Alumasc Group Plc (LON:ALU) shares started Friday sharply on the back-foot as an underperformance in the group’s Levolux unit triggered a profit warning.
The company, in a statement, said that Levolux - an architectural screening, solar shading and balconies business - continued to experience construction project delays.
Margins in the ‘embryonic’ balconies business were below expectations.
Consequentially, Alumasc told investors it anticipates group full year underlying profit some 10-15% below previous expectations.
The company additionally said that it has in recent months moved to change and restructure the Levolux management team.
Alumasc noted that Levolux represented around 20% of the group’s revenue, whereas its ‘roofing & water management and housebuilding & ancillaries divisions’ make up the other 80% and those businesses “continue to grow well ahead of the UK construction market”.
It pledged to recommend to shareholders that the group’s 7.35p per share dividend is retained.
Stockbroker Peel Hunt, in a note, said: “While the bulk of the group’s businesses have performed well in the second half of the group’s financial year, Levolux has continued to struggle due to project delays.
“As a result, the first half losses in that business will be repeated. We had expected the business to bounce back into the black.”
In Friday’s deals, Alumasc shares were down 8p or 7.77% changing hands at 95p.