Sustainable building products specialist, Alumasc has reported a decline in profits for the first half of FY2026, but a strong 27 per cent increase in its order book signals a promising recovery and improved performance in the second half of the year.
In its interim results for the six months to 31 December 2025, Alumasc saw operating profit fall to £4.4 million (HY1 2025: £7.2 million), with an underlying margin of 8.9 per cent, down from 14.1 per cent in the same period last year.
Its target remains 15-20 per cent.
Pre-tax profit for the period was £3.9 million (HY1 2025: £6.5 million), while group revenue dropped 12 per cent to £50.3 million (HY1 2025: £57.3 million).
The decline was said to be partly due to delays linked to the Building Safety Act and uncertainty surrounding the Autumn Budget.
The prior period had also benefitted from £5.5 million in revenue from a major Hong Kong airport project, which contributed only a small amount this half-year.
Division performance for HY1 2026:
- Water Management: Revenue £22.7 million and operating profit £1 million (HY1 2025: £29.6 million; £3.8 million).
- Building envelope: Revenue £19 million and operating profit: £1.9 million (HY1 2025: £20.2 million; £2.5 million).
- Housebuilding products: Revenue £8.7 million and operating profit: £2.2 million (HY1 2025: £7.5 million; £1.9 million).
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Despite the profit dip, Alumasc maintained its interim dividend of 3.5 pence per share, reflecting its strong financial position, while net assets increased to £42.4 million (HY1 2025: £37.4 million).
The company’s order book is also now 27 per cent higher than last year and 60 per cent higher than in 2023.
This, along with improving market conditions, has Alumasc optimistic for a positive second half of FY2026, driven by increasing opportunities both in the UK and overseas.
Paul Hooper, chief executive at Alumasc, who will retire in March with Pamela Bingham set to succeed him, said: “We continue to expect some market recovery later in 2026, with reducing interest rates and some easing of the Building Safety Act delays, although the timing of this is uncertain. In any event, we remain confident in our ability to outperform our markets, and have been encouraged by the improved order intake exiting Q2.
“With a strong order book at December 2025, together with a robust pipeline of future opportunities, we are confident in our ability to deliver a full year in line with the Board’s expectations.”
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