Alumasc Group (ALU) Trading update summary

Trading performance and financial highlights

• Revenue for FY26 expected at approximately £107m, down from £113m in FY25, reflecting subdued demand and project delays.

• Underlying profit before tax anticipated at around £10m, compared to £14m in FY25, broadly in line with revised market consensus.

• Order book at June 2026 is 49% higher year-on-year, driven by a refocused commercial strategy.

• Net bank debt at year-end stands at about £7m, with leverage at 0.5x, despite temporary working capital increases.

• Balance sheet remains robust, supported by prudent management of working capital and buffer stock holdings.

Divisional performance and strategic initiatives

• Housebuilding Products division achieved revenue growth of approximately 16% versus FY25, gaining market share through customer service and new products.

• Building Envelope division maintained stable revenues, leveraging strong customer relationships and technical expertise.

• Water Management division saw a revenue decline of about 16% year-on-year, but only 3% excluding the prior year’s CLK project.

• Commercial and operational initiatives in Water Management are underway, targeting productivity and cost efficiencies.

• Strategic focus remains on operational efficiencies and service improvements to support future growth.

Market environment and outlook

• Demand in key markets was subdued by affordability concerns, planning constraints, and fragile confidence.

• Macroeconomic and geopolitical instability, including the Middle East conflict and UK political uncertainty, intensified headwinds in Q4 FY26.

• Project decision-making and customer call-offs experienced further delays in the final quarter.

• Management remains cautious but committed to ongoing performance improvement initiatives.

• Further details on strategic progress and outlook will be provided with full year results in September 2026.