Alumasc Reports Record FY25 Profits and 13% Revenue Growth Amid Market Challenges

Alumasc FY25 Results: Record Profits, Double‑Digit Growth, and Rising Exports

Alumasc has delivered another set of record numbers in a tough construction market. Revenue rose 13% to £113.4m with organic growth of 7%, and underlying profit before tax (UPBT) climbed 9% to £14.2m. That is market outperformance when UK construction grew just 0.5% in 2024, according to the CPA.

The story is one of innovation in sustainable building products, operational discipline, and a growing export footprint. There are moving parts – notably a slightly lower operating margin due to mix and heavier H2 exports – but the overall direction of travel remains positive.

Headline numbers investors should know

Metric	FY25	FY24	Change
Revenue	£113.4m	£100.7m	+13%
Underlying profit before tax (UPBT)	£14.2m	£13.0m	+9%
Statutory profit before tax	£12.3m	£11.7m	+5%
Underlying operating margin	13.7%	14.3%	-54 bps
Underlying EPS	29.9p	26.9p	+11%
Basic EPS	25.9p	24.3p	+7%
Total dividend per share	11.1p	10.75p	+3%
Net bank debt (year end)	£5.8m	£7.2m	Improved £1.5m

Definitions: “Underlying” excludes non-trading items such as acquired intangibles amortisation, restructuring and acquisition costs. It is a common alternative performance measure used to show the core trading picture.

Divisional performance: three records, three slightly different stories

Water Management: exports fill a softer UK, ARP helps scale

• Revenue £55.5m (FY24: £48.3m), +15%.
• Underlying operating profit £8.0m (FY24: £7.7m); margin 14.5% (FY24: 15.9%).

Export activity surged, led by accelerated call-offs at Chek Lap Kok Airport in Hong Kong. Gatic and Wade also shipped to projects including a NATO airport in Slovakia, Neom in Saudi Arabia, and Suape Port in Brazil. The ARP acquisition added £5.7m of revenue in its first full year and purchasing synergies have begun to drop through (£0.3m delivered to date, targeting c.£0.8m annualised by end FY26).

Negatives? The margin dipped due to a greater proportion of lower-margin overseas sales and UK project delays linked to the NPPF and Building Safety Act. On the positive side, access covers manufacturing has been relocated to Halstead, with c.£0.8m annual cost savings to come.

Building Envelope: innovation drives organic gains

• Revenue £41.8m (FY24: £37.6m), +11% all organic.
• Underlying operating profit £5.3m (FY24: £4.7m); margin 12.7% (FY24: 12.4%).

The division keeps leaning into sustainability: carbon-absorbing membranes, Bio Solar systems, and non-combustible insulation are helping win share, while recruitment of strong technical salespeople has paid off. A shift to working with large property owners also boosts visibility.

Housebuilding Products (Timloc): outgrowing a shrinking market

• Revenue £16.1m (FY24: £14.8m), +9% organic.
• Underlying operating profit £4.2m (FY24: £3.8m); standout margin 26.0% (FY24: 25.5%).

Against a sector backdrop where UK housebuilding starts fell 29% in 2024 (after -20% in 2023), Timloc’s 100% OTIF next-day service and recent product launches (e.g., Inventive Roof Tile Vents and Fire Rated Cavity Stop Socks) drove share gains and best-in-class profitability. Investment in automation and energy-efficient moulding kit is clearly showing up in margins.

Cash, balance sheet and dividends: quietly robust

• Underlying operating cash conversion was 106% (FY24: 122%).
• Free cash flow £6.6m (FY24: £8.3m) after £2.6m of capex.
• Net bank debt reduced to £5.8m; total IFRS 16 debt £12.7m.
• Banking headroom of £19.2m on the £25.0m revolving credit facility expiring August 2027, plus a £20.0m accordion and £4.0m overdrafts.
• Strong covenant headroom: net debt:EBITDA 0.35x (covenant <2.5x) and interest cover 16.9x (covenant >3.5x).

The dividend remains progressive. A final 7.6p is proposed, taking the year to 11.1p, covered 2.7 times by underlying EPS. That balance of reward and reinvestment looks sensible given the pipeline and headroom.

Sustainability and regulation: a structural tailwind

Alumasc is positioned squarely on the right side of regulation and climate trends. Over 80% of the portfolio addresses environmental drivers such as energy efficiency, water management and building safety. The Group cut Scope 1 and 2 plus business travel GHG emission intensity by 20% this year, taking the reduction to 76% since 2018. Scope 3 calculations and a net zero roadmap are well progressed and due later in the year. Environmental Product Declarations now cover 30% of Gatic and Wade products and 70% of Timloc’s range.

Why it matters: products that are specified by architects and required by regulation are inherently stickier and often pricier. That helps margins and resilience through the cycle.

What management is doing to lift margins back to 15–20%

• Operating efficiency: the new Halstead access covers facility and site consolidation should reduce annual operating costs by c.£0.8m.
• Procurement synergies from ARP targeting c.£0.8m annualised by end FY26.
• Product and mix: growth in higher-value, sustainability-led systems and UK volume recovery should improve mix over time.

The underlying operating margin slipped to 13.7% due to the export-heavy mix in Water Management. The actions above – plus a normalisation of mix if UK demand improves – are the levers to get back within the 15–20% target range.

Outlook: H2-weighted in FY26, but confidence intact

Management guides to another year of growth in FY26, with a second-half weighting due to the timing of overseas shipments. Supportive legislation on energy use, water management and building safety is a medium-term growth driver, and public-sector investment in healthcare, prisons and defence offers incremental opportunity. Capacity headroom across the Group means Alumasc can react quickly if demand accelerates.

My read: quality progress, a couple of watch-outs

Positives

• Record UPBT and revenue despite weak UK construction and housebuilding – real share gains.
• Exports up 45% to 13% of Group sales, broadening the growth engine.
• Cash discipline intact; net bank debt down to £5.8m with ample facility headroom.
• Pension now a £4.8m IAS 19 surplus; cash contributions fall to £0.7m p.a. from September 2025.
• Timloc’s 26.0% margin underlines pricing power and operational efficiency.

Considerations

• Operating margin dipped to 13.7% on export mix. Delivery of Halstead savings and ARP synergies is key to re-expand margins.
• Non-underlying costs of £1.9m included £1.5m restructuring – largely a one-off, but worth tracking for clean comps in FY26.
• Working capital was higher at year end due to Q4 shipment timing; management expects normalisation in Q1 FY26.

Overall, this is a high-quality update. Alumasc continues to do the hard yards on product innovation, service and efficiency, and it is showing up in market share and cash. With a progressive dividend, low gearing and tangible self-help levers, the Board’s optimism for FY26 looks justified. The key debate for the year ahead is margin trajectory as UK volumes recover and cost savings annualise.