Alumasc (ALU) , a premium sustainable building products, systems and solutions group, updated markets on trading ahead of its AGM this morning, with Q1 2024 performance meeting Board expectations despite market challenges.
The company reported subdued demand in some construction sectors, which was offset by increased overseas sales and strong demand for new housebuilding products.
Prudent investments are ongoing to boost growth, enhance customer service, and streamline operations while managing costs. The Water Management division's commercial and sales teams have been restructured, a move expected to save approximately £0.8m annually.
Alumasc added that the ARP Group acquisition process is ongoing with an expected conclusion in December 2023.
Overall, Alumasc maintains a strong balance sheet and confidence in its resilience and cost-reduction capabilities, keeping its outlook for the year ending 30 June 2024 unchanged.
Paul Hooper, Chief Executive of Alumasc, commented: "I am pleased with the Group's performance, in challenging trading conditions. Our excellent customer service and leading positions in a diverse range of end markets provide resilience, and we are continuing to progress our strategy, investing in areas where we see growth opportunities while controlling costs prudently where appropriate. With a strong balance sheet and a product portfolio which delivers environmental benefits to our customers, we remain well positioned to benefit from the eventual recovery in our end markets."
View from Vox
Alumasc is a UK-based supplier of sustainable building products and solutions. Its solutions include building drainage, gutters and downpipes, building drainage, and drainage access covers.
The company derives 80% of its revenues from products related to specification and environmental regulations and has a range of long-term growth drivers that will ensure continued demand for its solutions. These include water management - with current legislation aimed at conservation, attenuation and control of water. Other drivers include energy management, specified roofing solutions, and construction efficiency.
Overall, Alumasc’s diverse offering, strong balance sheet and improved commercial positioning underpin a business that is well positioned to benefit from the long-term growth drivers in its markets.
Follow Alumasc for more News and Updates: