Business
Closure of Copal Casting
Closure of Copal Casting.
About this update from Alumasc Group Plc
[{"type":"text","content":"\n Alumasc Group PLC\n07 November 2005\n\n THE ALUMASC GROUP PLC\n\n Closure of Copal Casting\n\nAlumasc, the high specification building and engineering products company,\nannounces the closure of Copal, its loss-making gravity casting business, based\nin Handsworth, West Midlands.\n\nFollowing expressions of interest, negotiations to sell Copal have been taking\nplace for several months, but have failed to secure a buyer. The business, which\nhas incurred mounting losses since the demise of Rover in April, will commence\nclosure on 18 November 2005.\n\nAlumasc's accounts for the year to 30 June 2005 included Copal's losses in the\nyear and a write-down of assets in anticipation of a sale of the business.\nTrading losses prior to closure in the current year and redundancy costs,\nestimated at\napproximately £1.5 million in aggregate, will be accounted for as discontinued\nactivities in the half year accounts to 31 December 2005.\n\nWithdrawal from Copal, as from Bissell earlier in 2005, is consistent with the\nGroup's strategy to focus its development in those core business areas of\npremium building and engineering products where know-how and service are at a\npremium.\n\nAlumasc's ongoing engineering activities are in the process of replacing\nbusiness at Rover and Powertrain, the loss of which was reported to have cost\nthe Group\n£1 million in the prior year. While the introduction of new projects and\ncustomers outside the automotive industry is, in general, proceeding\nsatisfactorily, it appears unlikely to compensate fully in the short term for\nthe work lost, with the result that the Board now anticipates lower profits from\nits ongoing engineering business in the first half of the current year (to 31\nDecember 2005) than in the equivalent period of the prior year, with a further\nincrease in the Group's second half bias, highlighted in last month's AGM\nStatement. Meanwhile, the Group's building products activities, which\ncontributed two-thirds to last year's profits, have continued to advance in the\nearly months of the current year.\nEnquiries:\n\nThe Alumasc Group plc 01536-383 844\nJohn McCall (Chairman)\nPaul Hooper (Chief Executive)\n\nBankside Consultants Limited\nCharles Ponsonby 020-7367 8851\n [email protected]\n\n\n\n\n\n\n This information is provided by RNS\n The company news service from th...