Premium building products manufacturer Alumasc (ALU) moved into the second half of its financial year with order books close to record levels and the majority of booked work due for completion by the end of June. Underlying operating profits of £4.1m were up modestly on the first half of 2015, largely due to the extra costs loaded on imported materials following sterling's post-referendum decline. The group operating margin contracted 130 basis points to 8.2 per cent, but the supplier of green roofs and solar shades is well positioned to gain momentum through the second half, with margins expected to expand as selling prices increase and operational gearing are brought to bear.
There was good news on the export front, with sales nearly doubling to £7.5m on the back of strengthening demand in North America for bespoke shading and architectural products from the Levolux shading brand, together with increased sales of heavy-duty access covers and surface water drainage systems by the Gatic business. The growing take-up of Levolux products meant the solar shading and screening segment produced the standout performance, delivering 46 per cent revenue growth, helping deliver earnings growth for the fifth successive half-year report.