TIDMALU
RNS Number : 7066N
Alumasc Group PLC
02 February 2016
IMMEDIATE RELEASE 2 February 2016
THE ALUMASC GROUP PLC - INTERIM RESULTS ANNOUNCEMENT
Alumasc (ALU.L), the premium building and engineering products
group, announces interim results for the six months ended 31
December 2015.
Half year financial highlights
Half year to 31 December 2015 2014 % change
------------------------------------- ---- ----- --------
Continuing operations:
Order book at 31 December
(GBPm) 27.4 19.2 +42%
Revenue (GBPm) 43.5 45.2 -4%
Underlying profit before tax
(GBPm)* 4.0 3.7 +8%
Underlying earnings per share
(pence)* 8.9 8.1 +10%
Profit before tax (GBPm) 3.2 2.9 +12%
Total group (including discontinued
operations):
Basic earnings per share (pence) 7.6 6.6 +15%
Dividends per share (pence) 2.7 2.5 +8%
Net cash/(debt) at 31 December
(GBPm) 0.5 (7.7)
------------------------------------- ---- ----- --------
(*) Underlying profits and earnings per share from continuing
operations are stated prior to the deduction of brand amortisation
charges of GBP0.1 million (2014: GBP0.1 million) and IAS19 pension
costs of GBP0.7 million (2014: GBP0.7 million).
Key points
-- Alumasc's strategy is to focus on premium Building Products
& Solutions and the Board believes there are numerous exciting
organic and synergistic growth opportunities to capitalise on
Alumasc's market leading positions in niche segments.
-- In line with this strategic goal and further to last year's
disposal of loss-making APC, the Board has initiated a process for
the disposal of Dyson Diecastings, the group's last remaining
Engineering Products business.
-- Excluding two exceptionally large projects (Kitimat and
Chiswick Park) completed last year, Building Products achieved 4%
growth in underlying revenues with operating margins up to 10.8%,
enabling divisional operating profit to rise 3% to GBP4.7m.
-- Building Products order books rose to GBP27.4m at 31 December
2015 (30 June 2015: GBP24.0m; 31 December 2014: GBP19.2m). Most of
the increase relates to Levolux and will benefit the group's
2016/17 financial year and beyond.
-- Solar Shading & Screening saw Levolux establish a
sustainable and growing business in North America and its UK
business is being expanded to supply bespoke balconies to
prestigious housing and commercial developments. Levolux's order
book increased 28% to GBP19.9m. Financial performance as expected
with operating profit up 20% to GBP462k on sales down 7% to
GBP7.6m.
-- Roofing & Walling revenue down 12% to GBP18.4m, in part
reflecting last year's Kitimat project. Performance earlier in the
financial year was impacted by delays to refurbishment projects
caused by short-term factors in the wider contractual chain. The
reduction in Green Deal funding is being offset by developing new
build business including the Alumasc Ventilated System. Operating
profit down 32% to GBP1.8m.
-- Water Management operating profit up 64% to GBP1.9m on
revenue up 8% to GBP14m with financial performance benefiting from
the holistic approach to sales and customer service following the
introduction of AWMS last July. Particularly strong performances
came from Alumasc Rainwater and Gatic Slotdrain in domestic
markets; new products (including Gatic Filcoten and Harmer SML
Below Ground); and Gatic access covers, including some recovery of
demand in South-East Asia. Relocation to new site in Kettering
delayed 6 to 12 months.
-- Housebuilding & Ancillary Products operating profit up
33% to GBP573k on revenue up 9% to GBP4.1m. Timloc delivered
another record first half performance and, in order to facilitate
future growth, will relocate to new leased premises in the Goole
area over the next 12 to 18 months.
Paul Hooper, Chief Executive, commented:
"Alumasc is pleased to announce earnings growth for the fourth
consecutive first half year.
With the group expected to benefit from its normal seasonal
trading bias in favour of the second half of the financial year,
the Board's previous expectations for the group's full year
performance remain unchanged.
Against a background of further UK growth in demand for premium
building products for sustainable building, and with growing order
books and continuing success in developing our overseas presence,
Alumasc is well positioned to make further progress beyond this
financial year."
Enquiries:
The Alumasc Group plc 01536 383844
Paul Hooper (Chief Executive)
Andrew Magson (Finance Director)
Glenmill Partners Limited 07771 758517
Simon Bloomfield
REVIEW OF INTERIM RESULTS
Overview and highlights
Alumasc is pleased to announce earnings growth for the fourth
consecutive first half year:
-- Underlying earnings per share from continuing operations
advanced by 10% to 8.9 pence per share (2014: 8.1 pence) and basic
earnings per share grew by 15% to 7.6 pence (2014: 6.6 pence).
-- These improved results were driven by continued profitable
growth in Alumasc's water management and housebuilding products
businesses, lower financing charges and the successful disposal of
the loss making Alumasc Precision Components business in June
2015.
-- Cash remains well controlled and the group continues to be
free of any net indebtedness. Net cash at 31 December 2015 was
GBP0.5 million (30 June 2015: net cash of GBP0.9 million; 31
December 2014 net debt of GBP7.7 million).
-- Building products order books rose to GBP27.4 million at 31
December 2015 (30 June 2015: GBP24.0 million; 31 December 2014:
GBP19.2 million). Most of the increase relates to Levolux and will
benefit the group's 2016/17 financial year and beyond.
-- In view of all the above, the Board has decided to increase
the interim dividend by 8% to 2.7 pence per share (2014: 2.5
pence).
Strategic development
The group's strategy for future growth is to position Alumasc as
a focused supplier of premium building products and solutions,
particularly those which add value in conserving and managing the
scarce resources of energy and water in the built environment. The
Board believes there are numerous exciting organic and synergistic
growth opportunities which have been identified to capitalise on
Alumasc's market leading positions in niche segments.
In line with this strategic goal, and further to the successful
disposal of Alumasc Precision Components last summer, the Board has
initiated a sale process for the group's last remaining Engineering
Products business, Dyson Diecastings ("Dyson"). Accordingly, Dyson
has been treated as a discontinued operation in this interim
statement.
Operating Review
(a) Continuing operations - Building products
UK demand for Alumasc's building products continues to grow.
While headline divisional revenues were 4% lower than in the first
half of the prior year at GBP43.5 million, order books grew from
GBP24.0 million to GBP27.4 million in the period under review. We
also continue to develop export markets. Reported revenues for the
half year reflect the non-repeat of the two exceptionally large
projects, Kitimat and Chiswick Park building 7 ("CP7"), that
benefited the first half of the previous financial year, and delays
to a number of projects in our roofing and walling business. When
Kitimat and CP7 are excluded from prior period comparators, our
remaining building products revenues were ahead on a like-for-like
basis by around 4%.
Divisional operating margins improved to 10.8% compared to 10.1%
in the first half of the last financial year, reflecting a
combination of the resolution of the operational and capacity
issues described in this report a year ago and the benefit of
operational gearing following further growth in our water
management and housebuilding products businesses. This enabled
divisional operating profits to grow by 3% to GBP4.7 million.
Solar shading and screening
Levolux's principal achievements in the first half of the
financial year were the delivery of a substantial increase in its
order book, further establishing a sustainable and growing business
in North America and developing an exciting business to supply
bespoke balconies to prestigious housing and commercial
developments. The order book grew from GBP15.6 million at 30 June
2015 to GBP19.9 million at 31 December 2015, and order intake over
the last 12 months of GBP23.0 million has been higher than that
ever previously achieved by the business and significantly higher
than revenues over the last twelve months of GBP15.4 million. Some
GBP11.4 million of the order book is expected to convert into
revenue in the 2016/17 financial year and beyond, including the
GBP3 million project announced in October to screen a power plant
on the eastern seaboard of the USA, Levolux's largest order so far
in North America. The developing balconies business is
complementary to the existing solar shading and control business,
building on Levolux's strengths of design, project management and
delivery whilst leveraging existing sales channels and supply
chains.
In the absence of work on any large projects in the period under
review, Levolux's trading performance in the first half of this
financial year was satisfactory, delivering slightly higher profits
from slightly lower revenues when compared to the same period a
year ago, reflecting good project execution and a higher number of
project completions in the period under review.
Roofing & walling
(MORE TO FOLLOW) Dow Jones Newswires
February 02, 2016 02:00 ET (07:00 GMT)
These businesses again performed strongly by historical
standards. However, as expected, it was not possible to improve on
last year's record results in the absence of a replacement for the
large Kitimat smelter refurbishment contract in Canada. Performance
in the earlier part of the financial year was affected by delays to
a number of refurbishment projects caused by short-term factors in
the wider contractual chain beyond Alumasc's control. Alumasc
Facades is also being impacted by lower housing refurbishment work
in England and Wales as Green Deal funding comes to an end and
therefore continues to develop its new build business.
Specification banks for the recently launched Alumasc Ventilated
System are promising and continue to grow.
Water Management
Alumasc's water management businesses grew both revenues and
profits strongly, including benefiting from the more holistic
approach to sales and customer service following the introduction
of the Alumasc Water Management Solutions ("AWMS") umbrella brand
last July. In particular, there were strong performances from
Alumasc Rainwater and a much better first half than last year in
domestic markets for Gatic Slotdrain. New products introduced
during the period, including Gatic Filcoten and Harmer SML Below
Ground, performed well and these should continue to gain traction.
In addition, Gatic's access covers business performed well,
including some recovery of demand in South-East Asia.
Plans to relocate Alumasc's rainwater & drainage businesses
to a new site in the Kettering area have been delayed by 6 to 12
months due to issues with the initially preferred relocation site.
A number of alternative options are being evaluated.
Housebuilding & ancillary products
Timloc delivered another record first half performance,
benefiting from growing demand, an expanding product range and
operational efficiencies. Further new products that will enable us
to leverage existing sales channels are being planned for launch
later in the year. As part of previously announced plans to
facilitate future growth, Timloc will relocate to new leased
premises in the Goole area over the next 12 to 18 months.
(b) Discontinued operation - Dyson Diecastings
This was a difficult period for UK based die-casters supplying
international OEMs in automotive and off highway diesel markets,
characterised by slowing growth rates in developing markets,
impacting the construction and mining equipment sub-sectors in
particular and resulting in significant customer de-stocking.
Against this background, Dyson, with its diversified customer base
and focus on precision engineered, smaller die-cast and machined
parts for niche applications, performed relatively well, with half
year revenues down by 11% to GBP3.5 million and operating profits
lower by GBP0.1 million at GBP0.2 million. The recently
strengthened management team continues to develop opportunities for
new work, whilst improving operational efficiencies.
In view of the success of Alumasc's strategy to increase its
focus on building products activities over recent years and the
successful sale last year of Alumasc Precision Components, Dyson's
sister business, the Board believes that Dyson's future would be
better served under different ownership. Accordingly, this business
is now being actively marketed for sale.
Cash flow, pensions and balance sheet
Cash management in Alumasc continues to be a key area of focus,
and the group ended 2015 with net cash resources of GBP0.5 million
(30 June 2014: net cash of GBP0.9 million; 31 December 2014: net
debt of GBP7.7 million). There was a modest net cash outflow of
GBP0.5 million in the six months to 31 December 2015 reflecting
some investment in working capital to support anticipated growth
and the purchase of GBP0.4 million of Alumasc shares by the group's
employee share trust. Capital expenditure of GBP0.8 million in the
period related mainly to routine replacement of assets and the
completion of work on new business systems at Levolux and Timloc,
both of which were successfully introduced in the period. The lower
average level of net debt experienced in the half year under review
resulted in a reduction in the group's interest costs on borrowings
to GBP0.1 million from GBP0.3 million in the first six months of
the prior financial year. Given the delay to the investment in the
new Kettering property described above, the group is now unlikely
to incur any significant net indebtedness for another 12
months.
The group's pension deficit measured for accounting purposes
under IAS19 was GBP19.5 million at 31 December 2015, an improvement
on the 30 June 2015 position of GBP20.9 million mainly due to lower
long term inflation expectations. The deficit remains high by
historical standards due to continued low discount rates that are
used to discount future pension payments into present values. The
company's current obligations to make deficit funding contributions
to its legacy defined benefit pension schemes will be re-assessed
following the forthcoming triennial valuation due in March
2016.
There have been no significant changes to the group's balance
sheet in the period under review. Shareholders' funds increased
over the six months to 31 December 2015 to GBP17.3 million from
GBP15.9 million at 30 June 2015, mainly reflecting retained post
tax profits.
Outlook
With the group expected to benefit from its normal seasonal
trading bias in favour of the second half of the financial year,
the Board's previous expectations for the group's full year
performance remain unchanged.
More broadly, against a background of further UK growth in
demand for premium building products for sustainable building, and
with growing order books and continuing success in developing our
overseas presence, Alumasc is well positioned to make further
progress beyond this financial year.
Paul Hooper, Chief Executive
2 February 2016
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
for the half year to 31 December 2015
Half year Half year Year
to 31 to 31 December to 30
December 2014 June
2015 2015
(Unaudited) (Unaudited) (Audited)
Continuing operations: Notes GBP'000 GBP'000 GBP'000
Revenue 4 43,468 45,179 90,295
Cost of sales (28,904) (31,104) (60,741)
----------- --------------- ---------
Gross profit 14,564 14,075 29,554
Net operating expenses (10,849) (10,508) (21,963)
Operating profit 4 3,715 3,567 7,591
Finance income 6 - 2 5
Finance expenses 6 (473) (664) (1,308)
----------- --------------- ---------
Profit before taxation 3,242 2,905 6,288
Tax expense 8 (663) (744) (1,483)
----------- --------------- ---------
Profit for the period 2,579 2,161 4,805
Discontinued operations:
Profit/(loss) after taxation
for the period from discontinued
operations 5 132 206 (429)
Profit for the period 2,711 2,367 4,376
=========== =============== =========
Other comprehensive income
Items that will not be recycled
to profit or loss:
Actuarial gain/(loss) on defined
benefit pensions 2 542 (4,334) (4,726)
Tax on actuarial (gain)/loss
on defined benefit pensions (517) 815 945
25 (3,519) (3,781)
----------- --------------- ---------
Items that are or may be recycled
subsequently to profit or
loss:
Effective portion of changes
in fair value of cash flow
hedges 170 34 (179)
Exchange differences on retranslation
of foreign operations (4) 20 17
Tax on cash flow hedge (35) (5) 43
131 49 (119)
----------- --------------- ---------
Other comprehensive profit/(loss)
for the period, net of tax 156 (3,470) (3,900)
----------- --------------- ---------
Total comprehensive profit/(loss)
for the period, net of tax 2,867 (1,103) 476
=========== =============== =========
Earnings per share Pence Pence Pence
Basic earnings per share
- Continuing operations 7.2 6.0 13.5
- Discontinued operations 0.4 0.6 (1.2)
11 7.6 6.6 12.3
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February 02, 2016 02:00 ET (07:00 GMT)
=========== =============== =========
Diluted earnings per share
- Continuing operations 7.0 5.9 13.3
- Discontinued operations 0.4 0.6 (1.2)
11 7.4 6.5 12.1
=========== =============== =========
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
at 31 December 2015
31 December 31 December 30 June
2015 2014 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and
equipment 5,310 7,457 7,473
Goodwill 16,488 16,488 16,488
Other intangible assets 2,802 2,818 2,831
Financial asset investments 17 17 17
Deferred tax assets 3,509 4,285 4,187
-------------- ------------- -----------
28,126 31,065 30,996
Current assets
Inventories 9,639 10,259 10,592
Biological assets 47 144 75
Trade and other receivables 14,915 18,468 20,317
Cash and cash equivalents 5,404 3,205 5,914
Derivative financial
assets - 29 -
Assets classified as
held for sale 3,978 9,799 -
-------------- ------------- -----------
33,983 41,904 36,898
Total assets 62,109 72,969 67,894
-------------- ------------- -----------
Liabilities
Non-current liabilities
Interest bearing loans
and borrowings (4,893) (10,918) -
Employee benefits payable (19,492) (21,418) (20,935)
Provisions (1,129) (954) (1,224)
Deferred tax liabilities (415) (1,267) (390)
-------------- ------------- -----------
(25,929) (34,557) (22,549)
Current liabilities
Interest bearing loans
and borrowings - - (5,000)
Trade and other payables (16,832) (18,966) (23,338)
Provisions (396) (681) (402)
Corporation tax payable (574) (417) (429)
Derivative financial
liabilities (77) (34) (247)
Liabilities classified
as held for sale (1,018) (3,346) -
-------------- ------------- -----------
(18,897) (23,444) (29,416)
Total liabilities (44,826) (58,001) (51,965)
-------------- ------------- -----------
Net assets 17,283 14,968 15,929
============== ============= ===========
Equity
Called up share capital 4,517 4,517 4,517
Share premium 445 445 445
Capital reserve - own
shares (968) (618) (618)
Hedging reserve (63) (33) (198)
Foreign currency reserve 45 52 49
Profit and loss account
reserve 13,307 10,605 11,734
Total equity 17,283 14,968 15,929
============== ============= ===========
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the half year to 31 December 2015
Half year Half year Year
to to to
31 December 31 December 30 June
2015 2014 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Operating activities
Operating profit 3,715 3,567 7,591
Adjustments for:
Depreciation 431 433 905
Amortisation 194 184 332
Gain on disposal of property,
plant and equipment (3) (4) (14)
Decrease/(increase) in inventories 129 (880) (1,216)
Decrease in biological assets 28 27 96
Decrease/(increase) in receivables 3,936 (597) (1,963)
(Decrease)/increase in trade
and other payables (4,944) (809) 2,510
Movement in provisions (101) 367 358
Cash contributions to retirement
benefit schemes (1,250) (1,250) (2,500)
Share based payments 123 27 300
------------- ------------- -----------
Cash generated from
continuing operations 2,258 1,065 6,399
Operating profit/(loss)
from discontinued operations 167 (724) (896)
Depreciation and amortisation 70 506 1,050
Movement in working capital
from discontinued operations 26 180 526
Cash generated/(absorbed)
from/(by) discontinued operations 263 (38) 680
Tax paid (401) (456) (907)
Net cash inflow from operating
activities 2,120 571 6,172
------------- ------------- -----------
Investing activities
Purchase of property, plant
and equipment (617) (587) (1,114)
Payments to acquire intangible
fixed assets (160) (232) (322)
Proceeds from sales of property,
plant and equipment 18 4 60
Proceeds from sale of business
activity - 1,408 6,168
Interest received - 2 5
Net cash (outflow)/ inflow
from investing activities (759) 595 4,797
------------- ------------- -----------
Financing activities
Interest paid (112) (207) (408)
Equity dividends paid (1,248) (998) (1,889)
Draw down of amounts borrowed 5,000 1,000 -
Repayment of amounts borrowed (5,000) - (5,000)
Refinancing costs (119) - -
Purchase of own shares (388) - -
Net cash outflow from financing
activities (1,867) (205) (7,297)
------------- ------------- -----------
Net (decrease)/increase
in cash and cash equivalents (506) 961 3,672
============= ============= ===========
Net cash and cash equivalents
brought forward 5,914 2,224 2,224
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Effect of foreign exchange
rate changes (4) 20 18
Net cash and cash equivalents
carried forward 5,404 3,205 5,914
============= ============= ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year to 31 December 2015
Capital Hedging Foreign Profit
reserve currency and loss
Share Share - account
capital premium own shares reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2015 4,517 445 (618) (198) 49 11,734 15,929
Profit for the period - - - - - 2,711 2,711
Exchange differences on
retranslation of foreign
operations - - - - (4) - (4)
Net gain on cash flow hedges - - - 170 - - 170
Tax on derivative financial
liability - - - (35) - - (35)
Actuarial gain on defined
benefit pension schemes,
net of tax - - - - - 25 25
Dividends - - - - - (1,248) (1,248)
Share based payments - - - - - 123 123
Acquisition of own shares - - (350) - - - (350)
Exercise of share based
incentives - - - - - (38) (38)
At 31 December 2015 4,517 445 (968) (63) 45 13,307 17,283
======= ======= ========== ======== ========== ========== =========
Capital Hedging Foreign Profit
reserve currency and loss
Share Share - account
capital premium own shares reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2014 4,517 445 (618) (62) 32 12,728 17,042
Profit for the period - - - - - 2,367 2,367
Exchange differences on
retranslation of foreign
operations - - - - 20 - 20
Net gain on cash flow hedges - - - 34 - - 34
Tax on derivative financial
liability - - - (5) - - (5)
Actuarial loss on defined
benefit pension schemes,
net of tax - - - - - (3,519) (3,519)
Dividends - - - - - (998) (998)
Share based payments - - - - - 27 27
At 31 December 2014 4,517 445 (618) (33) 52 10,605 14,968
======= ======= ========== ======== ========== ========== =========
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
for the half year to 31 December 2015
1. Basis of preparation
The condensed consolidated interim financial statements of The
Alumasc Group plc and its subsidiaries have been prepared on the
basis of International Financial Reporting Standards (IFRS), as
adopted by the European Union, that are effective at 31 December
2015.
The condensed consolidated interim financial statements have
been prepared using the accounting policies set out in the
statutory accounts for the financial year to 30 June 2015 and in
accordance with IAS34 "Interim Financial Reporting".
The consolidated financial statements of the group as at and for
the year ended 30 June 2015 are available on request from the
company's registered office at Burton Latimer, Kettering,
Northants, NN15 5JP or at the website www.alumasc.co.uk.
The comparative figures for the financial year ended 30 June
2015 are not the company's statutory accounts for that financial
year but have been extracted from those accounts. Those accounts
have been reported on by the company's auditors and delivered to
the registrar of companies. The report of the auditors was (i)
unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The comparative figures for the financial year ended 30 June
2015 and the six month period ended 31 December 2014 have been
re-classified to show Dyson Diecastings as a discontinued
operation.
The condensed consolidated interim financial statements for the
half year ended 31 December 2015 are not statutory accounts and
have been neither audited nor reviewed by the group's auditors.
They do not contain all of the information required for full
financial statements, and should be read in conjunction with the
consolidated financial statements of the group as at and for the
year ended 30 June 2015.
These condensed consolidated interim financial statements were
approved by the Board of Directors on
2 February 2016.
On the basis of the group's financing facilities and current
financial plans and sensitivity analyses, the Board is satisfied
that the group has adequate resources to continue in operational
existence for twelve months from the date of signing this report
and accordingly continues to adopt the going concern basis in
preparing these condensed consolidated interim financial
statements.
2. Estimates
The preparation of condensed consolidated interim financial
statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amount of assets and liabilities, income and expense.
Actual results may differ from these estimates.
Except as described below, in preparing these condensed
consolidated interim financial statements, the significant
judgements made by management in applying the group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
as at and for the year ended 30 June 2015.
During the six months ended 31 December 2015, management
reassessed and updated its estimates in respect of retirement
benefit obligations based on market data available at 31 December
2015. The resulting impact was a GBP0.5 million pre-tax actuarial
gain, calculated using IAS19 conventions, recognised in the six
month period to 31 December 2015.
3. Risks and Uncertainties
A summary of the group's principal risks and uncertainties was
provided on pages 16 and 17 of Alumasc's Report and Accounts 2015.
The Board considers these risks and uncertainties remain relevant
to the current financial year.
Alumasc can experience changes to the timing of construction
projects, including those installed by third parties, that are
beyond the group's control. Such changes could impact the timing of
revenue and profit recognition in the second half year.
Alumasc is in discussions with a number of parties to sell the
Dyson Diecastings business. Current expectations are that the
carrying value of the business of GBP3.0 million will be recovered
on sale. However, depending on the final outcome agreed, sales
proceeds could differ from the book value at 31 December 2015.
4. Segmental analysis - continuing operations
Since Alumasc's Report and Accounts 2015, the operating segments
of The Alumasc Group have been re-aligned to reflect changes to
internal management responsibilities. Dyson Diecastings, as a
discontinued operation, has also now been excluded from this
disclosure. The segmental analysis of comparative data for the
periods ending 31 December 2014 and 30 June 2015 have therefore
been re-presented.
Inter-segment Revenue Segmental
Total Operating
External Result
GBP'000 GBP'000 GBP'000 GBP'000
Half Year to 31 December
2015
Solar Shading & Screening 7,620 - 7,620 462
Roofing & Walling 18,409 2 18,411 1,755
Water Management 13,342 688 14,030 1,907
Housebuilding & Ancillary
Products 4,097 - 4,097 573
--------- -------------- -------- ----------
Sub-total 43,468 690 44,158 4,697
Elimination/Unallocated
costs - (690) (690) (570)
Total 43,468 - 43,468 4,127
(MORE TO FOLLOW) Dow Jones Newswires
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========= ============== ======== ==========
GBP'000
Segmental operating result 4,127
Brand amortisation (134)
IAS 19 pension scheme administration
costs (278)
Total operating profit from
continuing operations 3,715
==========
Inter-segment Revenue Segmental
Total Operating
External Result
GBP'000 GBP'000 GBP'000 GBP'000
Half Year to 31 December
2014 (re-stated)
Solar Shading & Screening 8,159 - 8,159 386
Roofing & Walling 20,870 5 20,875 2,589
Water Management 12,383 584 12,967 1,161
Housebuilding & Ancillary
Products 3,767 - 3,767 432
--------- -------------- -------- ----------
Sub-total 45,179 589 45,768 4,568
Elimination/Unallocated
costs - (589) (589) (597)
Total 45,179 - 45,179 3,971
========= ============== ======== ==========
GBP'000
Segmental operating result 3,971
Brand amortisation (134)
IAS 19 pension scheme administration
costs (270)
Total operating profit from
continuing operations 3,567
==========
Inter-segment Revenue Segmental
Total Operating
External Result
Full Year to 30 June 2015
(re-stated)
Solar Shading & Screening 16,007 - 16,007 929
Roofing & Walling 40,577 8 40,585 4,461
Water Management 25,935 1,109 27,044 3,272
Housebuilding & Ancillary
Products 7,776 - 7,776 1,137
-------- -------------- -------- ----------
Sub-total 90,295 1,117 91,412 9,799
Elimination/Unallocated
costs - (1,117) (1,117) (1,485)
Total 90,295 - 90,295 8,314
======== ============== ======== ==========
GBP'000
Segmental operating result 8,314
Brand amortisation (268)
IAS 19 pension scheme administration
costs (455)
Total operating profit
from continuing operations 7,591
==========
5. Discontinued operations
Alumasc Pendock Total
Precision Profiles
Components Dyson Diecastings
GBP'000 GBP'000 GBP'000 GBP'000
Half Year to 31 December
2015
Revenue - - 3,465 3,465
------------ ---------- ----------------- -------
Operating profit - - 167 167
Tax charge - - (35) (35)
Profit after taxation - - 132 132
============ ========== ================= =======
Alumasc Pendock Total
Precision Profiles
Components Dyson Diecastings
GBP'000 GBP'000 GBP'000 GBP'000
Half Year to 31 December
2014 (re-stated)
Revenue 10,269 785 3,816 14,870
------------ ---------- ----------------- -------
Operating (loss)/profit (1,117) 55 338 (724)
Gain on disposal of discontinued
operation - 770 - 770
Tax credit/(charge) 246 (12) (74) 160
(Loss)/profit after taxation (871) 813 264 206
============ ========== ================= =======
Alumasc Pendock Total
Precision Profiles Dyson
Components Diecastings
GBP'000 GBP'000 GBP'000 GBP'000
Full Year to 30 June
2015 (re-stated)
Revenue 16,672 785 7,787 25,244
------------ ---------- ------------ -------
Operating (loss)/profit (1,659) 55 708 (896)
(Loss)/gain on disposal
of discontinued operations (1,340) 770 - (570)
Tax credit/(charge) 1,205 (12) (156) 1,037
(Loss)/profit after taxation (1,794) 813 552 (429)
============ ========== ============ =======
6. Net finance costs
Half year Half year Year
to to to
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
Finance income - Bank interest - (2) (5)
------------ ------------ --------
Finance costs - Bank loans
and overdrafts 14 24 85
- Revolving credit facility 110 240 512
------------ ------------ --------
124 264 597
- IAS19 net pension
scheme finance costs 349 400 711
473 664 1,308
------------ ------------ --------
7. Reported to underlying profit reconciliation
Half year Half year
to 31 to 31 December Year to
December 2014 30 June
2015 2015
(re-stated) (re-stated)
GBP'000 GBP'000 GBP'000
Reported profit before tax 3,242 2,905 6,288
Add: Brand amortisation 134 134 268
Add: IAS19 pension scheme administration
costs 278 270 455
Add: IAS19 net pension scheme
finance costs 349 400 711
Underlying profit before tax 4,003 3,709 7,722
========== ================ ============
8. Tax expense
Half year Half year Year
to 31 to 31 to 30
December December June
2015 2014 2015
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(re-stated) (re-stated)
GBP'000 GBP'000 GBP'000
Current tax:
UK corporation tax
- continuing operations 545 553 922
- discontinued operations (4) (104) (81)
Overseas tax 4 2 11
Amounts under provided in
previous years - - 39
Total current tax 545 451 891
Deferred
tax:
Origination and reversal of
temporary differences:
* continuing operations 150 189 543
* discontinued operations 39 (56) (956)
Amounts over provided in previous
years - - (56)
Rate change adjustment (36) - 24
Total deferred tax 153 133 (445)
Total tax expense 698 584 446
---------- ------------ ------------
Tax charge on continuing operations 663 744 1,483
Tax charge/(credit) on discontinued
operations 35 (160) (1,037)
Total tax expense 698 584 446
---------- ------------ ------------
Tax recognised in other comprehensive
income:
Deferred tax:
Actuarial gains/(losses) on
pension schemes 517 (815) (945)
Cash flow hedges 35 5 (43)
Tax charged/(credited) to
other comprehensive income 552 (810) (988)
Total tax charge/(credit)
in the statement of comprehensive
income 1,250 (226) (542)
---------- ------------ ------------
9. Dividends
The directors have approved an interim dividend per share of
2.7p (2014: 2.5p) which will be paid on 7 April 2016 to
shareholders on the register at the close of business on 4 March
2016. The cash cost of the dividend is expected to be GBP1.0
million. In accordance with IFRS accounting requirements, as the
dividend was approved after the balance sheet date, it has not been
accrued in the interim consolidated financial statements. A final
dividend per share of 3.5p in respect of the 2014/15 financial year
was paid at a cash cost of GBP1.2 million during the six months to
31 December 2015.
10. Share Based Payments
During the period, the group awarded 180,000 options (2014:
none) under the Executive Share Option Scheme ("ESOS"). These
options have an exercise price of 188p and require certain criteria
to be fulfilled before vesting. 80,000 existing options (2014:
none) were exercised during the period and no ESOS options (2014:
164,000) lapsed during the period.
Total awards granted under the group's Long Term Incentive Plans
("LTIP") amounted to 194,413 (2014: nil). LTIP awards have no
exercise price but are dependent on certain vesting criteria being
met. During the period no existing LTIP awards lapsed (2014:
259,328).
11. Earnings per share
Basic earnings per share is calculated by dividing the net
profit for the period attributable to ordinary equity shareholders
of the parent by the weighted average number of ordinary shares in
issue during the period.
Diluted earnings per share is calculated by dividing the net
profit attributable to ordinary equity shareholders of the parent
by the weighted average number of ordinary shares in issue during
the period, after allowing for the exercise of outstanding share
options. The following sets out the income and share data used in
the basic and diluted earnings per share calculations:
Year
to
30 June
Half
year
to 31
December
2014 2015
Half
year
to 31
December
2015 (re-stated) (re-stated)
GBP'000 GBP'000 GBP'000
Profit attributable to equity
holders of the parent - continuing 2,579 2,161 4,805
Profit/(loss) attributable
to equity holders of the
parent - discontinued 132 206 (429)
Net profit attributable to
equity holders of the parent 2,711 2,367 4,376
---------- ------------- -------------
Half Half
year year Year
to 31 to 31 to
December December 30 June
2015 2014 2015
000s 000s 000s
Basic weighted average number
of shares 35,646 35,648 35,648
Dilutive potential ordinary
shares - employee share options 903 546 567
Diluted weighted average
number of shares 36,549 36,194 36,215
------------ ------------- -------------
Calculation of underlying earnings per share:
Year
to
30 June
Half
year
to 31
December
2014 2015
Half
year
to 31
December
2015 (re-stated) (re-stated)
GBP'000 GBP'000 GBP'000
Reported profit before taxation
from continuing operations 3,242 2,905 6,288
Add: brand amortisation 134 134 268
Add: IAS19 pension scheme
administration costs 278 270 455
Add: IAS19 net pension scheme
finance costs 349 400 711
Underlying profit before
taxation 4,003 3,709 7,722
Tax at underlying group rate
of 21.0%
(2014: 22%; 2014/15: 22%) (841) (816) (1,699)
Underlying earnings 3,162 2,893 6,023
------------ ------------- -------------
Underlying earnings per share 8.9p 8.1p 16.9p
------------ ------------- -------------
12. Related party disclosure
The group has a related party relationship with its directors
and with its UK pension schemes. There has been no material change
in the nature of the related party transactions described in the
Report and Accounts 2015. Related party information is disclosed in
note 31 of that document.
Responsibility Statement
The Directors confirm that, to the best of their knowledge:
a) the condensed consolidated interim financial statements have
been prepared in accordance with IAS34 "Interim Financial
Reporting" as adopted by the EU; and
b) the interim management report includes a fair review of the
information required by:
-- DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
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