Alumasc (ALU) is a "transformed" business according to the group's chief executive Paul Hooper. The company completed the £4m sale of its last remaining engineering business - Dyson Diecastings - in June, leaving it completely free to focus on its more niche premium building products, systems and solutions businesses. So far, it seems to be serving the group well, with the order book at record levels of around £30m post period-end (from £24m in June 2015).
On that note, it's important to remember that Alumasc is growing the number of international contracts it signs. Although the company has grown ahead of the UK construction market by around 2 percentage points over the past five years, expanding its work outside of these shores gives the company a degree of diversification, which should help to protect profits in the event of a domestic downturn. Levolux, the group's solar shading and screening business, has been particularly prolific selling its wares across North America and growing its order book by a fifth during the period to £18.9m.
House broker Peel Hunt expects pre-tax profits of £9m for the year ending June 2017, giving EPS of 20.2p, compared to £8.3m and 18.7p in FY2016.
| ALUMASC (ALU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 173p | MARKET VALUE: | £61m | |
| TOUCH: | 170-175p | 12-MONTH HIGH: | 220p | LOW: 117p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 47p* | NET CASH: | £8.6m | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 111 | 0.4 | 1.2 | 2.0 |
| 2013 | 117 | 2.8 | 5.3 | 4.5 |
| 2014 | 88.9 | 6.1 | 13.4 | 5.0 |
| 2015 (restated) | 90.3 | 6.3 | 13.5 | 6.0 |
| 2016 | 92.2 | 6.8 | 14.5 | 6.5 |
| % change | +2 | +7 | +7 | +8 |
Ex-div: 6 Oct Payment: 1 Nov *Includes intangible assets of £19.1m or 54p a share | ||||
