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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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."
House prices are falling in London but how does it compare to the rest of the UK?
Advice The capital remains the most expensive part of the UK to buy a property, but it isn’t being as badly hit by the housing market slump. Where are London house prices heading?
By Marc Shoffman Published
Will a Santa Rally provide festive cheer for investors this year?
News Equities often get a seasonal boost during December - will there be a Santa Rally in 2023?
By Marc Shoffman Published