Kettering-based Alumasc reported a 10% increase in revenue to £98.1 million while underlying profit before tax was up 16% to £8.4 million in the year to the end of June.
The group's focus on building products – as evidenced by the fact that 92% of turnover is now derived from this division as opposed to a decade ago when that business only accounted for 40% of revenue – has proved highly profitable. Management is confident that growth – from both organic and from synergies – can achieved going forward. Bolt-on acquisitions – especially in the highly regulated field of drainage – are a distinct possibility for this cash-generative outfit.
Return on investment at Alumasc currently stands at around 20% and the debt at the group has been reduced from £7.7 million last year to a net cash position of £900,000. The only real comcern thrown up by the balance sheet is the group's pension obligation which has crept up to £16.8 million from last year's £14.3 million.