Alumasc has confidence in the future after a slow third quarter

Alumasc has announced that it has experienced a slower than expected third quarter performance, both in terms of revenue and order intake.

The company has said that a combination of factors has affected this quarter:

• Continuing delays in building contractor customers committing to new work following recent margin pressures, exacerbated in January by the insolvency of Carillion and the consequential impact on the industry
• Broader economic and political uncertainties impacting demand particularly in the commercial new build sector, with recent reports of construction output in this sector showing decline
• Delays to public housing refurbishment contracts in Scotland
• Severe winter weather over the last few weeks

This being said, areas where Alumasc’s products and systems are sold via building distribution channels continue to perform well. 

The board has forecast that the group revenues for the year ending 30 June 2018 will be 4-5% below previous expectations, with a consequential reduction in previously expected underlying profit before tax of around 15%.

Furthermore, the level of specifications and the value of pre-order pipelines remain strong across the group.

The Board continues to have confidence in the future growth prospects of the group, nonetheless, with hope for:

• The strategic positioning of the business in specialist growth markets
• The consistent investment in recent years in growth resources and additional capacity
• Levolux and Alumasc Water Management’s potential to further develop export markets
• The recent acquisition of Wade, a quality business with development and synergy potential