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Building products, systems and solutions group, Alumasc’s (LON: ALU) shares rose over 24% on Tuesday after the company said conditions in its markets have remained positive and the Group's trading performance has continued through to the end of the first half of the financial year, with a record profit for the period being achieved.
Its stock price is currently trading at 140p per share, up 23.35% having initially reached highs of 142p.
For the six months ended 31 December 2020, the company said its revenue increased 11% to £45.6 million, compared to the previous year while its profit before tax surged to £6 million from £2.3 million, a record for the period.
“All our divisions have contributed to the strong performance. While trading in the period includes an element of catch-up demand following the UK's first national lockdown and has benefitted from a range of Government support for the construction industry, our businesses have also been successful in winning market share and have been further supported by encouraging export sales,” Alumasc stated.
Looking ahead, Alumasc feels it is in a strong position, with the potential to deliver a strong result for the year.
However, they noted the continued risks of the ongoing pandemic and the UK’s free trade agreement with the EU as something they have an eye on.
“It is very encouraging to see Alumasc's achievement of a double-digit growth in revenues and also a double-digit return on sales and H1 has absolutely shown the great potential for the Group. In light of the businesses' momentum and strong cash conversion, a resumption of Alumasc's previous dividend policy is being considered by the Board,” said Paul Hooper, Alumasc’s CEO.
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