share fell to 12p from 18.3p and net debt stood at £4.8m versus net cash of £6.1m the year before, reflecting investment in the acquisition of Wade International and the new Timloc factory.

The company said most of the shortfall in its financial performance occurred in the third quarter, when trading momentum was hit by severe weather and a cautious approach from building contractor customers in committing to new work against an uncertain economic and political background, leading to project delays.

This was exacerbated by the collapse of Carillion, which dented confidence further and the availability of credit across much of the UK construction sector. The group also said that as expected it experienced lower export sales, reflecting project timing after last year's record. This should now begin to recover as the project pipeline grows, it added.

Still, Alumasc hailed a better performance in the fourth quarter.

Chief executive Paul Hooper said: "We are delighted to report a strong fourth quarter performance in 2017/18, following the challenges experienced in the third quarter. Alumasc remains well positioned to outperform the UK construction market given its robust business model, strong market positions and focus on key strategic growth drivers."

At 1520 BST, the shares were up 11% to 139p.