Profit recovery team brought in at Alumasc
A RECOVERY plan is being implemented at building and engineering products group Alumasc following the posting of results showing a sharp decline in profits.
The problem lies in its engineering product area where an operating profit loss of £800,000 for the year ending June 30 reflected a “number of operational issues” at Alumasc Precision Components which led to lower gross margins in that business during the year, the firm said.
A new management team and divisional board has been appointed, chaired by Keith Walden who joins the Alumasc Group plc board as a non-executive director.
Alumasc, which has large operations in Shropshire and Staffordshire, reported a mixed bag of results generally with revenue up but profit down for the year.
The firm recorded revenue of £110.6m compared to £106.8m the previous year but the underlying profit before tax was £1.6m compared to £4.3m for the year ending June 2011.
Alumasc said building products revenues were up 5% to £74.9m with operating profit up 12% to £4.4m, despite a decline in UK construction activity, reflecting growth in export, roofing and walling, and construction product sales.
But the firm’s net debt was up at £13.2m at June 30 (2011: £10.7m).
More positively, the group order books grew to a record £53m at June 30, helping to underpin improved prospects for the current year.
Chairman John McCall said: On balance, the board anticipates a much improved performance following the disappointment of the past 12 months.”
