A strong full year performanceat building and engineering products specialist Alumasc (ALU) sees shares in the £60.1 million cap advancing 8.2% to 172.5p.
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.
