Alumasc Share Discussion Threads

[rcturner2] 14/3/2017 17:12

A flurry of small sells.

[grahamandkay] 14/3/2017 17:04

I was wondering the same, a bit out of character for this share!!

[runthejoules] 14/3/2017 16:30

Wondering if the drop today is just because of the £, Scottish referendum panic or a tree-shake? Any level 2 experts have an opinion?

[runthejoules] 14/3/2017 15:53

Wondering if the drop today is just because of the £, Scottish referendum panic or a tree-shake? Any level 2 experts have an opinion?

[rcturner2] 03/3/2017 08:53

I bought in on the 29th November 2016, so I am very happy here. I am not selling these at this price. They are still cheap and do not accurately reflect the current trading let alone the future potential.

[ironstorm] 03/3/2017 08:17

Junior I think these are behind the curve so more to go for.

They only completed their restructuring into a higher margin added value co.

The affects are only just being seen in the results and an even higher rating will follow with good execution.

Add to the US market and dollar which I think will turbo-charge performance over the next 12 months.

[junior21] 02/3/2017 21:34

NY Boy, there are indeed, especially for blue sky companies with little or no profits.

P.s. Who's to say this is the top of the market ;-)

[ny boy] 02/3/2017 21:04

Watching these but I don't buy market tops, too many frothy valuations about.

[junior21] 02/3/2017 21:01

Well I bought some of these yesterday and today in my SIPP and ISA. Don't normally like buying shares after such good runs but in this market I'd rather buy a reasonably priced company that appears to be in good health than one at knocked down prices that has had some difficulties. There's a lot of profit warnings out there with valuations being heavily punished as a result.

[deanowls] 02/3/2017 11:46

Next stop 2.20?

[rcturner2] 01/3/2017 10:50

Good momentum building here.

[nallen1] 28/2/2017 10:28

Prob why it's up today I guess

[superdonkey] 28/2/2017 09:36

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

[rcturner2] 21/2/2017 07:48

Happy with that. Vastly underrated company.

[runthejoules] 21/2/2017 07:17

Alumasc Group PLC £5m contract wins
21/02/2017 7:00am
UK Regulatory (RNS & others)

Alumasc (LSE:ALU)
Intraday Stock Chart

Today : Tuesday 21 February 2017
Click Here for more Alumasc Charts.

TIDMALU

RNS Number : 3741X

Alumasc Group PLC

21 February 2017

Announcement 21 February 2017

The Alumasc Group Plc ("Alumasc" or the "Group")

THE ALUMASC GROUP PLC - CONTRACT WINS

Alumasc (ALU.L), the premium building products, systems and solutions group, is pleased to announce that since the publication of its interim results on 31 January 2017, Levolux has secured three contracts to supply bespoke balcony and balustrading systems in the UK. The total value of these new project wins is approximately GBP5.0 million and will benefit the group's next two financial years.

As a result of these and other new work wins, Alumasc's overall order books have risen to GBP32.9 million, a new record level. This follows a 17% rise in Alumasc's first half revenues to GBP50.7 million, well ahead of UK construction market growth.

Paul Hooper, Alumasc's Chief Executive commented:

"The emerging success of Levolux's relatively new balconies business is an exciting development for Alumasc and demonstrates the group's ability to leverage its proven expertise in the design and manufacture of specialist building products into significant new markets. We are pleased with the continued development of the group's overall order books, which supports the Board's expectation for further sustainable growth across our business into the medium term."

Enquiries:

The Alumasc Group plc

Paul Hooper (Chief Executive)

[runthejoules] 09/2/2017 00:20

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] 08/2/2017 13:15

Oh dear, a 2.61% fall today, no large sells, averaging £5k. Still, last one was a buy, dividend due 23rd Feb & I am pretty sure the white paper on housing will kickstart things once its provisions are implemented (if only slightly).

[prospective investor] 07/2/2017 12:07

I was put off buying AGA range master due to the pension deficit a few years back.. they ultimately reduced it and we're taken over at a significantly higher price. It is a hard call but if they manage to reduce this deficit then this company is a gem

[mfhmfh] 06/2/2017 15:34

if we can break this current trading range then surely clear blue sky to circa 200p. IMHO.

[ironstorm] 06/2/2017 14:50

I take your point TT but the point of maximum pension pessimism was last year. I reckon We will now see this shrink gradually over the next few years.

Also I reckon they will benefit from the rebuild programmes and probably catch more business than historically with their technologies.

That is why I am here.

[tintin82] 06/2/2017 12:24

Good outfit with steady growth, looks cheap, but factor in that massive pension deficit and its a very different story. On the watch list for now.

[ironstorm] 02/2/2017 18:31

Returner - I agree I think there is a lot more to come with 2nd half. And it's cheap for such a company.

[rcturner2] 02/2/2017 13:19

I am still holding here, I see no reason to sell. PE ratio of 10 and yield pushing 4% are hardly the marks of an overpriced share.

[puku] 02/2/2017 12:56

also out for a 10% gain. Not excited by the news, but a solid company and happy to re-invest if it weakens.

[ironstorm] 01/2/2017 19:14

And don't forget US growth this year - which will have a very positive impact.

I thought the comments were very good for a good second half.