Alumasc's full-year profit is "deeply disappointing". Still, it largely reflects well-publicised capacity constraints and cost overruns at its precision components business, and mask a strong performance and record order book at the building products division.
Underlying pre-tax profit slumped almost two-thirds to just £1.6m, sunk by a £1.8m loss at the rogue engineering unit. It had made £1.6m the year before and Alumasc has parachuted in experienced former director Keith Walden to oversee the division's recovery. A small second-half profit already looks likely.
It was better news at lightweight components unit Dyson Diecasting, which delivered double-digit operating margin. That said, it will need to drum up more sales from the likes of Bentley, Siemens and McLaren to offset a likely drop in demand from Caterpillar, easily Alumasc's largest customer. Much will also depend on momentum at the building products division. It now makes up two-thirds of sales and grew operating profit by 12 per cent to £4.4m. A number of big contracts doubled the order book to £29m and, encouragingly, more of that business is coming from oversees - exports grew 46 per cent, largely to North America, France and the Middle East.
Broker Peel Hunt expects adjusted pre-tax profit of £4.55m in 2013, giving adjusted EPS of 9.3p (loss of 1.1p in 2012).
ALUMASC (ALU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 76p | MARKET VALUE: | £27.4m | |
| TOUCH: | 75-77p | 12-MONTH HIGH: | 149.5p | LOW: 53.5p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 63 | |
| NET ASSET VALUE | 52p* | NET DEBT: | 70% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 126 | 10.0 | 20.3 | 10 |
| 2009 | 109 | 1.80 | 2.90 | 10 |
| 2010 | 88 | 3.48 | 6.40 | 10 |
| 2011 | 107 | 5.38 | 10.7 | 10 |
| 2012 | 111 | 0.39 | 1.20 | 2 |
| % change | +4 | -93 | -89 | -80 |
Ex-div: 3 Oct Payment: 31 Oct *Includes intangible assets of £19.9m, or 55p a share | ||||
