Alumasc CEO builds stake as shares tank

Paul Hooper, group Chief Executive at Alumasc, a building and engineering products company, has acquired over 37,000 shares in the firm on the same day the firm admitted that full year results will be materially below previous expectations.

The company attributed this to margin pressures had overshadowed revenue growth in the second half of 2011. The news sent the stock tumbling on Thursday, with shares trading at the 94p mark, down nearly 28% on last night's close of 130p.

Reported profit before tax for the half year dropped from £1.9m to £0.7m, hit by a rise in the cost of sales to support a recent surge in demand.

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Hooper, who was appointed Chief Executive in March 2003 having joined Alumasc as Group Managing Director in April 2001, purchased 37,856 shares at 92p each.

In a statement about the company's performance, he 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."

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