Alumasc Group (ALU) H1 2025 earnings summary

Executive summary

• Achieved record H1 performance with revenue up 20% to £57.4m and underlying PBT up 19% to £7.5m, driven by both organic and inorganic growth across all divisions.

• All three divisions—Water Management, Building Envelope, and Housebuilding Products—delivered revenue and profit growth, outperformed their markets, and saw strong overseas sales growth (+43%).

• Strategic focus on sustainability, margin improvement, and international expansion continues to drive results, with ongoing investment in automation and new product development.

• Interim dividend increased to 3.50p per share.

Financial highlights

• Revenue rose 20.1% year-over-year to £57.4m, with 12% from ARP acquisition and 8% organic growth; gross profit increased to £21.6m with a stable gross margin of 37.6%.

• Underlying profit before tax rose 19% to £7.5m; underlying operating profit grew 20.3% to £8.1m; underlying EPS up 21.5% to 15.8p; basic EPS up 19.3% to 13.6p.

• Operating margin stable at 14.1%; Water Management at 15.8%, Building Envelope at 12.5%, Housebuilding Products at 25.0%.

• Strong cash conversion at 127% and free cash flow of £5.4m.

• Net bank debt reduced to £4.6m; leverage/gearing at 0.3x trailing EBITDA.

Outlook and guidance

• Expect continued resilient UK performance and normalization of export growth in H2, with margin improvement targeted through efficiency gains, ARP synergies, and cost savings from Dover closure.

• Minimal impact expected from NIC/NLW increases, with mitigation through cost reductions and pricing; cost increase of ~£0.6m p.a. from April 2025.

• Board remains confident in achieving full-year forecasts and long-term margin targets of 15%-20%.