Alumasc (LSE:ALU) delivered a resilient first-half performance for the six months to 31 December 2025, navigating weaker UK construction conditions and project delays linked to the Building Safety Act and affordability pressures. Group revenue declined 12% year on year to £50.4m, primarily reflecting the absence of prior-period contributions from the Chek Lap Kok airport project in Hong Kong. Underlying operating margin eased to 8.9%, with underlying profit falling to £4.0m, in line with expectations for a more heavily second-half-weighted earnings profile.
Management responded to the softer top-line environment by implementing £1.1m of annualised cost savings and maintaining tight control of the balance sheet. The interim dividend was held at 3.5p, while net debt stood at £7.7m. The company also highlighted a materially improved pension surplus, which is expected to reduce future cash contributions and strengthen financial flexibility.
Operationally, Alumasc reported strong momentum in its order book, which rose 27% year on year excluding Chek Lap Kok and was 50% higher than December 2023 levels. Growth was supported by a £2m initial order relating to Changi Airport in Singapore, alongside a broadening international pipeline extending beyond the group’s traditional Asian and Middle Eastern markets. A leadership transition is underway, with a new CEO designate due to join in March, and the board reiterated confidence in meeting full-year expectations.
Looking ahead, the company believes it is well positioned to benefit from an eventual recovery in UK construction demand, increased infrastructure spending and the continued shift toward sustainable and green building solutions. These trends are expected to support margin improvement and longer-term value creation for shareholders.
More about Alumasc
Alumasc Group plc is a UK-based supplier of building products, systems and solutions, with a strong focus on sustainability. The group operates across water management, roofing and other construction-related segments, serving infrastructure, commercial and residential markets in the UK and internationally. Alumasc is positioned to benefit from rising demand for environmentally focused building solutions and tightening sustainability regulations across the construction sector.
Leave a Reply