Shares in Alumasc group (LON:ALU) plunged more than 20 percent on Wednesday after the group warned of a slower than expected performance in the third quarter.
The UK-based supplier of building products warned that performance in the third quarter had weakened due to both a lack of orders and a decline in revenues.
The group attributed this to ‘broader economic and political uncertainties’ which had impacted the construction sector, alongside delays to public housing refurbishment contracts in Scotland and adverse weather conditions in recent weeks.
These issues impacted Levolux’s UK Solar Shading business, the Roofing & Walling division and the Gatic business within the Water Management division.
Nevertheless, Alumasc’s products and systems sold via building distribution channels remained unaffected, with revenue growth ‘remaining ahead of UK construction market growth at Alumasc Water Management Solutions, Rainclear and Timloc’.
Accordingly, the statement revealed that the Board’s anticipates that group revenues for the year ending 30 June 2018 to fall 4-5 per cent below previous expectations.
Consequentially, the group expects a reduction in underlying pre-tax profit before of around 15 per cent.
Looking forward, the statement continued:
“Whilst Alumasc is not immune to current market headwinds, there have been numerous positive strategic developments across the group over the last year that make Alumasc well positioned to continue its recent underlying growth trajectory over the medium to longer term.”
In particular, the company pointed towards the number of specifications and value of pre-order pipelines, which it said remained resilient, particularly Levolux’s newer businesses such as North American Solar Shading & Screening and UK Balconies & Balustrading.
The company, which specialises in sustainable building materials, is listed on the London Stock Exchange, and was once was once the biggest beer barrel manufacturer in the UK.
Shares in Alumasc are currently trading -31.05 percent as of 11.12 AM (GMT) as the market reacts to the trading update.