Goole operation boosts Alumasc

Building products firm Alumasc reported a record order book as demand for new houses increases

Alumasc said that Timloc is outperforming the rest of the UK house building products sector.

Following Timloc's success, Alumasc has plans to move to a new 80,000 sq ft facility in the East Yorkshire town by the end of next year.

Chief executive Paul Hooper said: "Timloc has trebled its profits since we bought it 10 years ago. It has the highest operating margins in the group.

"It's been so successful, it's getting to capacity now and we will move to bigger premises a mile away next to the M62 outside Goole."

Alumasc said revenue rose 10 per cent to £8.6m in the housebuilding division and operating profit rose 25 per cent to £1.4m, reflecting another record year for Timloc.

The group said it is still too close to the June referendum to predict with confidence any change in prospects for the wider economy.

It said the impact of the fall in sterling is limited at current levels and its businesses have not detected any significant change in demand for products and services.

Analyst Clyde Lewis at Peel Hunt said: "Full year results were slightly better than expected with underlying pre-tax profits up 7 per cent at £8.3m.

"The disposal of the last engineered products business in the second half has meant the group is now wholly focused on niche building products.

"To date no impact from the referendum has been seen and consequently forecasts are unchanged for the full year17/18. Despite the recent strong share price rally we continue to believe the shares look good value ."