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Alumasc builds momentum

The supplier of building materials cashed in on strong demand for niche energy and water management systems.
September 4, 2015

Alumasc (ALU) delivered its best performance since the recession as product innovation, new staff and further forays into the buoyant London and south-east construction markets drove underlying operating profit up 16 per cent to £9m. Investors cheered the news, sending shares in the building product supplier up 7 per cent on results day.

IC TIP: Buy at 171p

New products and systems accounted for a fifth of full-year sales. Management's recruitment of "high calibre" staff also played a key role in driving growth. That was especially true for the group's roofing and walling segment: new talent helped it break into higher-growth markets and spurred a 22 per cent rise in divisional revenue.

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