LONDON (Alliance News) - Building products firm Alumasc Group PLC on Tuesday said its profit decreased in the first half of 2018, hurt by bad weather and Brexit uncertainties.
Pretax profit declined to GBP5.4 million in the year to the end of June compared to GBP8.1 million reported a year earlier, as revenue fell to GBP98.4 million from GBP104.8 million.
Alumasc said trading during the year was more challenging than expected due to external circumstances beyond its control. The company noted that its performance was affected by bad weather and project delays, caused by a cautious approach from building contractor in an uncertain economic and political background.
As a result, the UK sales were flat year-on-year, but international sales were 27% lower.
The Architectural Screening, Solar Shading & Balconies unit generated a revenue of GBP22.0 million, down from GBP24.4 million a year ago, as the company sold its contract in the North American power station screening project.
The Roofing & Walling division revenue slipped to GBP31.2 million from GBP34.0 million the year before, with weaker than expected demand in the UK new build construction market.
The Water Management unit revenue grew, however, to GBP34.5 million from GBP32.6 million year-on-year, boosted by the acquisition of Wade International In January for GBP8.0 million.
The Housebuilding & Ancillary Products segment reported revenue of GBP10.5 million, up from GBP9.6 million a year earlier, following its relocation from two capacity constrained sites to a new single, purpose built facility in East Yorkshire.
The company increased its full-year payout by 2.8% to 7.35 pence from 7.15p paid the year prior.
"Alumasc remains well positioned to outperform the UK construction market given its robust business model, strong market positions and focus on key strategic growth drivers," said Chief Executive Paul Hooper.
Shares in Alumasc were trading 11% higher on Tuesday at 138.75 pence each.
Alumasc Group (ALU)