Lupus Capital reveals market contractions in several business areas

Door and window components supplier Lupus Capital has published a trading statement ahead of its financial year end on December 31st revealing market contractions in several business areas.

Door and window components supplier Lupus Capital has published a trading statement ahead of its financial year end on December 31st revealing market contractions in several business areas.

The AIM-listed company stated that group revenues to the end of November 2012 were up 5.9% on the previous year and broadly flat on a constant currency like-for-like basis excluding the effects of acquisitions.

In the UK, grouphomesafe saw an overall market contraction during 2012. Small increases in demand were observed for small ticket component products, however the group stated that there had been a continued significant decline in demand for larger ticket fabricator products and in the social housing sector.

Like-for-like revenues in the UK and operating profit before Peterlee property provision releases were expected be slightly lower than in 2011. The group said that it expected the market characteristics to continue into 2013 but said it was well-positioned to gain share in the UK with its newly expanded product range.

The group's Schlegel International business also saw difficult trading in the year-to-date and both revenues and operating profit for the year were expected to be lower than in 2011.

The planned closure of the group's Schlegel International Building Products business in Belgium will lead to an exceptional charge of approximately 1.5m euro being taken in the group's 2012 accounts with the majority of the associated cash outflows taking place in 2013.

Steady growth in North America

In North America, the group's Amesbury business saw steady growth throughout 2012 in both revenues and operating profit, with market demand at the start of the year assisted by mild weather conditions across much of the US.

Louis Eperjesi, Chief Executive Officer of Lupus Capital, said: "Lupus has had a satisfactory year's trading in line with expectations. Steady US growth has counter balanced tough market conditions in the UK and Europe.

"2013 will see further difficult markets, however the business is well positioned following the corporate activity we have undertaken during 2012; the group is now a clearly focused building products company and a leader in the supply of components to the door and window industry worldwide."

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021