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• Revenue Growth: Increased by 20% compared to the prior half year.

• Organic Revenue Growth: 8% increase across all divisions.

• Underlying Profit Before Tax: 7.5 million, up 19% from the previous half year.

• Operating Margin: Stable at 14.1%.

• Operating Cash Conversion: 127%.

• Net Bank Debt: 4.6 million, a 37% reduction since June 2024.

• Dividend: Interim dividend increased to 3.5p.

• Overseas Sales Growth: 43% increase, aided by the Chep Lap Kok Hong Kong airport order.

• UK Revenue Growth: 3% increase, outperforming a 5% market decline.

• Restructuring Costs: 700,000 related to the Dover site closure.

• Water Management Division Revenue Growth: 30% increase, with 9% organic growth.

• Building Envelope Division Revenue Growth: 8% increase.

• House Building Products Division Revenue Growth: 6% increase, with a 25% operating margin.

• Capital Expenditure: 2 million, including 400,000 for automation at Halstead.

• Pension Scheme Surplus: 3.3 million accounting surplus as of December.

• Warning! GuruFocus has detected 4 Warning Sign with PEP.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alumasc Group PLC (FRA:0JL) reported a record half-year performance with a 20% increase in revenue and a 19% rise in underlying profit before tax.

• The company achieved strong cash flows with a 127% operating cash conversion rate, indicating efficient cash management.

• Overseas sales grew by 43%, driven by significant projects such as the Chep Lap Kok Hong Kong airport order, showcasing successful international expansion.

• The company maintained a stable underlying operating margin of 14.1%, despite challenging market conditions.

• Alumasc Group PLC (FRA:0JL) has a strong balance sheet with a low leverage ratio of 0.3 times, providing significant headroom for future growth investments.

Negative Points

• The UK construction market, a key area for Alumasc Group PLC (FRA:0JL), experienced a 5% decline, posing challenges for domestic sales growth.

• The company incurred 700,000 in non-underlying restructuring costs due to the closure of its Dover site, with additional costs expected.

• Despite strong performance, the interim dividend increase was modest at 1.5%, which may not align with the positive financial results.

• The pension scheme remains a concern, with ongoing contributions required and no immediate plans to offload the risk to insurers.

• The company faces persistent demand headwinds in the UK market, which could impact future performance if conditions do not improve.

Q & A Highlights

Q: When will the company move itself onto the main market? A: There are no current plans to move back onto the main market. We are conscious of investors who benefit from the IHT advantages of our current listing. However, we will continue to keep the situation under review. - G. Paul Hooper, Chief Executive