Q4 2026 Alumasc Group PLC Earnings Call

September 16, 2026

Speaker #1: Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and may be submitted at any time via the Q&A tab, situated in the right-hand corner of your screen.

Operator: Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to the management team. Vijay, good afternoon, sir.

Speaker #1: Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it is appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the management team, Vijay. Good afternoon, sir.

Speaker #2: Oh, thank you very much. And, to re- sorry, Simon, Grace, and my own welcome. So the ones just given by IMC, thank you, IMC, for hosting today.

Vijay Thakrar: Oh, thank you very much. To reiterate, Simon Dray and my own welcome to the one just given by Investor Meet Company. Thank you, Investor Meet Company, for hosting today. We are delighted that you have all joined us to talk about Alumasc, to hear about Alumasc results to 30 June 2026. Those of you who know us and have attended these before will recognize Simon Dray, our CFO. You probably will not recognize me. I am the interim executive chair. I am here because, as you know, from our RNS at the end of August, we terminated the employment of our CEO on that date, and I was asked by the board to step in on an interim basis.

Vijay Thakrar: Oh, thank you very much. To reiterate, Simon Dray and my own welcome to the one just given by IMC. Thank you, Investor Meet Company, for hosting today. We are delighted that you have all joined us to talk about Alumasc, to hear about Alumasc results to 30 June 2026. Those of you who know us and have attended these before will recognize Simon Dray, our CFO. You probably will not recognize me. I am the interim executive chair. I am here because, as you know, from our RNS at the end of August, we terminated the employment of our CEO on that date, and I was asked by the board to step in on an interim basis.

Speaker #2: And we're delighted that you've all joined us to talk about Alimask's— to hear about Alimask's results to 30 June, 2026. Those of you who know us, and have attended these before will recognize Simon Gray, our CFO.

Speaker #2: You probably won't recognize me; I'm the interim executive chair. And I'm here because, as you know, from our RNS at the end of August, that we terminated the employment of our CEO on that date, and I was asked by the board to step in on an interim basis.

Speaker #2: I'll say more about how we're running the business, and about the management team that's running the business, in one of our slides later. But I just wanted to reassure everybody right at the beginning that we have a very strong executive and wider management team that is running the business.

Vijay Thakrar: I will say more about how we are running the business, the management team that is running the business in one of our slides later, but I just wanted to reassure everybody right at the beginning that we have a very strong executive and wider management team that is running the business and in fact, the business is doing quite well for the first 2 months of the year to date. We will say more about that later as well. This afternoon, what we would like to cover on the next slide is, just go back one slide. Thank you, Simon. Just one more. One more. We will introduce Alumasc, because I am conscious some of you will be hearing about Alumasc for the first time.

Speaker #2: And in fact, the business is doing quite well for the first 2 months of the year to date. And we'll say more about that later as well.

Speaker #2: So this afternoon, what we'd like to cover on the next slide is just— just go back one slide, thank you, Simon. Just one more.

Speaker #2: One more. So we're going to introduce Alimask because I'm conscious some of you will be hearing about Alimask for the first time. And I'll also give you some very high-level highlights of what happened in the year that's just gone.

Vijay Thakrar: I will also give you some very high-level highlights of what happened in the year that has just gone and an overview of some of our opportunities and business, including that management structure that I have mentioned. Simon will then come in and provide a more detailed review of our financials for the year that just went and a bit more detail on each of our business units, our divisions. We will then talk about our strategy and what we are doing to deliver our strategy before concluding with our outlook for what is our financial year 2027 to 30 June 2027. Thank you, Simon. For those of you who do not know us, we have 3 divisions. One is Water Management. That produces very basic metal rainwater goods, so gutters and downpipes, but also includes products like fascias and soffits that go into the commercial built environment.

Speaker #2: And, you know, an overview of some of our opportunities and business, including that management structure that I've mentioned. Simon, although come in and provide a more detailed review of our financials for the year that just went, and a bit more detail on each of our business units, our divisions.

Speaker #2: We'll then talk about our strategy and what we're doing to deliver our strategy, before concluding with our outlook for what is our financial year 27 to 30 June 27.

Speaker #2: Thank you, Simon. So for those of you who don't know us, we have 3 divisions. One is Water Management. That produces a very basic metal rainwater goods— so gutters and downpipes— but also includes products like faciers and soffits that go into the commercial built environment.

Speaker #2: The second division is Building Envelope. Which is mainly supplying commercial roofing— roofing to the commercial sector— focused very much on environmental efficiency and helping urban diversity in the urban built environment.

Vijay Thakrar: The second division is Building Envelope, which is mainly supplying commercial roofing to the commercial sector, focused very much on environmental efficiency, and helping urban diversity in the urban built environment. The third division, Housebuilding Products, is focused on, as it suggests, residential housing products and focused on energy efficiency in the home, airtightness, and management of ventilation. The common theme across all of our three divisions is that we produce products that are focused on environmental sustainability and meeting or exceeding the increasing level of building regulations to help combat climate change, whether that is flood risk and Water Management, urban biodiversity in Building Envelope, or energy efficiency in Housebuilding Products. More than 80% of our products that we make and sell meet or exceed these environmental and building regulations. So that is a bit about our divisions. Simon, did you want to just cover the next slide?

Speaker #2: And the third division, House Building Products, is focused on, as it suggests, residential housing, products focused on energy efficiency in the home, air tightness, and management of ventilation.

Speaker #2: The common theme across all of our three divisions is they're—we produce products that are focused on environmental sustainability and meeting or exceeding the increasing level of building regulations to help combat climate change—whether that's flood risk in Water Management, urban biodiversity in Building Envelope, or energy efficiency in Housebuilding Products.

Speaker #2: And more than 80% of our products that we make and sell are meet or exceed these environmental and building regulations. So that's a bit about our division.

Speaker #2: Simon, did you want to just cover the next slide?

Speaker #3: Thank you, Vijay. We've spoken about the strategic environmental growth markets, so I don't need to cover that. But our products are high quality, which means the higher initial cost is offset by lower maintenance and a longer lifespan.

Simon Dray: Thank you, Vijay. You have spoken about the strategic environmental growth markets, so I do not need to cover that. Our products are high quality, which means higher initial cost is offset by lower maintenance and longer lifespan. We do this using energy and resource-efficient materials, maximizing recycled and recyclable content. Environmental performance declarations are one way that we can demonstrate this to customers. We now have EPD certified to 34% of our revenue.

Speaker #3: And we do this using energy and resource efficient materials. Maximizing recycled and recyclable content and environmental performance declarations are one way that we can demonstrate this to customers.

Speaker #3: We now have EPD certified to 34% of our revenue.

Speaker #2: Thank you, Simon. So what happened in the 30 June 2026? Well, actually, the market backdrop was very challenging. As you'll see from a slide, we've got later construction products association, the CPA estimates that construction outputs in the UK fell— is falling by 3 to 4% this year.

Vijay Thakrar: Thank you, Simon. So what happened in the year to 30 June 2026? Well, actually, the market backdrop was very challenging. As you will see from a slide we have got later, Construction Products Association, the CPA, estimates that construction output in the UK is falling by 3% to 4% this year, and private housing starts declined by 12%. Our revenues went down by 6%, from GBP 113 million to GBP 107 million. But within that, there were some real bright spots. Firstly, Housebuilding Products. The revenue there grew by 16% compared to that 12% reduction in private housing starts compared to the previous year. In our Building Envelope roofing division, the revenues was level with the level we achieved in 2025, despite overall activity dropping by 3% to 4%. So both those divisions outperformed the market and have taken market share. What is their secret?

Speaker #2: And private housing starts to decline by 12%. Our revenues went down by 6%, from £113 million to £107 million. But within that, there were some real blank spots.

Speaker #2: Firstly, house building products: the revenue there grew by 16% compared to that 12% reduction in private housing starts compared to the previous year. In our Building Envelope roofing division, the revenue was level with the year we— with the level we achieved in 2025, despite overall activity dropping by 3 to 4%.

Speaker #2: So both those divisions outperformed the market and have taken market share. What is their secret? Well, their secret is innovation, making sure they develop environmentally efficient products, which is what customers demand.

Vijay Thakrar: Well, their secret is innovation, making sure they develop environmentally efficient products, which is what customers demand and the regulations demand. Having great customer relationships and understanding what customers want, and then providing really fantastic service. Our Housebuilding Products business, Timloc, which is a brand, has next day delivery and consistently achieves 100% OTIF, i.e., 100% on time in full delivery. It is those sort of factors that have enabled those two businesses to take market share year on year. The disappointment was in Water Management. Overall decline of 16%, although 4%, if you exclude a large contract in Hong Kong, what we call the CLK contract in Hong Kong in the previous year. But nonetheless, disappointing, although that division does represent the biggest opportunity for us in terms of improvement, and we will say more about that later in this presentation.

Speaker #2: And the regulations demand. Having great customer relationships and understanding what customers want, and then providing really fantastic service house building products business. Tim Locke, which is the brand, has next-day delivery and consistently achieves 100% OTIF, i.e., 100% on-time in full delivery.

Speaker #2: And it's those sort of factors that have enabled those 2 businesses to take market share year on year. The disappointment was in water management, overall 6th decline of 16%, although 4% if you exclude a large contract in Hong Kong, what we call the CLK contract.

Speaker #2: In Hong Kong, in the previous year. But nonetheless, disappointing although that division does represent the biggest opportunity for us in terms of improvement, and we will say more about that later in this presentation.

Speaker #2: As a result of all of that, our underlying profit before tax changed from £14 million to £10 million. However, again, a bright spot was our operating cash conversion, which was more than 100%, despite us having to invest in more inventory in the year due to the Middle East conflict, to make sure that we didn't run out of inventory and stock for customers.

Vijay Thakrar: As a result of all of that, our underlying profit before tax changed from GBP 14 million to GBP 10 million. However, the bright spot was our operating cash conversion, which is more than 100%, despite us having to invest in more inventory in the year due to the Middle East conflict, to make sure that we did not run out of inventory and stock for customers. Simon takes a lot of credit for driving that. Simon and I also work very closely with our defined benefit pension scheme trustees, to help manage the pension scheme position, in terms of their investment strategy and management of costs with our advisers. The surplus in that scheme on an accounting basis increased to almost GBP 6 million compared to GBP 5 million last year. So that is positive. The other positive is that our bank facilities, we have reviewed those.

Speaker #2: And Simon takes a lot of credit for driving that. Simon and I also work very closely with our defined benefit pension scheme trustees to help manage the pension scheme position, in terms of their investment strategy and management of costs with their advisors.

Speaker #2: The surplus in that scheme, on an accounting basis, increased to almost £6 million, compared to £5 million last year. So that's positive. The other positive is that our bank facilities—we've renewed those.

Vijay Thakrar: Simon has reviewed those in the year, so thank you, Simon. He increased that from GBP 25 million to GBP 30 million. We also have a GBP 20 million accordion facility, which gives us plenty of firepower to go and invest in our business organically, but also to make acquisitions where we find the right ones. Our approach to this is always to only do this on a disciplined basis, and only buy businesses where we can add value to them, but very importantly, that they can add value to our shareholders. While he was doing that, he also managed to reduce the margin on our borrowing facility by 20 basis points, which is some achievement in today's market. As I say, tough backdrop, disappointing in Water Management, but actually some real bright spots, so we are confident about the future.

Speaker #2: Simon has renewed those in the year. So thank you, Simon. And increased that from 25 to 30 million, we also have a 20 million accordion facility which gives us plenty of firepower to go and invest in our business organically, but also to make acquisitions where we find the right ones.

Speaker #2: And our approach to this is always to only do this on discipline basis and only by businesses where we can add value to them, but very importantly, that they can add value to our shareholders.

Speaker #2: And while he was doing that, he also managed to reduce the margin on our borrowing facility by 20 basis points, which is some achievement in today's market.

Speaker #2: So as I say, tough backdrop, disappointing in water management, but actually some real bright spots. So we're confident about the future. As a result, we've held the dividend, provided our shareholders approve that, at 11.1 be the same as last year, which was a year.

Vijay Thakrar: As a result, we have held the dividend, provided our shareholders approve that, at 11.1p, the same as last year, which was a record level we set last year. Moving on to the next slide. In terms of our strategic priorities, what we want to do is outperform the market in all of our divisions. I have mentioned already that we bring a lot of focus in helping our Water Management division do that, to match what our other two divisions have been doing, both by growing volumes, but also margins by operational efficiency. We will talk more about that later on. We will continue to invest in our well-performing businesses, and Simon will talk about some of the investments we have already made very recently in our housebuilding products division, as an example.

Speaker #2: Moving on to the next slide, in terms of our strategic priorities, what we want to do is outperform the market in all of our divisions.

Speaker #2: So I've mentioned already that we're putting a lot of focus in helping our water management division do that, to match what our other 2 divisions have been doing.

Speaker #2: Both by growing volumes, but also margins, through operational efficiency. And we'll talk more about that later on. We'll continue to invest in our well-performing businesses, and Simon will talk about some of the investments we've already made very recently in our house building products division, as an example.

Speaker #2: And as I said earlier, we will continue to look at acquisitions, but follow that disciplined approach that I mentioned. I mentioned the leadership changes right at the outset, and there's a slide coming up to show what we're actually doing in the business.

Vijay Thakrar: As I said earlier, we will continue to look at acquisitions, but follow that disciplined approach that I mentioned. I mentioned the leadership changes right at the outset on this slide coming up to show what we are actually doing in the business. Looking forward, and we will say more about this later on as well, our June order book at the end of the financial year closed up 49% compared to a year ago. Some of that order book has started to convert into sales as a result, and the revenues for the first 2 months of this financial year are 5% ahead of last year. Those of you who know us pretty well will know that we won a contract at Changi Airport in Singapore a few months ago, which we let our shareholders know about.

Speaker #2: Looking forward, I will say more about this later on as well. Our June order book at the end of the financial year closed up 49% compared to a year ago.

Speaker #2: Some of that order book has started to convert into sales. As a result, the revenues of the first 2 months of this financial year are 5% ahead of last year.

Speaker #2: And some of you who— those of you who know us pretty well will know that we won a contract at Changi Airport in Singapore a few months ago, which we let our shareholders know about.

Speaker #2: And deliveries on that should start going out later in this calendar year. So reasonable outlook going forward. I mentioned a couple of times that I'll come back to this slide.

Vijay Thakrar: Deliveries on that should start going out later in this calendar year. So, reasonable outlook going forward. I mentioned a couple of times, that I will come back to this slide. It shows how we are running the business at the moment and how all of our executive team, Simon Dray, Gilbert Jackson, and Michael Leaf, are contributing to helping drive the business forward. Gilbert Jackson, who runs the roofing or building envelope division, continues with that responsibility. He is also, however, overseeing our Gatic and Wade business, which are the brands there. The reason Gilbert has been asked to do that is that in our roofing and envelope business, a lot of the products are specified by people like architects, designers, civil engineers. Actually, the Gatic and Wade business has a similar go-to-market approach, so he can help support that business.

Speaker #2: It's— it shows how we're running the business at the moment, and how all of our executive team— Simon, Gilbert, and Michael— are contributing to helping drive the business forward.

Speaker #2: Sir Gilbert Jackson, who runs the roofing or building envelope division, continues with that responsibility. He's also— however— overseeing our covers and drainage business, also known as Gatingham Wade, which are the brands there.

Speaker #2: The reason Gilbert has been asked to do that is that in our roofing and envelope business, a lot of the products are specified by people like our architects, designers, civil engineers.

Speaker #2: And actually, the covers and drainage business has a similar go-to-market approach. So he can help support that business. And Michael Leaf, who runs our Tim Lock house building products business, has kindly agreed to support the rainwater products business unit within water management.

Vijay Thakrar: Michael Leaf, who runs our Timloc housebuilding products business, has kindly agreed to support the Rainwater Products business unit within Water Management, what we call the AWMS, Alumasc Water Management Solutions, based near Kettering. ARP, the Rainwater Products business, which is similar to that one that we bought three years ago, based in Leicester, 30 miles away, and we have also got a small distribution business called Rainclear there. Michael has been fantastic at driving operational efficiency in the Timloc manufacturing business and is sharing that expertise, that experience, with our Rainwater Products business. However, we have also put in place business unit MDs at these two units.

Speaker #2: What we call their AWMS, Ali Mask Water Management Systems, based near Kettering. ARP, the rainwater products business, which is similar to that one, that we bought 3 years ago, based in Leicester, 30 miles away, and we also got a small distribution business called Lorraine Clear there.

Speaker #2: And Michael has been fantastic at driving operational efficiency in the Tim Lock manufacturing business. And he's helping— he's sharing that expertise, that experience with our rainwater products business.

Speaker #2: However, also put in place business unit MDs at these 2 units. As you will see, on the bottom right there in the covers and drainage business, a chap called who used to work for a competitor some years ago, joined us to help drive that business forward.

Vijay Thakrar: As you will see on the bottom right there, in the Gatic and Wade business, a chap called Peter Blanchard, who used to work for a competitor some years ago, joined us to help drive that business forward, and he is settling in really well. We are very pleased there. In Rainwater Products, which is where the operational efficiency opportunities are greatest, we have had a chap called Mick Love, who has joined us actually this week, working closely with Michael. Just wanted to reassure everybody that the business is in good hands, being well run, and of course, there are teams within each of those three divisions who continue to drive the business forward on a day-to-day basis. They have asked for stability, which this team is providing, and continuity, which also helps them then do their jobs to the best of their ability and provide a great service to our customers.

Speaker #2: And he's settling in really well. We're very pleased there. And in rainwater products, which is where the operational efficiency opportunities are greatest, we've had a chap called Mick Love, who's joined us actually this week, working closely with Michael.

Speaker #2: So just wanted to reassure everybody that the business is in good hands. Being well run. And of course, there are teams within each of those 3 divisions who continue to drive the business forward on a day-to-day basis.

Speaker #2: They've asked for stability, which this team is providing, and continuity, which also helps them do their job to the best of their ability and provide great service to our customers.

Speaker #2: So that's a bit about the team. Just going to say a couple of words before the market backdrop. There are 3 points really that are sort of in the main subheadings on the left.

Vijay Thakrar: That is a bit about the team. Just going to say a couple of words before handing over to Simon Dray on the market backdrop. There are three points really that are in the main subheadings on the left. The first one actually is best illustrated by looking at the charts on the right. This is the CPA data which I referred to earlier. Overall construction declining by 3% to 4% this year. Overall UK private housing starts declining by 12%. I should say, let us be positive about it, forecast to increase next year, which I think will then give us some tailwinds. As I say, despite those statistics, two of our divisions outperformed the market this year, which we are pleased with. We want the third one, Water Management, to do the same for next year.

Speaker #2: The first one, actually, is best illustrated by looking at the charts on the right. This is the CPA data, which I referred to earlier.

Speaker #2: Overall construction declining by 3 to 4% this year. Overall UK private housing stats declining by 12%. But— or— and I should say, let's be positive about it.

Speaker #2: Forecast of increase next year, which I think will then give us some tailwinds. As I say, despite those statistics, 2 of our divisions outperform the market this year, which we're pleased with.

Speaker #2: We want the 3rd one, Water Management, to do the same for next year. The 2nd bullet— the 2nd main point on the left, though, is that the affordability and stability in the economy is going to be critical to this.

Vijay Thakrar: The second bullet, the second main point on the left, though, is that the affordability and stability in the economy is going to be critical to this. A lot of this is outside the control of John Healey and the Government, but they can help with that in the October budget. When I say outside the control of those individuals or the Government, obviously the Middle East, the situation, the oil price hike, and the potential for interest rates, therefore, to rise in the UK could have an impact on both residential and the commercial market in the UK. So we will obviously deal with that. Our job is to go and take market share from our competitors. Two of our divisions have done that. We want the third division to start doing the same.

Speaker #2: A lot of this is outside the control of John Healey and the government, but they can help with that in the October budget. When I say outside the control of those individuals, the government, obviously the Middle East situation, the oil price hike, and the potential for interest rates therefore to rise in the UK could have an impact on both residential and the commercial market in the UK.

Speaker #2: So we will obviously deal with that. Our job is to go and take market share from our competitors. 2 of our divisions have done that.

Speaker #2: We want the 3rd division to start doing the same. Whatever happens there in the short to medium term, the long-term structural drivers for Ali Mask, the final point on the left there, remains very strong because there's a lot of legislation around environmental efficiency in the built environment, our products, more than 80% are designed to meet or exceed those requirements.

Vijay Thakrar: Whatever happens there in the short to medium term, the long-term structural drivers for Alumasc, the final point on the left there, remains very strong because there is a bill of legislation around environmental efficiency in the built environment. Our products, more than 80%, are designed to meet or exceed those requirements, and help our customers to meet those requirements. Those of you who are familiar with TCFD, the Task Force on Climate-related Financial Disclosures, know that every significant company has to report on that. Our products help customers to do that. So the longer-term tailwinds for Alumasc are very positive, and we remain confident in our strategy. Thanks.

Speaker #2: And help our customers to meet those requirements. Those of you who are familiar with TCFD, the Task Force on Climate and Financial Disclosures, know that every significant company has to report on that.

Speaker #2: Our products help customers to do that. So the longer-term tailwinds for Ali Mask are very positive and we remain confident in our strategy. Thanks.

Speaker #1: Thank you, BJ. I'll take you through some financial slides before we move on to the divisions. As BJ mentioned, our revenues declined by 6% year on year.

Simon Dray: Thank you, Vijay. I will take you through some financial slides before we move on to the divisions. As Vijay mentioned, our revenue declined by 6% year on year. A large part of that relates to the Chek Lap Kok Airport project. Excluding that, revenues were broadly flat, with a 2% decline in UK revenues offset by 36% growth in non-Chek Lap Kok Airport export sales, which we were pleased to see given the investments we have made in overseas technical sales resource. However, this volume reduction and a smaller mix variance has impacted margins. Like many manufacturing business, we have a fairly high contribution margin. That is revenues less variable cost of sales. So gross margins were 150 basis points lower, 36.4%, and our operating margin fell from 13.7% last year to 10.5%. As a result, underlying profit before tax was GBP 10 million, compared to GBP 14.2 million last year.

Speaker #1: A large part of that relates to the Chetlack Cock Airport project. Excluding that, revenues are broadly flat, with a 2% decline in UK revenues offset by 36% growth in non-Chetlack Cock Airport export sales, which we were pleased to see given the investments we've made in overseas technical sales resource.

Speaker #1: However, this volume reduction and a smaller mixed variance have impacted margins. Like many manufacturing businesses, we have a fairly high contribution margin—that's revenues less variable costs and sales.

Speaker #1: So, gross margins were 150 basis points lower at 36.4%. Our operating margin fell from 13.7% last year to 10.5%. As a result, underlying profit before tax was £10 million, compared to £14.2 million last year.

Speaker #1: The board proposes, however, to keep the final dividend level with the prior year at 7.6p, with a total distribution for the year of 11.1p.

Simon Dray: The board proposes, however, to keep the final dividend level with the prior year at 7.6p, with a total distribution for the year of 11.1p, same as the prior year. We are confident that future earnings growth will quickly restore the dividend cover back to our medium-term target range at 2.5 to 3 times. On our profit bridge and income statement bridge three things I would pull out here. Firstly, we were able to introduce some targeted sales price increases that will recover cost price increases that we saw, both raw material price increases and employee cost rises. As I mentioned before, that 8.1 million, sorry, volume reduction was responsible for a GBP 3.6 million profit reduction, which represents a drop through a contribution margin rate of around 44%, which is fairly typical for Alumasc Group.

Speaker #1: Same as the prior year. We're confident that future earnings growth will quickly restore the dividend cover back to our medium-term target range of 2.5 to 3 times.

Speaker #1: On our profit bridge and income statement bridge, 3 things I would pull out here. Firstly, we were able to introduce some targeted sales price increases that will recovered cost price increases that we saw, both raw material price increases and employee cost rises.

Speaker #1: As I mentioned before, that 8.4 million— 8.1 million, sorry— volume reduction was responsible for a 3.6 million profit reduction. Which represents a drop through a contribution margin rate of around 44%, which is fairly typical for Ali Mask Group.

Speaker #1: And finally, we have a small adverse product mixed variance, which was partially offset by some cost efficiencies the majority of which will benefit from next year.

Simon Dray: Finally, we have a small adverse product mix variance, which is partially offset by some cost efficiencies, the majority of which will benefit from next year. Our cash conversion, the ratio of operating cash generation to operating profit, was above 100%, despite some inventory investment to mitigate cost and supply issues arising from the Middle East conflict, and also the timing of some shipments into the Chek Lap Kok project around year-end, where we carried them through as trade receivables and expect to collect them in the early part of this year. Our payments into the pension scheme were GBP 800,000, compared to GBP 1.2 million last year, reflecting the reduction agreed with the trustees to GBP 700,000 per annum from September 2025. Our cash flows meant we were able to continue to invest future growth. The capital expenditure of GBP 2.6 million was level with the prior year.

Speaker #1: Our cash conversion, the ratio of operating cash generation to operating profit, was above 100% despite some inventory investment to mitigate cost and supply issues, arising from the Middle East conflict.

Speaker #1: And also the timing of some shipments into the Chetlack Cock project around year-end, where we carried them through as trade receivables and expected to collect them in the early part of this year.

Speaker #1: Our payments into the pension scheme were 800,000 pounds, compared to 1.2 million pounds last year, reflecting the reduction agreed with the trustees. To 700,000 pounds per annum from September 2025.

Speaker #1: And our cash flow meant we were able to continue to invest in future growth. The capital expenditure of £2.6 million was level with the prior year.

Speaker #1: Some of the bigger ticket items were two further injection molding machines at the House Building Products site in Timloc—in Gould, apologies—to add capacity and support product development.

Simon Dray: Some of the bigger ticket items were two further injection molding machines at house building product site in Timloc, in Goole, apologies, to add capacity and support product development, and a further CNC machining center at Water Management in Halstead to in-house some component manufacturing to reduce product costs and inventory levels. Our balance sheet. First point is the return on investment, despite the dip in profits, remained above our weighted average cost of capital, which we estimate is about 13%. Vijay has already spoken to the bank facility refinance, so I won't cover that one again. Final point I'd like to make is our pension de-risking continued. Our accounting surplus under IAS 19 increased to GBP 5.9 million. We have two targets in mind. Firstly, the self-sufficient target, where that's the point the pension scheme is able to manage itself without further contributions from the company.

Speaker #1: And a further CNC machining center at Water Management in Halsted, to in-house some component manufacturing. To reduce product costs and inventory loss. Our balance sheet first point is the return on investment, despite the dip in profits remained above our weighted average cost of capital, which we estimated about 13%.

Speaker #1: BJ has already spoken to the bank facility refinance, so I won't cover that one again. Final point that I'd like to make is our pension derisking continued.

Speaker #1: Our accounting surplus under IAS 19 increased to 5.9 million. We had 2 targets in mind. Firstly, the self-sufficient target, where at that point the pension scheme is able to manage itself without further contributions from the company.

Speaker #1: There's probably about a 1 to 2 million pound deficit against that funding target. And we expect to get there over the next few years.

Simon Dray: There's probably about a GBP 1 to GBP 2 million deficit against that funding target, and we expect to get there over the next few years. However, we also have one eye on our buyout target, which at the end of June would probably require a further contribution of around, somewhere around GBP 7 to GBP 9 million. The buyout, it represents the amount that we would need to pay to an insurance company to take the scheme off our hands and remains the gold standard for pension scheme de-risking. We may, once we reach the self-sufficiency target, keep some further contributions going into the scheme to take advantage of any opportunities to fully or partially buy parts of the scheme out. Turning to the divisional review. Water Management was the chief disappointment this year.

Speaker #1: However, we also have one eye on our buyout target, was probably require a further contribution of around somewhere around 7 to 9 million pounds.

Speaker #1: The buyout, it represents the amount that we would need to pay to an insurance company to take the scheme off our hands and remains the gold standard for pension scheme derisking.

Speaker #1: We may, once we reach the self-sufficiency target, keep some further contributions going into the scheme, to take advantage of any opportunities to fully or partially buy parts of the scheme out.

Speaker #1: Turning to the divisional review, Water Management was the chief disappointment this year. Revenues declined by 8.9 million, 6.8 million of which related to the year-on-year drop in contribution from Chetlack Cock Airports.

Simon Dray: Revenues declined by GBP 8.9 million, GBP 6.8 million of which related to the year-on-year drop in contribution from Chek Lap Kok Airport. Excluding that, the decline was 4%, with planning constraints, affordability concerns, and fragile confidence levels pushing UK revenues 6% lower. This was partially offset by an increase in non-Chek Lap Kok exports following the investments made in local technical sales resource. Underlying divisional operating profits fell to GBP 2.5 million, reflecting the lower volumes and the division's high operational gearing. The division's focused on self-help. Actions were taken to reduce costs with a further GBP 900,000 benefit expected to hit the bottom line next year, FY27. We're also focusing on improving inquiry-to-order conversion rates and lead times. Supply chain rationalization opportunities are underway, and we're looking to optimize manufacturing processes, particularly between our rainwater product sites in Leicester and Kettering.

Speaker #1: Excluding that, the decline was 4%, with planning constraints affordability concerns and fragile confidence levels pushing UK revenues 6% lower. This was partially offset by an increase in following in depth the investments made in local technical sales resource.

Speaker #1: Underlying divisional operating profit fell to 2.5 million, reflecting the lower volume and the division's high operational gearing. The division's focused on self-help. Actions were taken to reduce costs, with a further 900,000 pound benefit expected to hit the bottom line next year, FY27.

Speaker #1: We're also focusing on improving inquiry-to-order conversion rates and lead times. Supply chain rationalization opportunities are underway, and we're looking to optimize manufacturing processes, particularly between our rainwater product sites in Leicester and Kettering.

Speaker #1: However, the order book at the end of August was 68% higher than a year ago. Providing some early signs of improvement. This includes the 2 million pound Changi Airport project, one last year where deliveries are expected to start in the first half of FY27.

Simon Dray: However, the order book at the end of August was 68% higher than a year ago, providing some early signs of improvement. This includes the GBP 2 million Changi Airport project, won last year, where deliveries are expected to start in the H1 of FY27. Subsequent phases of that project are potentially worth a further GBP 10 to GBP 15 million when they come to tender. Our Building Envelope division suffered from planning delays in the early part of the year. In the H2, the Middle East conflict, which created a very volatile supply and demand environment. They navigated this very well with revenues level with last year's record and margins only slightly down on some investments in product certifications and support.

Speaker #1: Subsequent phases of that project are potentially worth a further 10 to 15 million pounds when they come to tender. Our building envelope division suffered from planning delays in the early part of the year.

Speaker #1: And in the second half, the Middle East conflict, which created a very volatile supply and demand environment. They navigated this very well, with revenues level with last year's record and margins only slightly down on some investments in product certifications and support.

Speaker #1: This is testament to the strong customer relationships they've developed. With architects, designers, contractors, and increasingly with blue chip landlords. Who wished to have a preferred supplier to manage the refurbishment programs on their property portfolios.

Simon Dray: This is testament to the strong customer relationships they have developed with architects, designers, contractors, and increasingly with blue-chip landlords who wish to have a preferred supplier to manage the refurbishment program on their property portfolios. It also reflects a growing interest in their sustainability-led product offering. The Building Envelope division's order book at August 2026 was 39% higher than a year ago. While we continue to see some volatility in demand, there were some signs of improving rates of conversion of pipeline into order book and order book into revenue. Our standout performer in the year was the housebuilding products business, Timloc. Revenues were 16% higher than FY25 against the backdrop of low housebuilder volumes. Since COVID, Timloc has achieved a remarkable average annual revenue growth rate of 11% per annum, despite an average 2% annual decline in UK housebuilding starts. It is quite an amazing record.

Speaker #1: It also reflects a growing interest in their sustainability-led product offering. The building envelope division's order book at August 2026 was 39% higher than a year ago.

Speaker #1: And while we continue to see some volatility in demand, the worsening signs of improving rates of conversion of pipeline into order book and order book into revenue.

Speaker #1: Our standout performer in the year was the House Building Products business, Timlock. Revenues were 16% higher than FY25, against the backdrop of low house builder volumes.

Speaker #1: Since COVID, Timloc has achieved a remarkable average annual revenue growth rate of 11% per annum, despite an average 2% annual decline in UK house-building staff.

Speaker #1: It's quite an amazing record. This is founded on customer service. They have guaranteed next-day delivery and low carriage-paid order values, with 100% on-time and full delivery.

Simon Dray: This is founded on customer service. They have guaranteed next-day delivery, and low carriage paid order values with 100% on time in full delivery, supported by a relentless focus on efficiency and new product development. Their latest launch, the Loft-Tite loft door, is shown on the right-hand side. It is a good example of their innovation, with improved airtightness and insulation and a patent-pending installation bracket designed for one person installation. We have added further manufacturing capacity and capability in the year, and Timloc is very well placed to benefit from any recovery in housebuilding volumes. I will pass back to Vijay on strategy.

Speaker #1: Supporters by a relentless focus on efficiency and new product development. Their latest launch, the Loftite Loft Door, is shown on the right-hand side. It's a good example of their innovation.

Speaker #1: With improved airtightness and insulation, and a patent pending installation bracket, designed for one person installation. We've added further manufacturing capacity and capability in the year, and Timlock's very well placed to benefit from any recovery in house building volumes.

Speaker #1: Aspect in PJ. Strategy.

Speaker #2: Thank you very much, Simon. So for those of you who know us, you'll know that we have 4 pillars to our strategy. For those of you who are new to this, I thought it'd be useful just to run through this.

Vijay Thakrar: Thank you very much, Simon. For those of you who know us, you will know that we have four pillars to our strategy. For those of you new to this, I thought it would be useful just to run through this. We try and keep things simple in the business, and the first one is we continue to be focused on sustainable, environmentally sustainable building products, because that is where all the legislation is. That is where all the expectations from construction companies and their customers are, including in housebuilding. We will continue to target new product development or enhance product development on that part of the market. As I mentioned earlier, more than 80% of our products are environmentally sustainable or meet or exceed building regulation standards.

Speaker #2: We try to keep things simple in the business, and the first one is that we continue to be focused on sustainable, environmentally sustainable building products.

Speaker #2: Because that's where all the legislation is, that's where all the expectations from construction companies and their customers are, including in house building. So we will continue to target new product development, or enhanced product development, on that part of the market.

Speaker #2: As I mentioned earlier, more than 80% of our products are environmentally sustainable or meet or exceed building regulation standards. And this commitment—this delivery to this commitment—has been recognized by the London Stock Exchange awarding Alumasc the Green Economy Mark, which is only awarded to companies where the majority of their revenues come from sustainable activities.

Vijay Thakrar: This commitment, this delivery to this commitment, has been recognized by the London Stock Exchange awarding Alumasc the Green Economy Mark, which is only awarded to companies where the majority of their revenues come from sustainable activities. Second part of our strategy, second pillar is accelerating organic sales growth, trying to outperform the market. As I said, two of our divisions have done that. We want the third division to do that, which is why we put a lot of focus on that division this year with extra support from the executive and management team. In that division, Water Management, we have some great brands. I mentioned Gatic and Wade earlier, but also within our rainwater products, there are some great brands that we just need to make more of by making sure that our operation efficiency allows us to optimize our opportunity in that market.

Speaker #2: Second part of our strategy, the second pillar is accelerating organic sales growth, i.e., trying to outperform the market. And as I said, 2 of our divisions have done that.

Speaker #2: We want the third division to do that, which is why we've put quite a lot of focus on that division this year with extra support.

Speaker #2: From the executive and management team, and in that division, Water Management, we have some great brands. I mentioned Gatic and Wade earlier, but also, within our Rainwater products, there are some great brands that we just need to make more of by making sure that our operational efficiency allows us to optimize our opportunity in that market.

Speaker #2: And of course, overseas as well. You've heard us talk about Paul Cooper and Sam and Dre have talked about our track record overseas, including Hong Kong.

Vijay Thakrar: Of course, overseas as well. You've heard us talk about Paul Hooper and Simon Drake talked about our track record overseas, including Hong Kong and latterly Singapore. We have been growing in other markets as well. If you take out the Hong Kong airport contract, our revenues from exports actually grew by 36% in the last year, showing that the investments we've made in overseas technical sales resource do bear fruit. We have started to do, we've done even more of that towards the end of last year and are driving for that growth as well. The third part of our strategy is to drive margin improvement. We were disappointed by the 10.5% we achieved, largely because of the performance in Order Management in the year just gone. The reasons for that have been explained by Simon.

Speaker #2: And lastly, Singapore. But also, we have been growing in other markets as well. If you take out the Hong Kong Airport contract, our revenues from exports actually grew by 36% in the last year.

Speaker #2: Showing that the investments we've made in overseas technical sales resource do bear fruit. And we have started to do we've done even more of that towards the end of last year.

Speaker #2: And our driving for that growth as well. The third part of our strategy is to drive margin improvement. We were disappointed by the 10.5% we achieved largely because of the performance in water management in the year just gone.

Speaker #2: The reasons for that have been explained by Simon. And with the effort we're putting into improving performance there, and trying to realize the acquisition synergies between ARP the Leicester business and the Kettering business that we already had, we would hope to improve margins in this year, and remain committed to our medium-term target of 15 to 20% operating margin.

Vijay Thakrar: With the effort we're putting into improving performance there, and trying to realize the acquisition synergies between ARP, the Leicester business, and the Kettering business that we already had, we would hope to improve margins in this year and remain committed to our medium-term target of 15% to 20% operating margin. The third, sorry, the fourth aspect of our strategy is to continue to invest in the business. Whether that's in new product development, strong technical resource, overseas capability, or new CapEx, like the ones that Simon touched on earlier, then we'll continue to do that, to provide capacity to grow our business, particularly when markets recover. We will also look at selective bolt-on acquisitions where they make sense for the business.

Speaker #2: And then the third sorry, the fourth aspect of our strategy is to continue to invest in the business. Whether that's in new product development, strong technical resource overseas capability, or new capex like the ones that Simon touched on earlier, then we'll continue to do that to provide capacity to grow our business, particularly when markets recover.

Speaker #2: And we will also look at selective bolt-on acquisitions where there makes sense for the business. Now, there is a question, and I'll deal with it now, in the chat that says, would it be sensible to pursue acquisitions while under the current executive leadership team?

Vijay Thakrar: Now, there is a question, and I'll deal with it now, in the chats that says, "Would it be sensible to pursue acquisitions while under the current executive leadership team, or do we need to wait until we've got a different position?" The answer is, we will continue to look at acquisitions and execute, undertake acquisitions. Because if they make strategic sense and the board as a whole will review that, then actually the execution of the transaction of any acquisition and integrating is the responsibility, always, of the operational teams. The operational teams haven't changed. In fact, if anything, they've been strengthened by what I described earlier. Hopefully, that deals with that question. Yes, Simon, I think if I go back to you to talk about the next section.

Speaker #2: Or do we need to wait until we've got a different position? The answer is we will continue to look at acquisitions and execute. Undertake acquisitions.

Speaker #2: Because if they make strategic sense and the board as a whole will review that, then actually the execution of the transaction or any acquisition and integrating is the responsibility always of the operational teams.

Speaker #2: And the operational teams haven't changed; in fact, if anything, they've been strengthened by what I described earlier. So hopefully that deals with that question.

Speaker #2: And then Simon, I think if I go back to you to talk about the next section.

Simon Dray: No problem, BJ. I think we have covered the first couple of points on here, but our own greenhouse gas emissions, you see the chart on the right there. They ticked up ever so slightly this year. These are scopes 1, 2, and business travel. So the emissions we caused directly ourselves ticked up very slightly, but they still represent an over 70% reduction since we started measuring them in FY18. We have now calculated our full emission, or our full carbon footprint across what are termed scopes 1, 2, and 3. So that is everything from extraction of our raw materials through to delivery and site for our customers to use. As you might imagine, for a business like ours, the majority of those relate to really carbon embodied in the raw materials and when we use them.

Speaker #1: No, from BJ. I think we've covered the first couple of points on here, but our own greenhouse gas emissions are you see the chart on the right there.

Speaker #1: They ticked up ever so slightly this year. These are scopes 1, 2, and business travel—so the emissions we caused directly ourselves. Ticked up very slightly, but they're still representing over a 70% reduction since we started measuring.

Speaker #1: And then again in FY18. And we have now calculated our full emissions, or our full carbon footprint, across what are termed Scopes 1, 2, and 3.

Speaker #1: So that's everything from extraction of our raw materials through to delivery at site. For our customers to use. And we are as you might imagine, for a business like ours, the majority of those relate to the carbon embodied in the raw materials and the one we use them.

Speaker #1: And also our transport freight logistics operations and will be engaging with our suppliers to reduce those going forwards. We have science-based target in place now for reducing the emissions and will be getting those or in the process and getting those accredited by the science-based target institute.

Simon Dray: Also our transport, freight, logistics operations, and we will be engaging with our suppliers to reduce those going forwards. We have science-based targets in place now for reducing the emissions, and we will be getting those, or in the process of getting those accredited by the Science Based Targets initiative.

Speaker #2: Thanks, Simon. This next slide, again, we're now going through the strategic pillars. This is the second pillar, a bit more detail on that. Which is all about organic revenue growth.

Vijay Thakrar: Thanks, Simon. This next slide, again, we are now going through the strategic pillars, and this is the second pillar, win more, retain more margin, which is all about organic revenue growth. As I mentioned earlier, we exited the year with an order book 49% higher than the same time last year, which is obviously quite encouraging. That included the Changi Airport contract. Actually, it is probably instructive to look at the charts on the right there, which show that in recent years, our order book has been dominated by that CKR or Hong Kong contract. While that is now tailing off, our order book with other customers is actually the highest it has been for a number of years. So that is quite positive because while we will never turn away those big orders, in terms of the quality of revenues, it is encouraging to have the sort of order book we have now got.

Speaker #2: So as I mentioned earlier, we exited we had an audit about 49% higher than the same time last year. Which is obviously quite encouraging.

Speaker #2: That included the Changi Airport contract. And it's actually pretty instructive to look at the charts on the right there, which show that in recent years our order book has been dominated by that CLK, or Hong Kong, contract.

Speaker #2: While that is now tailing off, our order book on other with other customers is actually the highest it's been for a number of years.

Speaker #2: So that's quite positive because while we will never turn away, there's big orders in terms of the quality of revenues it's encouraging to have this sort of order book we've now got.

Speaker #2: And at the bottom left, what that's showing, and the bottom right, is that our order book we had at 30 June 26 has actually converted into sales.

Vijay Thakrar: At the bottom left, what that is showing, and the bottom right, is that that order book we had at 30 June 2026 has actually converted into sales. So, we had 15 and a half of orders, and this only relates to Water Management and the building envelope business, by the way, because Timloc has been brought into their next stage delivery, so they do not have an order book. That 15 and a half million converted into sales. We obviously had new orders in the quarter, so 18 and a half were shipped in the first two months, but then the order book was then added to by 18.6, which meant that by the end of August, it was back at the same level as at June. But that is 56% higher than at August 2025.

Speaker #2: So we had 15 and a half of orders and this only relates to water management and the building envelope business, by the way, because Tim Locke, housebuilding folks, in their next day delivery said that they haven't ordered book.

Speaker #2: That 15 and a half veneer converted into sales. I mean, not we obviously had new orders in the course of 18 and a half were shipped.

Speaker #2: In the first two months, but then the order book was then added to by 18.6, which meant that by the end of August, it was back at the same level as that June.

Speaker #2: But that is 56% higher than at 25. And as a result, revenues for the first two months of the year have been 5% higher year on year, which in the current difficult market, we're pretty pleased with, not complacent because we've got another 10 months to go.

Vijay Thakrar: As a result, revenues for the first 2 months of the year have been 5% higher year-on-year. In the current difficult market, we are pretty pleased with that. Not complacent, because we have another 10 months to go. However, our teams deserve some thanks for what they are doing and how they are responding. Yes, a snapshot of our opportunity pipeline at the end of June. We do monitor this. I would just point out a couple of points on it. Firstly, over 75% is Alumasc specification product, so we are right in the game for when these come to tender. Dominated by the UK because it is our biggest market, but we have a good split within that, at private and public opportunities, including ones supported by rise in government spend, like defense, like prisons, like transport infrastructure and, to an extent, data centers.

Speaker #2: However, our team has deserved some thanks for what they're doing, how they're responding.

Speaker #1: Yes, snapshot of our opportunity pipeline at the end of June. We do monitor this. I'll just point out a couple of points on it.

Speaker #1: Firstly, over 75% is specific alley mask specification product, so we are right in the game for when these come to tender. Dominated by the UK because it's our biggest market, but we have a good split within that.

Speaker #1: And private and public opportunities. Including ones at supported by Rise and government spend like defence, like prisons, like transport infrastructure, and to an extent data centres.

Speaker #1: So there's we've got a good spread of opportunity within the UK. The other point I would make is increasingly, we're getting more and more overseas opportunities.

Vijay Thakrar: We have a good spread of opportunity within the UK. The other point I would make is, increasingly, we are getting more and more overseas opportunities. That overseas pipeline is far, far stronger than it would have been 3, 4, 5 years ago. The local technical sales resources is helping to build that, get specifications recognized in territories, especially territories where Alumasc has not been traditionally strong. In the past, Asia and the Middle East would have dominated the chart, but we are seeing some good opportunities in the Americas, Africa, and Europe as well, where we just added at the end of FY26

Speaker #1: That's overseas pipeline is far, far stronger than it would have been 3, 4, 5 years ago. The local technical sales resources is helping to build that, get the specifications recognised in territories.

Speaker #1: Especially territories where alley mask has not been traditionally strong, like in the past, Asia and the Middle East would have dominated the chart. But we are seeing some good opportunities in the Americas, Africa, and Europe as well, where we've just added at the end of FY26 a further technical sales thing.

Simon Dray: A further technical sales hit. We look forward to bringing some of those into the order book soon, but also to keeping the pipeline stocked up with new opportunities as they come. The margin improvement slide really is just to illustrate the dilutive effects of price passing through cost increases. It is marginally dilutive to our operating margin and also the mix variance dragged margins down a bit, but particularly the volume side illustrating our operational gearing. We do expect improvement in FY27, centered on the Water Management division. Both volume recovery and the efficiency measures taken over the second half of FY26, but also in that FY27 timescale, some rationalization benefits from the supply chain. We are seeing some encouraging early signs, and the board does reaffirm its medium-term target range of 15% to 20% operating margin.

Speaker #1: So, we look forward to bringing some of those into the order book soon, but also to keeping the pipeline stocked up with new opportunities that may come. The margin improvement slide really is just to illustrate the dilutive effects of price passing through cost increases—it's marginally dilutive to our operating margin.

Speaker #1: And also the mixed variance dragged margins down a bit, but particularly the volume side illustrating our operational gearing. We do expect improvement. In FY27, centred on the water management division, both volume recovery and the efficiency measures taken over the second half of FY26.

Speaker #1: But also, in that FY27 timescale, some rationalisation benefits from supply chain. And we are seeing some encouraging early signs. The Board does reaffirm its medium-term target range of 15 to 20% operating margin.

Speaker #1: I think we've covered most of the investment slide already. I just say referencing M&A opportunities, we do continue to review them. We are disciplined.

Simon Dray: I think we have covered most of the investment slide already. I just say, referencing M&A opportunities, we do continue to review them. We are disciplined. The ability to add value post-acquisition is paramount. They need to be complementary products, services, customers. They particularly need to align with our structural growth drivers. We quite like those, and we see them as a big contributor to accelerating our revenue growth. We need to be confident that there are available and addressable synergies coming from the acquisition. As we mentioned before, we have significant headroom to accelerate strategic delivery through targeted investments. Back to Vijay for the outlook.

Speaker #1: The ability to add value post-acquisition is paramount. They need to be complementary products. Services, customers. They particularly need to align with our structural growth drivers.

Speaker #1: We quite like those, and we see them as a big contributor to accelerating our revenue growth. We need to be confident that there are available and addressable synergies coming from the acquisition.

Speaker #1: And as we mentioned before, we have significant headroom to accelerate strategic delivery through targeted investments. Back to VJ for the outlook.

Vijay Thakrar: Yeah. Thank you, Simon. This is our final slide, which is really to talk about the future, the outlook. As I mentioned, we have had a positive start to the year, notwithstanding the difficult market. However, we must not get carried away. There is a long way to go in the year still. We are encouraged by also the strong order intake and the order book being 56% higher than it was a year ago, and also that we should start to see some of the product going out to the Changi Airport in Singapore later this calendar year. As a result of the actions being taken in our Water Management division, we would hope and expect to improve the operating margin for the year as a whole.

Speaker #2: Yeah. So this is thank you, Simon. This is our final slide. Which is really to talk about the future, the outlook. As I mentioned, we've had a positive start to the year.

Speaker #2: Notwithstanding the difficult market. So however, we mustn't get carried away. There's a long way to go in the year still. Although we are encouraged by the also the strong ordering take and the order book being 56% higher than it was a year ago.

Speaker #2: And also that we should start seeing some of the product going out to Changi Airport in Singapore later this calendar year. As a result of the actions being taken in our Water Management division, we would hope and expect to improve the operating margin for the year as a whole.

Speaker #2: And longer term, nothing has changed here, which is that the tailwinds are very strong for Alimask because of our focus on environmental and products that meet regulations or exceed regulations.

Vijay Thakrar: Longer term, nothing has changed here, which is that the tailwinds are very strong for Alumasc because of our focus on environmental and products that meet regulation or exceed regulations. There remains a chronic undersupply of new housing in the UK. As we all know, the government appears to be committing. Angela Rayner indicated the other day that they still think they could meet the 1.5 million target for this parliament. We really hope they do. Even if they do not, even if they get a high percentage towards that will be helpful to our business. More generally, the commercial building stock, whether that is hospitals, schools, prisons, they are aging. So there is a big opportunity once the spending opens on those, but also new areas. Simon mentioned data centers earlier.

Speaker #2: There remains a chronic undersupply of new housing in the UK. As we all know, the government appears to be committed. Angela Rayner indicated the other day that they still think they can meet the 1.5 million target for this Parliament.

Speaker #2: And we really hope they do. Even if they don't—even if they get a high percentage towards that—that will be helpful to our business.

Speaker #2: More generally, the commercial building stock, whether that's hospitals schools, prisons, they are aging. So there's a big opportunity once the spending opens on those.

Speaker #2: But also new areas. Simon mentioned data centres earlier. We already supply data centres in one of our divisions. So we have some track record there.

Vijay Thakrar: We already supply data centers in one of our divisions, so we have some track record there, which we can then build upon. Thirdly, despite the challenging circumstances for our industry in the last few years, we have continued to invest, as I hope we have shown, in our capabilities and our capacity, including overseas. Therefore, when demand as a whole does recover, and surely it will, then the future for Alumasc is pretty positive. I would like to thank our leadership team, who continue to provide stability and continuity to our business and are now really focused on helping all of our divisions grow. As a result of all of that, the board remains optimistic that we can generate further growth in shareholder value in the time ahead. So thank you very much for joining, and I think that brings to the end our presentation.

Speaker #2: Which we can then build upon. And thirdly, despite the challenging circumstances for our industry, in the last few years, we've continued to invest as I hope we've shown in our capabilities and our capacity.

Speaker #2: Including overseas. And therefore, when demand as a whole does recover, and surely it will, then the future for Alimask is pretty positive. And I'd like to thank our leadership team who continues to provide stability and continuity to our business and are now really focused on helping all of our divisions grow.

Speaker #2: So as a result of all of that, the board remains optimistic that we can generate further growth in shared value in the time ahead.

Speaker #2: So thank you very much for joining. And I think that brings to the end our presentation. Shall I hand back over to you, Simon?

Vijay Thakrar: Shall I hand back over to you, Simon?

Speaker #1: Sure. And I think that we'll now happily take Q&A.

Simon Dray: Sure. I think that we will now happily take the Q&A.

Speaker #3: That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the top right-hand corner of your screen.

Operator: That is great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the top right-hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via Investor Dashboard. Guys, as you can see, we have received a number of questions throughout today's presentation. Simon, can I please ask you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end.

Speaker #3: Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via the investor dashboard.

Speaker #3: Guys, as you can see, we have received a number of questions for today's presentation. Simon, could I please ask you to read out the questions and give responses where appropriate to do so?

Speaker #3: And I'll pick up from you at the end.

Speaker #1: Thank you very much. So I'll just read them from the top, VJ. And we'll decide who's best place to answer them. Firstly, have there been any developments with the new Dubai Airport?

Simon Dray: Thank you very much. I will just read them from the top, Vijay, and we will decide who is best placed to answer them. Firstly, have there been any developments with the new Dubai Airport?

Speaker #2: Yeah. So we are pitching for some work there. We've actually had a change in our sales team over there. And actually, that is helping us.

Vijay Thakrar: Yeah. We are pitching for some work there. We have actually had a change in our sales team over there and actually, yeah, that is helping us. The revised team is focused on that, including Peter Blanchard, the MD that I mentioned earlier. With these contracts, you can never win them straight away. You have to put some investments in the relationship, understanding what the customer is looking for. But we, as Simon showed on that world map earlier on, we are investing in this area.

Speaker #2: The revised team is focused on that, including Peter Blanchard, the MD that I mentioned earlier. So with these contracts, you can never win them straight away.

Speaker #2: You have to sort of put some investments in the relationship and understand what the customer is looking for. But we, as Simon showed on that world map earlier on, are investing in this area.

Speaker #1: Yeah. The team is based out of Dubai. They're very close to that, as well as port opportunities where they're expanding ports in the UAE. Also, the Saudi airport is another one that we're seeing very close to.

Simon Dray: Yeah. Their team is based out of Dubai, so they are very close to that, as well as port opportunities where they are expanding ports in the UAE. The Saudi airport is another one that we are staying very close to. As things come to tender, we will be right there. Another one for perhaps you, Vijay. Can the board pursue acquisitions responsibly while

Speaker #1: So as things come to tender, we will be right there. Another one for perhaps you, VJ. Can the board pursue acquisitions responsibly while operating under transactions be deferred until a permanent CEO is appointed?

Vijay Thakrar: Yeah

Simon Dray: operating under interim executive leadership, or will transactions be deferred until a permanent CEO is appointed?

Speaker #2: Yeah. Sorry, this is the one I was trying to cover earlier on because it did pop up on the screen while we were talking.

Vijay Thakrar: Yeah. Sorry, this is the one I was trying to cover earlier on

Simon Dray: Okay

Vijay Thakrar: because it didn't pop up on the screen while we were talking. Absolutely, strategically, what happens is the board looks at acquisitions, the board as a whole rather than one individual. If the board decides that it is something we want to do, it authorizes that to happen. Then the execution of the transaction, and then importantly, the execution of the integration of any acquisition is very much left to the operating team. Nothing has changed on the operating teams. As I said earlier, if anything, they are much more focused on issues that, given the extra resources we've put in. In a word, no, that doesn't change our acquisition capability nor appetite.

Speaker #2: So absolutely, strategically, what happens is that the board looks at acquisitions—the board as a whole, rather than one individual. If the board decides that it is something we want to do, it authorizes us to proceed.

Speaker #2: And then the execution of the transaction and then importantly, the execution of the integration of any acquisition is very much left to the operating team.

Speaker #2: So nothing has changed on the operating teams. As I said earlier, if anything, they're much more focused on issues that given the extra resources we've put in.

Speaker #2: So in a word, no, that doesn't change our acquisition capability nor appetite.

Speaker #1: Thank you. Is the revenue from new products rising? And can you quantify that if so? Do you want me to cover this one?

Simon Dray: Thank you. Is the revenue from new products rising, and can you quantify that if so? Do you want me to cover that one?

Speaker #2: Yes. Do you want to cover that one?

Vijay Thakrar: Yes, do you want to cover that one?

Simon Dray: Yes, it has risen. It is not a particularly useful indicator, the percentage of revenues from new products. It is very backward-looking. Operationally, I prefer to focus on the pipeline of what is coming through rather than what has already happened. But we do calculate a percentage of revenues from new products launched in the last 3 years, and it is ahead year-on-year. How should we think about the margin profile of overseas projects relative to the UK business? I will happily do that one. Generally speaking, the overseas work in total is slightly lower margin than the UK work because they tend to be bigger projects. The smaller you get, the closer to UK margins the projects are. But at the other extreme, for things like the CKR work, that is going to be at the lower end of the margins we charge as an organization.

Speaker #1: Yes, it has risen. It's not a particularly useful indicator. The percentage of revenues from new products is very backward-looking. Operationally, I prefer to focus on the pipeline of what's coming through, rather than what's already happened.

Speaker #1: But we do calculate the percentage of revenues from new products launched in the last three years, and it is ahead year on year.

Speaker #1: How should we think about the margin profile of overseas projects relative to the UK business? I'll happily do that one. Generally speaking, the overseas work in total is slightly lower margin than the UK work because there tend to be bigger projects.

Speaker #1: The smaller you get, the closer to UK margins, the projects are. But at the other extreme, for things like the CRK work, that is going to be at the lower end of the sort of margins we charge as an organisation.

Speaker #1: So I don't want to go into too much detail by project and by customer, but they do the bigger the project, generally the lower the margin.

Simon Dray: I do not want to go into too much detail by project and by customer, but the bigger the project, generally the lower the margin. Do you see opportunities for consolidation with in-house house building products with the current market challenges?

Speaker #1: Do you see opportunities for consolidation within house-building challenges?

Speaker #2: Yeah. Actually, we although we've got a very successful business there, there's actually room for growth rather than consolidation. I think there may be some it's not really my business to say anything about the house builders.

Vijay Thakrar: Yeah. Although we have got a very successful business there is actually room for growth rather than consolidation. I think there may be some. It is not really my business to say anything about the housebuilders. Everybody knows about Barratt and Redrow. They merged not long ago, and Barratt released their results this morning. I think in terms of the products we supply, there is probably room for growth. If the right type of deal comes along, yes, we will look at it. But actually, there is plenty to go for, even as we are as a standalone business. Because as we have said, we have got a great business, very good at spotting opportunities to develop new products, and very good at servicing customers. Hopefully that helps.

Speaker #2: Everybody knows that Barrett and Redro that they merged not long ago. Barrett released their results this morning. I think in terms of the products we supply, there's probably room for growth.

Speaker #2: And if the right type of deal comes along, yes, we will look at it. But actually, there's plenty to go for even as we are as a standalone business because as we've said, we've got a great business.

Speaker #2: Very good at spotting opportunities to develop new products. And very good at servicing customers. So hopefully that helps.

Simon Dray: With revenues up 5% in the first 2 months of FY27 and the order book 56% ahead, which part of the business is showing the strongest momentum, and what gives you the greatest confidence about the year ahead?

Speaker #1: With revenues up 5% in the first two months of FY27 and the order book showing the strongest momentum? And what gives you the greatest confidence about a year ahead?

Vijay Thakrar: Do you want me to pick it up, or do you want to?

Speaker #2: Can you pick it up?

Simon Dray: Yeah, I will happily do that. Yes, overall group revenues are up 5%. Actually, the strongest growth year-on-year is within Water Management, pleasingly. That is why we are confident of seeing some margin progression within the business as volumes recover within that business. But all of the divisions are ahead year-on-year, pleasingly. The order book, recognizing there is no order book within housebuilding products because it ships that day what it receives that day and what orders it receives. But the order books are ahead in Building Envelope and Water Management. More strongly ahead in Water Management than Building Envelope, but they are both ahead. So they are going well at the minute. Are there any plans or aspirations to move to the main market? If so, what timelines are you looking at?

Speaker #1: Yeah. We'll happily do that. Yes. Overall group revenues are up 5%. Actually, the strongest growth year on year is within water management, pleasingly. And that's why we're confident of seeing some margin progression within the business as volumes recover within that business.

Speaker #1: But all of the divisions are ahead year on year. Pleasingly. And the order book recognising there's no order book within house-building products because it ships that day what it receives that day and what orders it receives.

Speaker #1: But the order books are ahead in building envelope and house and water management. More strongly ahead in water management than building envelope, but they're both ahead.

Speaker #1: So, they're going well at the minute. Are there any plans or aspirations to move to the main market? If so, what timelines are you looking at?

Speaker #2: Yeah, I think the short answer is no. We're really focused on just running our business. We moved—for those of you who know Alumasc—we moved from the main market to the AIM market slightly before I joined the board.

Vijay Thakrar: Yeah, I think the short answer is no. We are really focused on just running our business. We moved, for those of you who know Alumasc, we moved from the main market to the AIM market slightly just before I joined the board about seven or eight years ago. I think we would rather just focus on running the business, and hopefully, we will get recognition for that and investors will show confidence in us.

Speaker #2: About seven or eight years ago. So I think we'd rather just focus on running the business. And hopefully, we'll get recognition for that. And investors will show confidence in us.

Speaker #1: Airport drainage, is there a global common design spec? Can you supply to any effectively around the world?

Simon Dray: Airport drainage, is there a global common design spec, can you supply to any effectively around the world?

Vijay Thakrar: We can supply to any, but only surprisingly, there is not a global just a single standard, which is why we are putting in place feet on the ground in some of these countries that we have not previously been in. The one good thing about Gatic and Wade, Gatic is a 100-year-old brand. It is very well respected. We just need to remind people who may have forgotten about us that we are still here and that we have got fantastic products there. In one sense, this is a great question because could we do more? We feel we can, and that is why we put in quite a bit of focus on this.

Speaker #2: We can supply to any, but surprisingly, there isn't a global just a single standard which is why we're putting in place feet on the ground in some of these countries that we've not previously been in.

Speaker #2: But the one good thing about Gatwick and Wade I mean, Gatwick is a 100-year-old brand, very well respected. We just need to remind people who may have forgotten about us that we're still here and that we've got fantastic products there.

Speaker #2: So once, there's a great question: could we do more? We feel we can, and that's why we've put in quite a bit of focus on this.

Speaker #1: And what shift are you working in your manufacturing facilities? And what's their capacities available? It's probably easier to talk to the spare capacity than the shifts because they will vary.

Simon Dray: What shifts are you working in your manufacturing facilities and what spare capacity is available? It is probably easier to talk to the spare capacity than the shifts because they will vary factory to factory and time of year to time of year there. There is plenty of spare capacity. Building Envelope is in essence, it is a warehousing. It does not do any manufacturing. It buys in products, designs roof specs, and then ships the product out in accordance with those specs. So it has a lot of spare capacity and at some point, we might need to put more warehousing space in, but we are a long way from having to do that yet. Water Management, most are doing a shift and a half, I think, or possibly two shifts.

Speaker #1: Factory to factory, and sometimes time of year to time of year, so there's plenty of spare capacity. Building envelope is, in essence, a warehousing.

Speaker #1: It doesn't do any manufacturing. It's buys in product, designs, roof specs, and then ships the product out in accordance with those specs. So it has a lot of spare capacity.

Speaker #1: And at some point, we might need to put more warehousing space in. But we're a long way from having to do that yet. Water management, most said doing shift and a half, I think, but possibly two shifts.

Speaker #1: So there is more to do there. And also, changing the manufacturing process within the rainwater division that I touched on there will help to drive capacity without necessarily driving an increase in shift patterns or investment in equipment.

Simon Dray: So, there is more to do there and also changing the manufacturing process within the Water Management pumps to be in line. I touched on there will help to drive capacity without necessarily driving an increase in shift patterns or investment in equipment. The housebuilding products business, Timloc, has got plenty of capacity. It is within injection molding, the easiest way to add capacity, they are already working on, they have changed the shift pattern. But the easiest way to do it is to add more tooling. So if there are, for example, there is a six impression tool, you can quite easily scale that up to a 12 impression tool and double capacity without any large investments in labor or capital expenditure. So, there is plenty of headroom within all the businesses to grow.

Speaker #1: And the house-building products business, Timlock, is has got plenty of capacity within injection moulding. The easiest way to add capacity they're only working they can change a shift pattern.

Speaker #1: But the easiest way to do it is to add more tooling. So if there are for example, if there's six impression tools, you can quite easily scale that up to a 12 impression tool and double capacity without any large investments in labour or capital expenditure.

Speaker #1: So there's plenty of headroom within all the businesses to grow.

Speaker #3: That's great. Thank you for answering all those questions. You can hear from investors, and of course, the company can review all questions submitted today. We'll publish those responses on the InvestorMeet Company platform.

Operator: That is great. Thank you for answering all those questions you can from investors. Of course, the company can review all questions submitted today and will publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which is of particular importance to the company, Vijay, could I please just ask you for a few closing comments?

Speaker #3: Just before redirecting investors to provide you with their feedback, which you know is particularly important to the company, Vijay, could that please just ask you for a few closing comments?

Speaker #2: Thank you very much. Firstly, review my thanks to InvestorMeet company for hosting this session. Much appreciated. Thank you more equally importantly, very importantly, to all of you who've taken your time today to come and join us.

Vijay Thakrar: Thank you very much. Firstly, I repeat my thanks to Investor Meet Company for hosting this session. Much appreciated. Thank you more equally importantly, very importantly, to all of you who have taken your time today to come and join us. For those who are shareholders, we appreciate your support. For those who are not, we hope that you will decide to become shareholders. So, and final thank you on all of your behalf is to our managers and employees who, in very difficult circumstances, market backdrop, have produced what is a resilient performance. So on your behalf, in case any of those are on the call, I would like to also thank them. Thank you all very much. Have a good afternoon.

Speaker #2: For those who are shareholders, we appreciate your support. For those who aren't, we hope that you will decide to become shareholders. So, a final thank you on all of your behalf is to our managers and employees who, in very difficult circumstances—market, bank drop—have produced what is a resilient performance.

Speaker #2: So, on your behalf, in case any of those are on the call, I'd like to also thank them. Thank you all very much. Have a good afternoon.

Speaker #3: That's great. Thank you for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can best understand your views and expectations.

Operator: That is great. Thank you for updating investors today. Could I please ask investors not to close the session as you will now be automatically redirected to provide your feedback in order that the management team can best understand your views and expectations. This will only take a few moments to complete and I am sure will be greatly valued by the company. On behalf of the management team, good afternoon.

Speaker #3: This won't take a few moments to complete, and I'm sure it'll be greatly valued by the company. And on behalf of management team, good afternoon.

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Q4 2026 Alumasc Group PLC Earnings Call

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