Strong demand for new housing lifts growth at Alumasc

Timloc, which makes cavity trays, access panels, loft hatches and ventilation ​products, ​has seen strong growth as housebuilders ​ramp up production amid strong demand for new housing.

Alumasc said pre-tax profits rose 12 per cent to £3.2m in the six months to December 31 despite a four per cent fall in revenue to £43.5m.

The fall was due to two exceptionally large contracts which were completed last year. Taking these two contracts out, revenue rose four per cent against a flat UK construction market.

​The group’s chief executive Paul Hooper said: “The order book was up 42 per cent, which was quite strong. A lot of growth will be in the next financial year.​”

Alumasc’s performance follows the decision to focus group strategy on developing building products businesses. It will pay an interim dividend of 2.7p per share, up from 2.5p a year earlier.

Analyst David Buxton at FinnCap said:​ “​Interim results were satisfactory, pointing to being on track to achieve full-year expectations.

​“​The strong increase in order book, coupled with comments about the growth in UK premium building products and the company’s developing overseas presence gives us confidence. We maintain our ‘Buy’ rating.​”