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ALU: Half Yearly Report

Alumasc Group

03 Feb 2011 07:00:08

Alumasc Group Plc

RNS Number : 5958A
Alumasc Group PLC
03 February 2011
 



IMMEDIATE RELEASE

Thursday, 3 February 2011

 

THE ALUMASC GROUP PLC - INTERIM RESULTS ANNOUNCEMENT

"…an improving overall performance"

 

Alumasc (ALU.L), the premium building and engineering products group, announces results for the six months to 31 December 2010.

 

Financial Highlights

·    Group revenues up 17% to £52.0m (H1 2009/10: £44.5m).

·    Underlying* PBT up 12% to £2.1m (H1 2009/10: £1.9m).

·    Underlying* EPS up 14% to 4.1p (H1 2009/10: 3.6p).

·    Reported PBT up 13% to £1.8m (H1 2009/10: £1.6m).

·    Basic EPS up 13% to 3.5p (H1 2009/10: 3.1p).

·    Net debt increased, as expected, to £11.9m at 31 December 2010, with gearing of 40%.

·    Interim dividend maintained at 3.25p per share.


Commercial Highlights

·    An improving overall performance, moderated by one of the coldest ever starts to winter in the UK.

·    Alumasc Precision continued to build strongly on recovery from recession, with H1 revenues up almost 80% to £16.4m and profit of £1.3m compared to a small loss for the same period last year.  Momentum is continuing into H2, boosted by a significant new export order won last October for a complex suite of engine transmission components.

·    H1 revenues for Building Products were up 2% to £33.8m. Underlying profits were down 39% to £2.1m, reflecting lower activity levels in the commercial new build market, severe early winter weather and investment in sales and marketing resources to develop export sales to North America, the Middle East and Europe.

·    Levolux, the UK's leading solar shading company, continues to be a major element of the group's growth strategy for sustainable building products and investment in export and new product initiatives.  In the UK, a major project at Chiswick Park in London is expected to benefit H2.

·    Order books at 31 December 2010 were up almost 60% on 31 December 2009 to £42.1m.


*  excluding brand amortisation and restructuring costs

Paul Hooper, Chief Executive, commented:

"Whilst we remain cautious about the short term prospects for the UK construction market, we have increasing confidence that the exciting new product and export market development initiatives in both the Building Products division and at Alumasc Precision, together with the group's strong balance sheet and strategic positioning in sustainable building product niches, will enable Alumasc to leverage the anticipated steady economic recovery beyond the current financial year".

Presentation:

Today, a presentation will be made to institutions, broker's analysts and private client brokers by Paul Hooper (Chief Executive) and Andrew Magson (Finance Director), with John McCall (Chairman) in attendance. The meeting will commence at 9.30am and end at approximately 10.30am. It will be held

at the offices of Peel Hunt, 111 Old Broad Street, London, EC2N 1PH.

 

Enquiries:

 

The Alumasc Group plc

01536 383844

    Paul Hooper (Chief Executive)

info@alumasc.co.uk

    Andrew Magson (Finance Director)




Bankside Consultants Limited

020 7367 8888

    Simon Bloomfield




 

REVIEW OF INTERIM RESULTS

 

Performance Overview

 

Alumasc's interim results reflect an improving overall performance, moderated by one of the coldest ever starts to winter in the UK.

 

The group entered the second half year with order books of £42.1 million, almost 60% ahead of the low point at 31 December 2009, mainly driven by Alumasc Precision, the group's principal engineering products business.

 

Alumasc Precision has continued to benefit from a rapid recovery in global demand following the recession. This was boosted by a significant new export contract win in October for a complex suite of engine transmission components.

 

Whilst recovery in the UK construction market is still awaited and was disrupted by the extreme early winter weather, Alumasc has continued to invest in the development of UK and export markets for its sustainable building products.

 

Overall, first half group revenues advanced by 17% to £52.0 million, driven mainly by improved demand at Alumasc Precision where momentum has continued into the second half of the year. Group operating margins were affected by business mix, with demand for higher margin sustainable building products still relatively low following the recession. These two factors produced a 12% improvement in half year underlying1 group profit before tax to £2.1 million. After charging restructuring and brand amortisation costs, which were similar to the same period last year, reported profit before tax advanced by 13% to £1.8 million.

 

Encouragingly, underlying profit growth was in line with revenue growth prior to the extreme weather.

 

Underlying1 earnings per share were 4.1 pence (2009: 3.6 pence) and basic earnings per share improved to 3.5 pence (2009: 3.1 pence).

 

The Board has decided to declare an unchanged interim dividend of 3.25 pence per share, which will be paid on 8 April to shareholders on the register at the close of business on 11 March 2011.

 

1 Underlying profits and earnings per share are calculated prior to deducting restructuring costs of £0.1 million and brand amortisation charges of £0.2 million in each of the half years to 31 December 2009 and 2010

 

Building Products Division

 

Divisional revenues for the period were £33.8 million; an increase of 2% compared with the first half of last year. Underlying1 operating profit was 39% down at £2.1 million, in the main reflecting lower levels of activity in the commercial new build market, where margins in the first quarter of the prior year had been strong as large projects, funded prior to the credit crunch, completed. In addition, divisional overhead costs were a little higher than one year ago due to investment in sales and marketing resources to develop export sales to North America, the Middle East and Europe. 

 

Levolux, the UK's leading solar shading company, is a major element of the group's growth strategy for sustainable building products activities.  Investment in export and new product development initiatives, described further below, continued during the period and the improvement in the order book seen at the beginning of this financial year, including a major project at Chiswick Park in London, should benefit performance in the second half.  Although work on large external shading projects for new commercial buildings was at a lower level than in the same period last year, refurbishment project sales for internal blinds were more resilient. 

 

Roofing sales benefited from a handful of larger projects on industrial buildings when compared to a year ago, although these were at keen margins in a very competitive marketplace. Exterior wall insulation activities experienced a slower first half as the result of delays to a number of projects, including the next phase of a major social housing project in Glasgow and others within the M62 corridor. This work is now commencing and should benefit the second half.

 

Demand for products  that assist in managing the use of water in the built environment continued to be relatively resilient, benefiting from sales into the infrastructure and refurbishment market sectors, whilst demand for house building products continued to show steady improvement. Encouragingly, a higher proportion of construction product sales were to international markets, particularly the Middle East and Europe.

 

Engineering Products Division

 

Alumasc Precision continued to build strongly on the recovery from recession which began in the second half of last year. UK and international demand across all end user markets rebounded strongly, reflecting improved underlying demand, greater use of light-weight, recyclable aluminium engine components for new generation diesel engines, market share gains and re-stocking. In addition, Alumasc Precision is successfully leveraging its long-standing expertise in low pressure die-casting and machining in order to win new work for larger engine transmission systems, so far adding around £2 million to annualised sales.

 

Alumasc Precision's first-half revenues improved by almost 80% to £16.4 million, enabling a strong turn-around from a small operating loss reported in the first six months of last year to a profit of £1.3m this half year. 

 

Alumasc Dispense continued to experience difficult trading conditions, albeit improved on a year ago, and reported a small operating loss in the six months to December 2010. 

 

Cash flow, pensions and balance sheet

 

In line with expectations, the group experienced a net outflow of cash of £2.6 million in the first half year, reflecting higher working capital requirements in line with the increase in revenues, and the payment of the prior year's final dividend of £2.4 million at the end of October. Consequently, group net debt increased from £9.3 million at 30 June to £11.9 million at 31 December 2010, utilising 60% of committed borrowing facilities. Group interest cover2 improved from 7.7 times twelve months ago to 9.0 times, reflecting improved operating profits and a lower net finance expense. 

 

Working capital and capital expenditure requirements continue to be closely controlled, with average trade working capital as a percentage of annual sales decreasing from 18% to 15% in the twelve months to December 2010.

 

As anticipated, following a substantial reduction in the pension deficit over the last three years, agreement was reached with the Pension Trustees to reduce cash contributions from £3.4 million per annum to an average of £2.3 million per annum, effective from September 2010. Measured on an IAS19 basis there was a further significant improvement in the pre-tax pension deficit from £11.6 million at 30 June to £5.4 million at 31 December 2010, arising mainly from company contributions and a good investment performance, which increased scheme assets.

 

Capital expenditure was £0.8 million in the six month period, some £0.5 million below depreciation and non-brand amortisation costs.

 

Other than working capital, group borrowings and pensions, described above, there were no significant changes to the group's balance sheet at 31 December 2010 compared to the prior year end. The reduced pension deficit enabled shareholders' equity to grow from £27.7 million at 30 June to £30.1 million at 31 December 2010. Gearing at the half year end was 40%.

 

2 Interest cover is calculated by dividing underlying operating profit by the net finance expense relating to bank borrowings

 

Business Development

 

The group continues to develop international markets for certain of its brands with particular focus on growing export sales of Levolux's solar shading systems in North America and the Middle East, Gatic Slotdrain in the USA, and Alumasc Precision's products in the USA, Europe and the Far East. Levolux has extended its network of sales representatives and further strengthened relationships with major architects, specifiers and installers in recent months. Specifications for projects in North America have almost doubled in value over the last six months to around US$5 million, and orders of US$300,000 were won in January alone. This is expected to benefit future financial years. Importantly, Gatic recently won its first order to supply an airport in the USA, a key market segment being targeted. Alumasc Precision is starting to see significant UK and international opportunities with the potential for further sustainable sales growth over the medium term.

 

Over the last six months, the management of the group's roofing, walling, rainwater and drainage businesses has been restructured with a greater emphasis on driving sales growth, marketing and innovation. As a result, management teams are now in place to optimise the strong market positions and branding that characterise each of our business segments.

 

Outlook

 

The Board expects that financial performance in the second half of the year will benefit from the continuing resurgence at Alumasc Precision, improved revenues from solar shading activities supported by the large Chiswick Park contract, and the normal seasonal bias in favour of the second half. 

 

Whilst the Board remains cautious about short term prospects for the UK construction market, it has increasing confidence that the exciting new product and export market development initiatives in both the Building Products division and at Alumasc Precision, together with the group's strong balance sheet and strategic positioning in sustainable building product niches, will enable Alumasc to leverage the anticipated steady economic recovery beyond the current financial year.

 

Paul Hooper

Chief Executive

3 February 2011


CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

for the half year to 31 December 2010

 



Half year to 31 December 2010

Half year to 31 December 2009

Year to

30 June 2010



Before

non-recurring items and brand amortisation

 

Non-recurring items and brand amortisation

 

 

 

 

Total

Before

non-recurring items and brand amortisation

 

Non-recurring

 items and brand amortisation

 

 

 

 

Total

 

 

 

 

Total



(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


Notes

£'000

£'000

£'000

£'000

£'000

£'000

£'000










Revenue

4

51,974

-

51,974

44,463

-

44,463

92,972

Cost of sales


(37,626)

-

(37,626)

(30,473)

-

(30,473)

(62,573)

Gross profit


14,348

-

14,348

13,990

-

13,990

30,399










Net operating expenses









   Net operating expenses before non-recurring items and brand amortisation


(11,536)

-

(11,536)

(11,254)

-

(11,254)

(24,754)

   Brand amortisation

5

-

(160)

(160)

-

(156)

(156)

(315)

   Restructuring costs

5

-

(104)

(104)

-

(102)

(102)

(368)

Operating profit

4

2,812

(264)

2,548

2,736

(258)

2,478

4,962










Finance income


1,958

-

1,958

1,985

-

1,985

3,926

Finance expenses


(2,667)

-

(2,667)

(2,838)

-

(2,838)

(5,510)

Profit before taxation


2,103

(264)

1,839

1,883

(258)

1,625

3,378










Tax expense

6

(639)

36

(603)

(571)

72

(499)

(1,138)










Profit for the period


1,464

(228)

1,236

1,312

(186)

1,126

2,240










Other comprehensive income









Gains/(losses) recognised directly in equity:









    Actuarial gain/(loss) on defined benefit pensions




4,812



3,051

(2,058)

    Effective portion of changes in fair value of cash flow hedges




143



(8)

(79)

    Exchange differences on retranslation of foreign operations




(6)



(3)

12

    Tax on items taken directly to or transferred from equity




(1,432)



(854)

598

Other comprehensive income for the period, net of tax




3,517



2,186

(1,527)










Total comprehensive income for the period, net of tax




4,753



3,312

713










Total comprehensive income for the period attributable to:









    Equity holders of the parent




4,753



3,312

703

    Non-controlling interest




-



-

10





4,753



3,312

713










Earnings per share




Pence



Pence

Pence










-  Basic

9



3.5



3.1

6.2










-  Diluted

9



3.4



3.1

6.2


 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

at 31 December 2010

 





31 December

31 December

30 June





2010

(Unaudited)

2009

(Unaudited)

2010

(Audited)





£'000

£'000

£'000

Assets







Non-current assets






Property, plant and equipment


14,900

15,776

15,131

Goodwill




16,888

16,888

16,888

Other intangible assets


3,705

4,281

4,003

Financial asset investments



17

17

17

Deferred tax assets



1,447

2,206

3,255





36,957

39,168

39,294

Current assets






Inventories



13,670

12,454

11,649

Biological assets


468

450

372

Trade and other receivables


20,231

16,448

21,280

Cash and cash equivalents


4,887

5,700

5,622

Income tax receivable


-

-

35

Derivative financial assets


1

17

1





39,257

35,069

38,959






Total assets



76,214

74,237

78,253







Liabilities






Non-current liabilities





Bank overdraft


(1,850)

-

-

Interest bearing loans and borrowings


(14,955)

(14,923)

(14,939)

Employee benefits payable


(5,359)

(7,878)

(11,626)

Provisions




(361)

(564)

(339)

Deferred tax liabilities


(1,638)

(1,638)

(1,853)





(24,163)

(25,003)

(28,757)

Current liabilities






Interest bearing loans and borrowings


-

(3)

-

Trade and other payables


(21,098)

(16,608)

(20,967)

Provisions




(159)

(96)

(213)

Income tax payable



(311)

(324)

-

Derivative financial liabilities


(397)

(468)

(540)





(21,965)

(17,499)

(21,720)

Total liabilities



(46,128)

(42,502)

(50,477)








Net assets



30,086

31,735

27,776








Equity







Called up share capital


4,517

4,517

4,517

Share premium



445

452

445

Capital reserve - own shares


(369)

(178)

(369)

Hedging reserve



(290)

(340)

(389)

Foreign currency reserve



39

34

45

Profit and loss account reserve



25,744

27,217

23,494

Equity attributable to equity holders of the parent


30,086

31,702

27,743

Non-controlling interest



-

33

33

Total equity



30,086

31,735

27,776


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

for the half year to 31 December 2010

 




Half year to

Half year to

Year to




31 December

31 December

30 June





2010

(Unaudited)

2009

(Unaudited)

2010

(Audited)





£'000

£'000

£'000

Operating activities






Operating profit


2,548

2,478

4,962

Adjustments for:






Depreciation



1,079

1,282

2,402

Amortisation


392

357

729

(Gain) / loss on disposal of property, plant and equipment


(19)

(5)

3

(Increase) / decrease in inventories


(2,021)

70

876

Increase in biological assets


(96)

(109)

(31)

Decrease / (increase) in receivables


1,049

3,026

(1,805)

(Decrease) / increase in trade and other payables


(39)

(1,049)

3,323

Movement in provisions


(33)

161

53

Movement in retirement benefit obligations


(1,849)

(2,079)

(3,844)

Share based payments


22

24

44

Cash generated from operations


1,033

4,156

6,712

Tax (paid) / repaid




(96)

165

(219)

Net cash inflow from operating activities


937

4,321

6,493







Investing activities






Purchase of property, plant and equipment


(584)

(377)

(707)

Payments to acquire intangible fixed assets


(148)

(100)

(139)

Proceeds from sales of property, plant and equipment


19

28

36

Acquisition of subsidiary undertakings


(99)

-

(200)

Interest received


12

17

22

Net cash outflow from investing activities


(800)

(432)

(988)







Financing activities






Interest paid



(300)

(348)

(663)

Equity dividends paid



(2,416)

(2,430)

(3,602)

Equity dividends paid to non-controlling interests


-

-

(10)

Draw down of borrowings


-

4,997

4,994

Purchase of own shares


-

-

(191)

Repayment of refund of share issue costs


-

-

(7)

Net cash (outflow) / inflow from financing activities


(2,716)

2,219

521








Net (decrease) / increase in cash and cash equivalents

 

(2,579)

6,108

6,026








Cash and cash equivalents at beginning of period


5,622

(405)

(405)

Net (decrease) / increase in cash and cash equivalents

(2,579)

6,108

6,026

Effect of foreign exchange rate changes


(6)

(3)

1

Cash and cash equivalents at end of period

 

3,037

5,700

5,622








Cash and cash equivalents comprise:





Cash and short term deposits


4,887

5,700

5,622

Bank overdrafts




(1,850)

-

-


 

3,037

5,700

5,622


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half year to 31 December 2010

 

 

Share

Share

Capital reserve -

 

 

Hedging

 

Foreign

currency

Profit

and loss account

 

Non-controlling

Total

 

 

capital

premium

own shares

reserve

reserve

reserve

Total

interest

equity

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

At 1 July 2010

4,517

445

(369)

(389)

45

23,494

27,743

33

27,776

 

Profit for the period

-

-

-

-

-

1,236

1,236

-

1,236

 

Exchange differences on retranslation of foreign operations

-

-

-

-

(6)

-

 

(6)

-

(6)

 

Net gain on cash flow hedges

-

-

-

143

-

-

143

-

143

 

Tax on derivative financial liability

-

-

-

(44)

-

-

(44)

-

(44)

 

Actuarial gain on defined benefit pensions, net of tax

-

-

-

-

-

3,424

 

3,424

-

3,424

 

Acquisition of minority interest

-

-

-

-

-

(16)

(16)

(33)

(49)

 

Dividends

-

-

-

-

-

(2,416)

(2,416)

-

(2,416)

 

Share based payments

-

-

-

-

-

22

22

-

22

 

At 31 December 2010

4,517

445

(369)

(290)

39

25,744

30,086

-

30,086

 

 

 









 

 

Share

Share

Capital reserve -

 

 

Hedging

 

 Foreign

currency

Profit

and loss account


Non-controlling

Total

 

 

capital

premium

own shares

reserve

reserve

reserve

Total

interest

equity

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

At 1 July 2009

4,517

452

(178)

(332)

37

26,300

30,796

33

30,829

 

Profit for the period

-

-

-

-

-

1,126

1,126

-

1,126

 

Exchange differences on retranslation of foreign operations

-

-

-

-

(3)

-

 

(3)

-

(3)

 

Net loss on cash flow hedges

-

-

-

(8)

-

-

(8)

-

(8)

 

Actuarial gain on defined benefit pensions, net of tax

-

-

-

-

-

2,197

 

2,197

-

2,197

 

Dividends

-

-

-

-

-

(2,430)

(2,430)

-

(2,430)

 

Share based payments

-

-

-

-

-

24

24

-

24

 

At 31 December 2009

4,517

452

(178)

(340)

34

27,217

31,702

33

31,735

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

for the half year to 31 December 2010

 

1. Basis of preparation

The condensed consolidated interim financial statements of The Alumasc Group plc and its subsidiaries have been prepared on the basis of International Financial Reporting Standards (IFRS), as adopted by the European Union, that are effective at 31 December 2010.

 

The condensed consolidated interim financial statements have been prepared using the accounting policies set out in the statutory accounts for the financial year to 30 June 2010 and in accordance with IAS 34 "Interim Financial Reporting".

 

The consolidated financial statements of the group as at and for the year ended 30 June 2010 are available on request from the company's registered office at Burton Latimer,  Kettering, Northants, NN15 5JP or at the website www.alumasc.co.uk.

 

The comparative figures for the financial year ended 30 June 2010 are not the company's statutory accounts for that financial year but have been extracted from these accounts. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

The condensed consolidated interim financial statements for the half year ended 31 December 2010 are not statutory accounts and have been neither audited nor reviewed by the group's auditors.  They do not contain all of the information required for full financial statements, and should be read in conjunction with the consolidated financial statements of the group as at and for the year ended 30 June 2010. 

 

These condensed consolidated interim financial statements were approved by the Board of Directors on

3 February 2011.

 

 

2. Estimates

The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expense.  Actual results may differ from these estimates.

 

Except as described below, in preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2010.

 

During the six months ended 31 December 2010, management reassessed and updated its estimates in respect of retirement benefit obligations based on market data available at 31 December 2010 and also taking into account the government's decision to move from RPI to CPI as an inflationary measure for determining the minimum pension increases to be applied to the statutory index-linked features of retirement benefits. When combined, all these factors resulted in a £4.8 million pre-tax actuarial gain in the six month period to 31 December 2010.

 

 

3. Risks & Uncertainties

A summary of the group's principal risks and uncertainties was provided on pages 25 and 26 of Alumasc's Report and Accounts 2010. The Board considers these risks and uncertainties remain relevant to the current financial year.

 



 

4. Segmental analysis

 

 

External

 

 

Inter-segment

 

Revenue

Total

Segmental Operating

Result

 

£'000

£'000

£'000

£'000

Half Year to 31 December 2010 (Unaudited)

 

 

 

 

 

 

 

 

 

Solar Shading

7,784

-

7,784

198

Roofing & Walling

9,791

-

9,791

148

Energy Management

17,575

-

17,575

346

 

 

 

 

 

Construction Products

6,132

-

6,132

864

Rainwater, Drainage & Other

10,056

43

10,099

928

Water Management & Other

16,188

43

16,231

1,792

 

 

 

 

 

Building Products

33,763

43

33,806

2,138

 

 

 

 

 

Alumasc Precision

15,858

584

16,442

1,312

Alumasc Dispense

2,353

-

2,353

(57)

Engineering Products

18,211

584

18,795

1,255

 

 

 

 

 

Elimination / Unallocated costs

-

(627)

(627)

(581)

 

 

 

 

 

Total

51,974

-

51,974

2,812

 

 

 

 

 

 

 

 

 

£'000

 

 

 

 

 

Segmental result

 

 

 

2,812

Brand amortisation

 

 

 

(160)

Restructuring costs

 

 

 

(104)

Total operating profit

 

 

 

2,548

 

 

 

 

 

 

 

External

 

 

Inter-segment

 

Revenue

Total

Segmental Operating

Result

 

£'000

£'000

£'000

£'000

Half Year to 31 December 2009 (Unaudited)

 

 

 

 

 

 

 

 

 

Solar Shading

9,197

-

9,197

1,280

Roofing & Walling

8,394

35

8,429

285

Energy Management

17,591

35

17,626

1,565

 

 

 

 

 

Construction Products

6,085

-

6,085

1,267

Rainwater, Drainage & Other

9,582

-

9,582

681

Water Management & Other

15,667

-

15,667

1,948

 

 

 

 

 

Building Products

33,258

35

33,293

3,513

 

 

 

 

 

Alumasc Precision

8,692

473

9,165

(87)

Alumasc Dispense

2,513

-

2,513

(174)

Engineering Products

11,205

473

11,678

(261)

 

 

 

 

 

Elimination / Unallocated costs

-

(508)

(508)

(516)

 

 

 

 

 

Total

44,463

-

44,463

2,736

 

 

 

 

 

 

 

 

 

£'000

 

 

 

 

 

Segmental result

 

 

 

2,736

Brand amortisation

 

 

 

(156)

Restructuring costs

 

 

 

(102)

Total operating profit

 

 

 

2,478

 

 

 

External

 

 

Inter-segment

 

Revenue

Total

Segmental Operating

Result

Full Year to 30 June 2010 (Audited)

 

 

 

 

 

 

 

 

 

Solar Shading

16,517

-

16,517

1,729

Roofing & Walling

17,119

-

17,119

209

Energy Management

33,636

-

33,636

1,938

 

 

 

 

 

Construction Products

11,473

-

11,473

2,171

Rainwater, Drainage & Other

19,330

89

19,419

1,242

Water Management & Other

30,803

89

30,892

3,413

 

 

 

 

 

Building Products

64,439

89

64,528

5,351

 

 

 

 

 

Alumasc Precision

23,049

905

23,954

1,311

Alumasc Dispense

5,484

-

5,484

(50)

Engineering Products

28,533

905

29,438

1,261

 

 

 

 

 

Elimination / Unallocated costs

-

(994)

(994)

(967)

 

 

 

 

 

Total

92,972

-

92,972

5,645

 

 

 

 

 

 

 

 

 

£'000

 

 

 

 

 

Segmental result

 

 

 

5,645

Brand amortisation

 

 

 

(315)

Restructuring costs

 

 

 

(368)

Total operating profit

 

 

 

4,962

 

 

5. Non-recurring items and amortisation


Half year to

Half year to

Year to




31 December

31 December

30 June




2010

2009

2010




(Unaudited)

(Unaudited)

(Audited)




£'000

£'000

£'000







Brand amortisation

160

156

315

Restructuring costs

104

102

368


264

258

683

 

Restructuring costs relate to restructuring and redundancy costs in all periods, including costs associated with the closure of the Alumasc Group Pension Scheme during 2009/10.

 



 

6. Tax expense










Half year to

Half year to

Year to





31 December

31 December

30 June





2010

(Unaudited)

2009

(Unaudited)

2010

(Audited)





£'000

£'000

£'000








Current tax:





UK corporation tax


404

320

399

Amounts under / (over) provided in previous years

37

-

(53)

Total current tax


441

320

346








Deferred tax:






Origination and reversal of timing differences

162

179

645

Tax underprovided in previous years

-

-

147

Total deferred tax

162

179

792















Total tax expense

603

499

1,138








Tax recognised in other comprehensive income:




Deferred tax:




Actuarial gains/(losses) on pension schemes

1,388

854

(576)

Cash flow hedge

44

-

(22)

Tax charged/(credited) to other comprehensive income

1,432

854

(598)








Total tax charge in the statement of comprehensive income

2,035

1,353

540

 

 

7. Dividends

The directors have approved an interim dividend per share of 3.25p (2009: 3.25p) which will be paid on 8 April 2011 to shareholders on the register at the close of business on 11 March 2011.  The cash cost of the dividend is expected to be £1.2 million.  In accordance with IFRS accounting requirements, as the dividend was approved after the balance sheet date, it has not been accrued in the interim consolidated financial statements.  A final dividend per share of 6.75p in respect of the 2009/10 financial year was paid at a cash cost of £2.4 million during the period.

 

 

8. Share Based Payments

During the period, the group awarded 140,000 (2009: 140,000) options under the Executive Share Option Plan ("ESOP").  These options have an exercise price of £1.15 and require certain criteria to be fulfilled before vesting.  28,000 (2009: 18,000) existing ESOP options lapsed during the period.

 

Total awards granted under the group's Long Term Incentive Plans ("LTIP") amounted to 342,391 (2009: 316,781).  These awards have no exercise price but are dependent on certain vesting criteria being met.  105,217 (2009: 126,757) existing LTIP awards lapsed during the period.

 

 

9. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period.

 

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period, after allowing for the exercise of outstanding share options. The following sets out the income and share data used in the basic and diluted earnings per share calculations:

 

 

For the year to 30 June 2010, £6,000 of the £2,240,000 profit for the year was attributable to non-controlling interests.  For the same period, an exchange gain of £4,000 arose on the non-controlling interest element of the retranslation of foreign operations, generating a total comprehensive income attributable to non-controlling interests for the year of £10,000.

 

 

10. Related party disclosure

The group has a related party relationship with its directors and with the UK pension schemes.  There has been no material change in the nature of the related party transactions described in the Report and Accounts 2010.  Related party information is disclosed in note 30 of that document.   

 

 

Responsibility Statement

 

The Directors confirm that, to the best of their knowledge:

 

a) the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU; and

 

b) the interim management report includes a fair review of the information required by:

·      DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred 
during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

·      DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

On behalf of the Board

 

 

 

G P Hooper                                                           A Magson             

Chief Executive                                                     Group Finance Director


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