Source: Sharecast
Updating on trading ahead of its annual general meeting, the AIM-listed firm said that already volatile conditions in its core UK residential and commercial markets had become "more challenging" during the first quarter.
In particular, it said a number of delays in larger new build and repair, maintenance and improvement (RMI) projects - in large part due to uncertainty around the upcoming Budget - had constrained revenues in its building envelope and water management divisions, "despite a healthy order book and a growing pipeline of opportunities".
It continued: "Further actions are being taken to improve operational efficiency, including targeted cost initiatives where appropriate, to mitigate the short-term impact of project delays."
Alumasc insisted that its structural growth drivers remained "robust". It also pointed to "substantial" capacity across the business and a strong balance sheet, leaving it well-positioned to benefit from a sustained recovery in UK construction.
However, that did not stop the shares falling sharply, and by 0930 BST, the stock was down 12% at 301p.
Paul Hopper, chief executive, said: "While short-term macroeconomic, fiscal and political headwinds have intensified during the first quarter of this new financial year, we continue to execute our strategy and growth our market share.
"As previously announced, we expected a second-half weighted performance, and our order book and pipeline remains healthy.
"Alumasc’s medium-term outlook remains very positive."
Peel Hunt said: "Given the backdrop, we are conservatively cutting our pre-tax profit expectations for the 2026 full-year by £1m to £14m. But with the pipeline in good shape, our 2027/28 estimated forecasts remain unchanged.
"We maintain our ‘buy’ recommendation and 410p target price."