Strong demand for new houses boosts Alumasc

Building products firm Alumasc has reported record annual results and said its Timloc housebuilding products division is on track to move into a new factory in Goole early next year.
By The Newsroom
Published 5th Sep 2017, 16:57 BST
Updated 11th Sep 2017, 12:43 BST
Alumasc's chief executive Paul Hooper said order books remain strongAlumasc's chief executive Paul Hooper said order books remain strong
Alumasc's chief executive Paul Hooper said order books remain strong

Alumasc has plans to move to a new 89,000 sq ft facility in the East Yorkshire town as Timloc expands its UK market coverage amid strong demand for new houses.'‹The firm said '‹group revenues '‹rose'‹ 14'‹ per cent'‹ to £104.8m '‹in the year to June 30, '‹reflect'‹ing'‹ strong export sales growth, together with continued growth in'‹ '‹the UK.Operating margins in '‹the second half'‹ recovered to '‹the previous year'‹'s'‹ levels of 9.2'‹ per cent'‹ after absorbing'‹ '‹over £1m of additional material costs during the year, mainly arising from the depreciation of '‹s'‹terling.'‹The group's Housebuilding & Ancillary Products'‹ division reported a 12 per cent increase in revenue to £9.6m, reflecting Timloc’s success '‹as it branches out into the South East, South West, South Coast and Scotland.'‹The group's chief executive '‹Paul Hooper'‹ said:'‹ '‹“Our order books and the level of specifications and enquiries in the pre-order pipeline remain strong across the'‹ '‹group. '‹"'‹The '‹b'‹oard is conscious of the wider economic and political uncertainties at the current time. Nonetheless, in view of'‹ '‹the strategic positioning of our building products businesses in specialised growth markets and the significant'‹ '‹further opportunities for international development at Levolux and Gatic, '‹we believe Alumasc can continue'‹ '‹to perform well in 2017/18 and beyond.”A'‹nalyst David Buxton at FinnCap said: "F'‹ull year'‹ results were in line with expectations. Some pricing pressure has been seen, but action taken on pricing saw margin increase from 8.2'‹ per cent'‹ in '‹the first half'‹ to 9.2'‹ per cent in the second half."The slight delay in the settlement of the large US Levolux project saw cash about £1.0m lower than expected, but this has now rectified. '‹"'‹Minimal changes to forecasts leave the shares trading on an attractive P/E of 8.0'‹ times'‹ and yield of 4.9'‹ per cent'‹ and our 225p price target highlights our continued '‹''‹Buy'‹''‹ rating.'‹"'‹

Related topics:GooleEast YorkshireSouth EastScotland