Insider Media Limited

Underlying pre-tax profit is set to fall "significantly" short of last year's figure at Kettering-based Alumasc Group as pressure on margins in the building products division continued.

A "significant" one-off cost of meeting the higher-than-expected growth in customer demand at Alumasc Precision also added to the shortfall.

The supplier of premium building and precision engineering products expects the half-year figure to be below the £2.1m reported a year ago, the group said in a trading update.

"The full extent of the additional costs at Alumasc Precision only became clear following receipt of the results of the December month-end stock count earlier this week.

"Immediate action has been taken to curtail the excess level of expenditure as we enter the second half of our financial year," it added.

Group revenues of about £54m for the half year – in respect of financial year ending 30 June 2012 – are 9 per cent ahead of the comparable period, driven by "continued strong growth" at Alumasc Precision.

A stronger second half result is expected by the group, underpinned by normal seasonal bias; a significant uplift in the order book in the facades business driven by demand from the Community Energy Savings Programme; a stronger order book in the roofing business; and an improved performance at Alumasc Precision, the business told the Stock Exchange.

The group's order books continue to exceed £43m.