Alumasc Group Plc (LON:ALU) rose on Tuesday after announcing it expects a “strong” second half prompting an upgrade to ‘buy’ by house broker Peel Hunt.
The supplier of sustainable building products kept full-year guidance unchanged and expressed confidence over medium-term performance as its products address climate change goals.
Two-thirds of group revenues come from water and energy management while 75% of its products are sourced from recycled or recyclable materials.
In the six months to 31 December, revenue was 7% lower at £41mln as wet weather and Brexit uncertainty hit sales in the run-up to Christmas.
Cost savings kept underlying profit before tax flat at £2.3mln, although net cash tanked 25% to £4.2mln.
Statutory profits dropped to £2.1mln (£3.4mln) as the sale of the facades business washed through.
Peel Hunt upgrades
Analysts at Peel Hunt upgraded to ‘buy’ from ‘add’ and upped the target price to 140p from 120p as the AIM-listed firm kept its promise to deliver cost-cutting results.
“As expected, market conditions have not been easy, but full-year estimates are unchanged after these results,” analysts said in a note to clients.
“With robust numbers and a more encouraging UK construction outlook, we think the market will reward Alumasc with higher ratings.”
Shares advanced 5% to 112.4p on Tuesday at noon.