Alumasc Investors - ALU

Alumasc Investors - ALU

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Stock Name Stock Symbol Market Stock Type
Alumasc Group Plc ALU London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 252.50 08:00:18
Open Price Low Price High Price Close Price Previous Close
255.00 252.50 256.00 252.50 252.50
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Industry Sector

Top Investor Posts

chickcrumbs: The investors Chronicle have advised to sell ALU. Me I have added to my holding. I think the construction industry will generally benefit from the government gradually loosening the purse strings especially later in the year. The Carillion effect will subside as will as the bad weather. Just my thoughts.
dan_the_epic: FWIW, I re-estimate a 5 bps swing in gilts (10 yr investment grade corporate sterling a useful benchmark) is about £0.75m swing in the deficit, or a couple of pence on the share price. Looking at the multiple attached to Alumasc, it certainly looks correlated to the pension deficit size. This used to trade at 12-13x earnings a couple of years ago. Now its on 7.2x cash adjusted 2018e. Of course, you can't just ignore the deficit, but one would have thought gilts are at the bottom of their cycle, and we all know that this is quality outfit. I fully expect long-term investors to be duly rewarded here in time. Finncap report out yesterday (Who are the most bearish brokers in terms of PT) and they have a retained 225p PT which is based off a multiple improvement to 9.4x on the back of stronger 2018e EPS of over 21p. They expect revenue to come in at £106m next year (remember to adj for scaffolding sale on the top line but not profitability as breaks even). I take a very sceptical view to any commissioned small cap research, but hard to fault any of their applied logic. Even adjusting that deficit into the EV calc and you get 9.6x adjusted PE on my calculations, again below the range from a couple of years ago, despite the business fundamentally having made great strides. Easy to forget the CEO bought a very decent chunk of stock (£90k IIRC) at around these prices earlier in the year. Happy to let this chug along for a merry while yet! P.S. Wilmdav - think you typo'd; you mean a reduction of 35%
superdonkey: tipped in the telegraph Questor column Patient investors with an appetite for risk may be intrigued by the turnaround story that appears to be gathering momentum at Alumasc. Once an engineering conglomerate, the firm has turned itself into a specialist building products company, completing the shift with a final £4m disposal last summer. The Kettering-based concern now has four operations: solar shading, roofing and walls, water management and housing. Its real expertise lies in energy and water conservation and helping builders to meet regulatory requirements. This all sounds very promising, given the buoyant nature of the housing market and demand for cost and resource-efficient dwellings. Now it is up to the chief executive, Paul Hooper, and his team to make it work. The first-half numbers published in January suggest the story could be a slow burner. Sales rose by 17pc but pre-tax profits rose by just 2pc, hampered by the rising cost of materials, notably steel, caused by the pound’s post-referendum fall. But a 6pc increase in the interim dividend suggests that management is optimistic, and a recent £5m contract takes the order book to a record £33m. If a combination of price rises, cost control and rising sales can take margins higher, the stock could look cheap on less than 10 times earnings with a yield of nearly 4pc. The balance sheet has net cash, but there is a £33m pension deficit that needs to be watched carefully. The market has yet to fully buy into the repositioning of the business and this could present an opportunity in a below-the-radar stock. Questor says: buy Ticker: ALU
runthejoules: SHARES magazine Great Ideas: The market valuation attached to building products business Alumasc (ALU) does not reflect its earnings potential or inherent qualities. The market doesn’t appear to have picked up on the Kettering-based company’s transformation from an engineering conglomerate to a pure play on premium building products. The stock trades on 8.2 times forecast earnings for the year to June 2018 which looks far too low, in our opinion. RENEWED FOCUS It is not a perfect like-for-like comparison but Renew Holdings’ (RNWH:AIM) share price has increased six-fold in the last five years as the company shifted its focused from heavy construction to specialist engineering services. Its share price was also static for a while, but the re-rating was spectacular once investors realised how Renew’s business had changed. The same could apply to Alumasc. Great Ideas The last of Alumasc’s engineering-related businesses was sold in July 2016 with the £4m disposal of Dyson Diecastings. The focus is now on ‘fast flowing streams’ in the building products space. This encompasses a focus on sustainable products which help conserve energy and water and solutions which help constructors meet building regulations. The investment in these areas and an increase in marketing spend was rewarded by a 17% increase in first half revenue to £50.7m. Unfortunately, the impressive top-line growth was not replicated at the bottom-line. Adjusted pre-tax profit only nudged ahead 2% to £4.1m as rising input costs hit margins. The increase in costs can be attributed to sterling weakness and rising steel prices and although these have now largely been passed through, there was a lag which hit profitability. BUMPER ORDER BOOK A near-record £27.6m order book and the timing of completion on several large contracts underpins boss Paul Hooper’s confidence that margins can be rebuilt in the remainder of its current financial year. This could act as a positive catalyst for the share price. ALUMASC GROUP - Comparison Line Chart (Rebased to first) The company’s operations coalesce in four key areas: solar shading and screening; roofing and walling; water management; and housebuilding and ancillary products. The Levolux solar shading business and Gatic drainage systems arm are successfully winning orders overseas. Mainly driven by Levolux sales in the US, export revenue almost doubled to £7.5m in the six months to 31 December 2016. The niche focus and international expansion should help the company outperform the modest growth expected in UK construction in the coming months. Keep a close eye on the £33m pension deficit. Annual cash contributions of £3.2m didn’t prevent Alumasc from hiking its first half dividend by 5.6% to 2.85p. (TS) Alumasc (ALU) 174.5p Stop loss: 139.6p Market value: £63m
runthejoules: Yes Graham Neary said it should work out well for investors in 3-5 years! Guess my failure to sell at the open yesterday for 15% profit makes this a long-term holding then!
marky55: Naked Trader's view:"I've bought some Alumasc (ALU). This one looks to be in the middle of a rerating and deservely so.Profit is up 15% and it's moved into a net cash position. It is benefitting from a much improved demand from UK construction.It seems to be re-focusing, getting rid of some poor performing businesses which means its debt has now gone.Dividend is up substantially and unless the market as a whole really tanks it looks to have some decent upside of 25% or so. It is certainly breaking out very strongly - a break through 200p would be very promising for a rise up to 225p area quite quickly barring a market collapse but I feel fair value is around 250p so for me plenty of upside left.I think a lot of investors find it hard to buy a share that has already risen a lot - but believe me - it's often better buy something that's gone up!ALU goes ex dividend next Thursday for a very decent 3.5pdividend, so that to look forward to."
cestnous: From I.C. today; Alumasc builds momentum Alumasc (ALU) delivered its best performance since the recession as product innovation, new staff and further forays into the buoyant London and south-east construction markets drove underlying operating profit up 16 per cent to £9m. Investors cheered the news, sending shares in the building products supplier up 7 per cent on results day. New products and systems accounted for a fifth of full-year sales. Management’s recruitment of “high calibre” staff also played a key role in driving growth. New talent helped the roofing and walling division break into higher-growth markets and spurred a 22 per cent rise in divisional revenue. Chief executive Paul Hooper believes Alumasc can capitalise more on demand for building products following the sale of the struggling precision engineering business and Pendock Profiles unit. Those disposals, coupled with a 37 per cent jump in operating cash flow, pushed Alumasc’s bank balance into the black. Management plans to use the war chest to make acquisitions and continue investing in new products and facilities. Broker Peel Hunt forecasts adjusted EPS of 19.5p in the year to June 2016 (up from 18.4p in full-year 2015). Alumasc’s building products businesses have grown about 3 per cent faster than the wider industry over the past five years. The shares are up 32 per cent since our buy tip (130p, 19 February 2015), yet still trade at just nine times forecast earnings. That flags value to us. DL Buy
philanderer: Alumasc Group plc (LON:ALU)‘s stock had its “buy” rating reiterated by equities research analysts at FinnCap in a research note issued to investors on Tuesday. They currently have a GBX 172p target price on the stock
battlebus2: Heres how it works bought at 90p and over 4.7 years i've collected 40p worth of dividends which equates to a 50% rise in the share price. Not a bad performance in my book. So spreads don't matter if your a long term investor.
cockneyrebel: By Tommy Stubbington Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. small and mid-cap stocks are a good bet for securing a steady income during a period of economic uncertainty, according to David Taylor, co-manager of Chelverton Asset Management Ltd.'s U.K. Equity Income Fund. Companies such as GAME Group PLC (GMG.LN), Cineworld Group PLC (CINE.LN), and McBride PLC (MCB.LN) offer attractive levels of dividend income not normally associated with the small and mid-cap sectors, Taylor said late Monday. "In a very low interest rate environment, people need income," Taylor told Dow Jones Newswires. Traditionally, funds have looked to banks and oil majors to provide this income. But investors have become increasingly wary of over-reliance on a small number of huge companies after BP PLC (BP.LN) suspended its dividend in the wake of the Deepwater Horizon disaster, Taylor said. Some have looked overseas for healthy dividend yields. However, a U.K. economy without prospects of spectacular growth, but looking increasingly unlikely to sink back into recession, has left a number of small and mid-cap bargains with steady or growing dividends, Taylor said. Taylor's fund invests only in small and medium-sized U.K. companies with an annual dividend yield of over 3.8%--an approach which rules out investments in the oil and gas, banking, and pharmaceutical sectors. It has a return of 24% for the year to date, compared with 6.7% for the FTSE All Share Index, and a dividend yield of 5.5%. Some income bargains are available amongst companies that have suffered setbacks such as profit warnings, Taylor said. With dividends less volatile than prices, such stocks offer high yields, at least temporarily. Taylor highlighted household goods manufacturer McBride and building contractor Keller Group PLC (KLR.LN) as high-yielding stocks in this category. Other small and mid-cap stocks, including Cineworld, Diploma PLC (DPLM.LN), and Braemar Shipping Services PLC (BMS.LN), enjoy steady yields and have a long track record of dividend growth, Taylor said. He also said there are some stocks investors have gradually fallen out of love with but that continue to pay dividends, pushing yields up. GAME Group, T. Clarke PLC (CTO.LN), and Alumasc Group PLC (ALU.LN), all fall into this group, Taylor said. Taylor expects a step up in dividend levels at the upcoming year-end earnings season, as small companies cotton on to the appeal of income to investors in an uncertain economic climate. "Advisors are saying to companies, 'put your dividend up'," he said.
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