Alumasc Group PLC Update on Levolux strategy (7295D)
28 June 2019 - 8:00PM
UK Regulatory
TIDMALU
RNS Number : 7295D
Alumasc Group PLC
28 June 2019
28 June 2019
The Alumasc Group plc (ALU.L) (the Group")
Update on Levolux strategy
Further to the Group's trading update on 14 June, the Board has
now progressed its review of the optimal strategy for the continued
development of Levolux as part of the broader Alumasc Group. The
conclusions are set out below.
Levolux is a business with great future potential, both in the
UK and international markets and is one of Alumasc's strongest
brands.
The Board will focus the business where it believes it can
clearly differentiate and add most value to customers and
shareholders. This will involve developing the more profitable
areas of the business, simplifying operational delivery and
reducing risk with the key initial steps being to:
-- combine Levolux solar shading, screening and balconies with
the Group's roofing business in a new "Alumasc Building Envelope"
division, providing integrated solutions for developers and
specifiers seeking high quality roofing and facades systems. A new,
collaborative divisional sales approach will increase Levolux's
existing market reach and leverage existing strong customer
relationships within the wider Group.
-- focus on design and supply activities, with installation
increasingly carried out by third party registered contractors as
is the case in the rest of the Group. The vast majority of Levolux
projects in the UK currently involve in-house installation which
will in future only be offered where this service is particularly
valuable to customers.
-- invest in local technical sales resources to accelerate
growth in the profitable Levolux business in North America, which
currently generates revenues of circa GBP4 million p.a. on a design
and supply only basis.
-- optimise the utilisation of business locations across Alumasc
to drive synergy and efficiency within the Building Envelope
division. This forms part of the Group's broader strategy set out
in its 2019 interim report and will enable greater sharing of
common support services.
Alongside these initiatives the Company will reduce the
break-even level of sales by increasing contribution margins and
controlling overheads.
Initiatives to effect these changes will begin immediately and
are expected to be largely implemented by the end of the coming
financial year. Consequently, the Board's expectations for
underlying performance in the year to June 2020 are unchanged,
although the expectation is that this re-positioning will enhance
the prospects for the Group in the medium term.
This announcement contains inside information for the purposes
of Market Abuse Regulation (Regulation (EU) No. 596/2014). The
person responsible for making this announcement on behalf of the
Company is Helen Ashton, Group Company Secretary.
Enquiries:
The Alumasc Group plc +44 (0)1536 383 844
Paul Hooper (Chief Executive)
Andrew Magson (Group Finance Director)
Peel Hunt (Broker)
Mike Bell +44 (0)207 418 8831
FinnCap (NOMAD)
Julian Blunt +44 (0)207 220 0561
Camarco:
Ginny Pulbrook +44 (0)203 757 4992
Tom Huddart +44 (0)203 757 4991
Email: alumasc@camarco.co.uk
Notes to Editors:
Alumasc is a UK-based supplier of premium building products,
systems and solutions. Almost 80% of group sales are driven by
building regulations and specifications (architects and structural
engineers) because of the performance characteristics offered.
The group has three business segments with strong positions and
brands in their individual markets: Roofing & Water Management;
Architectural Screening, Solar Shading & Balconies; and
Housebuilding Products & Ancillaries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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