Alumasc Group (ALU) H2 2025 earnings summary

Executive summary

• Achieved record performance across all divisions, with revenue up 13% to £113.4m and underlying profit before tax up 9% to £14.2m year-over-year, outperforming the subdued UK construction market.

• Organic revenue growth of 7% and further growth from the ARP acquisition, which contributed positively with further synergies expected.

• Over 80% of the portfolio is aligned with environmental growth drivers, supporting resilience and future growth.

• Strong balance sheet with leverage at 0.35x and significant capacity for further investment and acquisitions.

• Continued focus on sustainability, with substantial progress on net zero initiatives and environmental product declarations.

Financial highlights

• Revenue increased 13% year-over-year to £113.4m; organic growth contributed 7%, ARP acquisition added 6%.

• Underlying profit before tax rose 9% to £14.2m; underlying EPS up 11% to £0.299.

• Gross margin stable at 37.9% (down 10bps); operating margin at 13.7% (down 60bps) due to revenue mix.

• Cash conversion strong at 106%; net bank debt reduced to £5.8m after ARP earn-out payment.

• Proposed final dividend up 4% to £0.076, full-year dividend up 3% to £0.111, covered 2.7x by earnings.

Outlook and guidance

• Board expects another year of growth, with H2 weighting due to timing of overseas contracts and strong environmental and building safety regulations.

• Margin improvements anticipated from Dover closure, ARP synergies, and operational efficiencies.

• Well positioned for market recovery, with strong cash flows and investment capacity for both organic and inorganic growth.

• Capacity and capabilities in place to exploit demand recovery and export opportunities.