Building and engineering products company Alumasc shares took a hit after the firm admitted margin pressures had overshadowed revenue growth in the half year to December 31st and that full year results will be materially below previous expectations.
Group revenue during the period rose from £49.6m to £54.1m year-on-year, but underlying profit-before-tax fell to £1m, compared to £2.2m the previous year. Reported profit before tax dropped from £1.9m to £0.7m, hit by a rise in the cost of sales to support a recent surge in demand.
Earnings per share more than halved from 3.6p to 1.4p. The interim dividend was reduced from 3.25p to 1p per share.
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Chief Executive Paul Hooper said: "Management is taking all the actions necessary to restore profitability after a disappointing first half, albeit in a challenging environment, and we anticipate an improved performance for the remainder of the current year. At the same time, we are continuing to invest in developing growth opportunities across the business."
The firm added that it expects results to improve in the second half of the year.
The share price plunged 29.23% to 92.00p by 12:42.
NR
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