Alumasc Group Regulatory News (ALU)

8 Apr 2005 13:19

Alumasc Group PLC08 April 2005 THE ALUMASC GROUP plc Statement re MG Rover Following recent developments at MG Rover, the Alumasc Board has issued thefollowing statement: • While the future of MG Rover has been uncertain for some time, the decline in terms of vehicle sales has been evident for many months. • As declining volumes made business with Rover increasingly uneconomic, Alumasc has taken necessary steps to protect its own business, including the pursuit of new customers in other sectors. • As a result of the actions taken, Alumasc's exposure to the Rover group is limited to approximately £0.2 million, with a similar potential write off of dedicated tooling, equipment, stocks etc. • In the half year to December 2004, sales to MG Rover and Powertrain amounted to £1.9 million, 3% of the group's sales. Additional sales of £0.6 million (1% of the group's sales) were made to other suppliers to Rover. • Paul Hooper, Chief Executive, commented "While developments at Rover are a matter for regret, Alumasc has been reviewing manufacturing capacity in the light of falling automotive demand and formal consultation has been under way in one of our facilities since February. The aim is to align capacity with the future needs of our customers while enhancing divisional profitability." Note for Editors: Alumasc is a high specification building products and precision engineeringcompany. In the year to June 2004, it made profit before tax of £8.9 million onturnover of £115 million and had no borrowings at the year end. The precisionengineering division accounted for one third of group turnover and operatingprofit. Enquiries: The Alumasc Group plc 01536-383 844John McCall (Chairman)Paul Hooper (Chief Executive) Bankside Consultants LimitedCharles Ponsonby 020-7444 4166 This information is provided by RNS The company news service from the London Stock Exchange