Shares in Alumasc Group PLC (AIM:ALU) fell 13% to 297.4p on Friday after the building products manufacturer warned of a tougher first quarter, with delays in UK construction projects dragging on revenue.
The company said market conditions in its core UK residential and commercial sectors had become “more challenging” in recent months, citing subdued demand and growing uncertainty ahead of the government’s Autumn Budget.
While its Housebuilding Products division maintained momentum, project delays in the Building Envelope and Water Management units constrained domestic sales despite a strong order book.
Chief executive Paul Hooper said the group was facing “intensified macro-economic, fiscal and political headwinds” but continued to gain market share and pursue efficiency measures to offset short-term weakness.
Alumasc added that export demand remained encouraging, though international revenue is expected to be lower this year following completion of a major Hong Kong airport project in 2025.
The group said several new overseas opportunities were in early stages and could benefit future periods.
It reiterated that trading this financial year will be weighted toward the second half and described its medium-term prospects as “very positive”, supported by a strong balance sheet and capacity to benefit from any recovery in UK construction activity.