For the first time in its seven-decade history, Alumasc (ALU) was focused purely on building products during the most recent financial year to June. Anyone cognisant of the UK construction market’s current rate of growth – 1.2 per cent a year – might question that strategic shift . On balance, though, these half-year results served as another reminder of the Kettering-based group’s ability to identify products and specialities that can be converted into earnings growth.
All divisions posted top-line improvements, although momentum was most apparent at the solar shading and architectural segment. Revenue leapt 41 per cent here to £24.4m, buoyed by a doubling in export sales to North America, which in turn doubled underlying operating profit to £2m. Further growth in greenback-denominated income explains management’s continued investment in its US sales, and their confidence in a further expansion in the operating margin, which edged up 270 basis points to 8.2 per cent in the period under review. Elsewhere, another good outing for the housebuilding and ancillary business – home to cavity specialist Timloc – explains why chief executive Paul Hooper is happy to spend £2m on a new factory in Goole, south of York.
Analysts at finnCap expect adjusted pre-tax profit of £9.5m and EPS of 21.2p in the 12 months to June 2018, rising to £10.7m and 23.7p in FY2019.
| ALUMASC (ALU) | ||||
| ORD PRICE: | 179p | MARKET VALUE: | £63m | |
| TOUCH: | 176-181p | 12-MONTH HIGH: | 203p | LOW: 138p |
| DIVIDEND YIELD: | 4% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 58p* | NET CASH: | £6.1m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 117 | 2.8 | 5.3 | 4.5 |
| 2014 | 88.9 | 6.1 | 13.4 | 5.0 |
| 2015 | 90.3 | 6.3 | 13.5 | 6.0 |
| 2016 | 92.2 | 6.8 | 14.5 | 6.5 |
| 2017 | 105 | 8.1 | 18.3 | 7.2 |
| % change | +14 | +20 | +26 | +10 |
| Ex-div: | 5 Oct | |||
| Payment: | 31 Oct | |||
| *Includes intangible assets of £18.9m, or 53p a share | ||||
