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(Sharecast News) - Alumasc reported modest revenue growth in its third quarter on Thursday, but flagged a more cautious outlook for the remainder of the year, citing geopolitical disruption and delays to major projects.
For the three months through March, revenues were 2% ahead of the prior year, with the average monthly run-rate 8% higher than in the first half.
Order intake momentum remained strong, with the order book 28% higher than a year earlier and 8% above December levels.
The Building Envelope and Housebuilding Products divisions delivered revenue growth in line with expectations and continued to outperform their markets, while the Water Management division saw revenues fall short due to ongoing project delays despite a growing order book.
The group said performance in the quarter was slightly below expectations, reflecting the impact of events in the Middle East since late February, which contributed to slower decision-making and delays to large projects.
It added that shipments to the Chek Lap Kok airport project resumed during the period, although timing remains uncertain, with some of the 1.3m remaining order balance potentially slipping into the next financial year.
Deliveries for the first phase of the Changi Airport project in Singapore were now not expected to begin in the current year.
Looking ahead, Alumasc said it continued to see a healthy pipeline of opportunities but noted that conditions in key commercial markets remain subdued due to affordability pressures, planning constraints and fragile confidence, which have been further exacerbated by geopolitical and macroeconomic instability.
The board said it now expected full-year underlying pre-tax profit of around 11m.
It said it retained a strong balance sheet, with year-end net bank debt leverage expected to be about 0.4x, adding that it was continuing to progress strategic initiatives under new chief executive Pamela Bingham, particularly targeting performance improvements in the Water Management division.
"Market conditions have undoubtedly become more challenging since we published our interim results on 3 February, with increasing macroeconomic and geopolitical uncertainty weighing on decision-making and project timelines across our end markets, driven by events in the Middle East," Bingham said.
"Against this backdrop, the board is rightly taking a cautious view of the outlook over the remainder of 2026.
"That said, I see significant scope to drive performance through self-help initiatives, especially in our Water Management division.
"We are maintaining momentum in order intake, growing our order book year on year, and continuing to take share in regulation- and specification-led markets where demand for high-performance and sustainable solutions remains resilient."
At 1151 BST, shares in the Alumasc Group were down 14.81% at 221.5p.
Reporting by Josh White for Sharecast.com.
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