Alumasc Group PLC on Tuesday announced it increased its interim payout despite reporting a lower profit in the six months to December 31, as expenses grew faster than revenue.

Alumasc is a Kettering, England-based supplier of building & engineering products.

The company said interim pretax profit fell 14% to £5.3 million from £6.2 million a year prior.

Revenue climbed 5.4% to £45.0 million from £42.6 million. However, cost of sales increased by 5.8% to £28.4 million from £26.9 million. Net operating expenses widened 16% to £10.7 million from £9.3 million. Meanwhile, its post-tax loss from discontinued operations doubled to £1.8 million from £900,000.

‘This was a strong first half performance, against a comparative that included significant sales to Chek Lap Kok airport in Hong Kong,’ the company said.

Despite the fall in profit, Alumasc declared an interim dividend of 3.40 pence per share, up 1.5% from 3.35p ago, citing ‘confidence in the future performance of the business.’

Looking ahead, the company said: ‘Water Management has seen lower first half export volumes, but a stronger performance is expected in the second half as a result of the next phase of the Chek Lap Kok airport project and other overseas project phasing.’

Alumasc shares were 2.7% lower at 160.00 pence each in London on Tuesday around midday.

Copyright 2023 Alliance News Ltd. All Rights Reserved.