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Alumasc feels the chill wind of profit warning

Severe winter weather and nervous builders have been blamed for a warning from specialist building material manufacturer, Alumasc.
March 15, 2018

Severe winter weather is one item on the list of reasons given by management at specialist building materials manufacturer Alumasc (LSE:ALU) for a profit warning that wiped 26 per cent off the share price. More seriously, management also cite continuing delays in builders committing to new work, exacerbated by the insolvency of Carillion, and slowing construction output in the commercial new-build sector.

 

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These factors mean a more pessimistic outlook for the Levolux Solar Shading business, the roofing & walling division, and the Gatic business within the water management division. Pre-tax profit for the year ending 30 June 2018 is likely to be 15 per cent lower than expected and profit before tax 15 per cent behind. Given the sales slowdown, a build-up in inventory at the half-year stage in an attempt by management to ward off inflationary pressures could be another reason for concern.