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Alumasc has been punished for failing to keep a handle on costs at its precision engineering division during a rush of business last year. Capacity constraints, production bottlenecks and cost overruns damaged margins there and sliced into group profits. As a result, broker Peel Hunt has slashed full-year estimates by 47 per cent and expects adjusted pre-tax profit of just £2.5m, giving adjusted EPS of only 5p (compared with £4.3m and 8.3p in 2011). Axing the dividend by over two-thirds won't impress income seekers, either.