Alumasc – continuing to outperform challenging markets, shares 340.5p, brokers 442p Target Price

Mark Watson-Mitchell - 24.10.2025

Ahead of the group’s AGM this morning Alumasc (LON:ALU), the premium sustainable products and solutions group, updated investors upon its performance for the first quarter of its current year.

It has reported continued volatility in its core UK residential and commercial markets; however, its Management is working hard upon its corporate recovery, supported by a healthy order book and a growing pipeline of opportunities.

The group has continued to enjoy encouraging demand on its exports side.

The Business

With its headquarters based in Burton Latimer, near Kettering in Northamptonshire, it is a sustainable building products, systems and solutions company.

The company's segments include Water Management, Building Envelope and Housebuilding Products.

The Water Management segment manufactures sustainable rainwater goods, drainage products and gas and airtight inspection covers.

Under the Alumasc Water Management Solutions banner, customers benefit from rainwater and drainage products that capture, retain and control the flow of rainwater inside and outside buildings from origination source to water course, sewer or ground.

The Building Envelope segment supplies a range of roofing products and also provides technical advice, service and environmental credentials.

While the Housebuilding Products segment manufactures products for housebuilding made from recycled and recyclable materials.

The group’s brands include Alumasc, Alumasc Skyline, Alumasc Rainwater, Harmer, Wade, Gatic, Roof-Pro, Alumasc Roofing, Blackdown and Timloc.

Almost 80% of Alumasc’s sales are driven by building regulations and specifications (architects and structural engineers) because of the performance characteristics offered.

Management Comment

CEO Paul Hooper stated that:

"While short-term macro-economic, fiscal and political headwinds have intensified during the first quarter of this new financial year, we continue to execute our strategy and grow our market share.

As previously announced, we expect an H2-weighted performance for FY25/26, and our order book and pipeline remains healthy.

We have demonstrated resilience throughout this period and continue to take proactive steps to grow our market share, enter adjacent markets, and reduce cost and improve efficiency, which will serve the Group well both now and in the future.

Alumasc's medium-term outlook remains very positive, and we remain well positioned to benefit significantly when the market recovers."

The Equity

There are some 36,133,558 shares in issue.

The larger holders include John McCall (11.24%), Philip Gwyn (7.57%), Hargreaves Lansdown (7.08%), Charley Stanley (5.05%), AXA Investment Managers (4.98%), Graham Hooper (2.93%), JP Morgan Asset Management (2.53%), and Maitland Asset Management (2.46%).

Broker’s View

Analyst David Buxton, at Cavendish Capital Markets, notes near-term uncertainties being seen before the Budget.

However, he is maintaining his recently updated Target Price for the shares of 442p (410p.).

“The shares remain at an 18% P/E discount to its peer group, while not immune to market volatility we believe the group is well positioned for recovery and attractively valued on a FY27E P/E of 10.4x.”

For the year to end-June 2026, his estimate is for group revenues of £113.4m (£113.4m) with adjusted pre-tax profits of £14.4m (£14.2m), with earnings of 29.1p (29.2p) and a fractionally improved dividend of 11.3p (11.1p) per share.

The 2027 year he estimates could show some £119.0m sales, £16.2m of profits, with 32.8p of earnings covering a dividend of 11.6p per share.

In My View

I really like the £122.6m-capitalised Alumasc group and its products and services, even though its is facing bumpy trading conditions, but then who is not?

I take the view that its shares, at 340.5p, continue to be underrated, trading on just 11.7 times current year and only 10.4 times prospective earnings for 2027.

(Profile 13.02.20 @ 116p set a Target Price of 145p*)

(Profile 08.06.20 @ 80p set a Target Price of 105p*)

(Profile 10.01.24 @ 183p set a Target Price of 222p*)

(Asterisks * denote that Target Prices have been achieved since Profile publication)