Alumasc Group plc (ALU) 2024年年度報告「LSE」.pdf

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1、The Alumasc Group plcReport and Accounts 2024Building products for a sustainable futureContentsP5Investment CaseWhat sets us apartP6Strategy in ActionValue-enhancing investmentsWe are delivering on our purpose to provide high-quality,low carbon,sustainable building products and solutionsWhats in thi

2、s reportStrategic ReportHighlights 01At a Glance 02Chairs Statement 04Investment Case 05Strategy in Action 06Chief Executives Review 10Our Markets 13Business Model 14Strategy 16Sustainability Report 18Our Products 20Our People 22Our Planet 26Task Force on Climate-related Financial Disclosures(TCFD)3

3、0Non-Financial Information Statement 35Operating Segments 36Water Management 36Building Envelope 38Housebuilding Products 40Financial Review 42Risk Management 46Principal Risks and Uncertainties 47Section 172 Companies Act 2006 Statement 51GovernanceBoard of Directors 58Corporate Governance Statemen

4、t 60Nomination Committee Report 68Audit Committee Report 70Directors Remuneration Report 74Annual Report on Remuneration 77Directors Report 86Statement of Directors Responsibilities 89Financial StatementsIndependent Auditors Report 92Consolidated Statement of Comprehensive Income 96Consolidated Stat

5、ement of Financial Position 97Consolidated Statement of Cash Flows 98Consolidated Statement of Changes in Equity 99Notes to the Financial Statements 100Company Statement of Financial Position 129Company Statement of Cash Flows 130Company Statement of Changes in Equity 131Notes to the Company Financi

6、al Statements 132Company InformationFinancial Summary 146Additional Shareholder Information 147List of Subsidiaries 149Business and Operating Locations 151Company Information and Advisers 152Notice of Annual General Meeting 153Explanatory Notes to the Notice of Annual General Meeting 155Financial Hi

7、ghlights(continuing operations)Revenue*100.7m2022/23:89.1m Underlying*PBT13.0m2022/23:11.2m Underlying*EPS26.9p2022/23:25.0pDividends per share10.75p2022/23:10.3p Reported PBT11.7m2022/23:8.8m Net bank debt7.2m2022/23:2.8mOperational Highlights Outstanding performance against a very challenging mark

8、et backdrop Strong organic revenue and profit growth and contribution from ARP acquisition Further 4.7%reduction in our scope 1,2 and business travel GHG emissions intensity 80%of portfolio aligned with strategic environmental growth drivers Continued investment to support Groups futuregrowth ambiti

9、ons*A reconciliation of underlying to statutory profit before tax is provided in note 5 to the Group financial statements.P16StrategyAchieving our ambitionsP10Chief Executives ReviewRecord performanceThe Alumasc Group plcReport and Accounts 202401Strategic ReportCompany InformationFinancial Statemen

10、tsGovernanceUrban green spaces and biodiversityGreen roofs to provide civic amenity spaces,enhance biodiversity and improve occupant wellbeing.Our climate solutionsBuilding decarbonisationOur products enhance a buildings energy efficiency by improving insulation and controlling ventilation,while abs

11、orbing carbon.Water managementImproving the urban environments climate resilience,by efficiently managing rainwater andattenuating stormwater.We are driven by our purposeWhat we do We design,manufacture and supply high-quality,durable and environmentally efficient products that provide market-leadin

12、g solutions to tackle the sustainability and climate challenges facing the global built environment.Water ManagementBuilding EnvelopeHousebuilding ProductsCreating innovative building products for a sustainable futureOur operating segments See pages 6,and 16 to 17 for more on our sustainability stra

13、tegySee pages 36 to 41At a GlanceStrategic Report02The Alumasc Group plcReport and Accounts 2024Underpinned by our sustainability pillarsProductsEnvironmental solutions using sustainable materialsPlanetReducing our impact on the environmentPeopleInvesting in our employees wellbeing and working lives

14、See pages 14 to 17 for more on our business model and strategyDelivered throughOur business modelCreating value responsibly for all our stakeholdersOur strategyAchieving our goals through our four strategic objectives:Championing sustainable building products in a wide range of niche markets Enhanci

15、ng organic growth through high impact investment and innovation Driving margin improvement through operational efficiencies Accelerating delivery with value accretive acquisitions The Alumasc Group plcReport and Accounts 202403Financial StatementsCompany InformationStrategic ReportGovernanceRecord p

16、rofits,delivering strategically and ambitious going forwardChairs StatementWe saw a further 4.7%reduction in our Scope 1,2 and business travel greenhouse gas(GHG)emissions intensity(70%reduction since we began reporting it in FY18).Our full Scope 3 emission calculations are well underway as we suppo

17、rt our divisions on the Groups pathway to net zero.Strategy and ambitionsAlumasc continues to make clear and sustained progress towards each of our fourstrategic objectives:Organic revenue growth(+6.5%);Operating margin improvement(+50bps);Sustainable product revenues(which represented over 85%of Gr

18、oup revenue);and Value-enhancing investments to support our longer-term growth objectives.Investments continued in support of our commercial strategy,in sales/customer support and new product development.Inaddition to the ARP acquisition,we invested 3.6 million of capital in organisational capabilit

19、y,including automation of access cover manufacturing at our Halstead site,and in providing better information to support commercial decision-making through ERP and CRM upgrades.We have been pursuing this growth-focused strategy for around three years now,and aspire to grow revenues faster than the U

20、K construction sector while increasing operating margins to accelerate profit growth and deliver superior shareholdervalue.Pension schemeAlumasc continues to work constructively with the Trustees of the defined benefit pension scheme to fund and derisk the scheme.On an accounting/technical basis,the

21、 June 2024 surplus of 0.8 million compares to the June 2023 deficit of 4.3 million.Alumasc continues to contribute 1.2 million p.a.to the scheme until the next formal actuarial valuation exercise in 2025 while working constructively with the Trustees to help reduce the schemes volatility and its dep

22、endence on the Group.DividendsReflecting the Boards confidence,a final dividend of 7.3p per share will be recommended to shareholders,payable on 1 November 2024.If approved,when added to the interim dividend of 3.45p paid in April2024,this would represent a total dividend per share of 10.75p per sha

23、re(2022/23:10.3p),in accordance with our progressive dividend policy and medium-term objective of 2.5 to 3times earnings cover.Our people past,present andfutureIt is Alumascs people who deliver our purpose of providing building products for a sustainable future.On behalf of all stakeholders,I thank

24、all our colleagues(past,present and future)for their dedication andcommitment.In December 2023,we welcomed new colleagues with the ARP acquisition in Leicester,who are already making a strong contribution to the Group.Sadly,as we increase automation with modern machinery at our facility in Halstead,

25、we recently announced the planned closure of our long-standing site in Dover.Our thanks go to the staff affected by this for their professionalism and dedication over many years of service.OutlookWhile we still expect market headwinds to persist in the near term before commercial conditions strength

26、en materially,including anticipated further interest rate reductions,Alumasc is confident in its future prospects.Our recent track record of consistently delivering profitable growth;investments in people/processes/new products/ARP;the evolving regulatory/environmental and construction/housebuilding

27、 landscape;and our self help measures cause us to be optimistic about the delivery of our medium-term aspirations,as market conditions improve.Vijay ThakrarChair3 September 2024Vijay ThakrarChairDespite geopolitical and economic uncertainty,Alumasc delivered organic revenue and strong profit growth

28、in all three divisions.Together with an encouraging performance from ARP in the first six months of our ownership,this resulted in a record Group profit,with underlying profit before tax*(UPBT)of 13.0 million(2022/23:11.2 million),and an underlying operating margin*of 14.1%(2022/23:13.6%).Statutory

29、profit before tax from continuing operations was11.7million(2022/23:10.5 million).Performance financial andenvironmentalThe record UPBT*of 13.0 million arose from higher revenues(now above 100 million),from a strategic focus on environmentally sustainable solutions,new product development,investment

30、 in people and processes,the ARP acquisition and drivingefficiencies.Our underlying operating margin*of 14.1%(2022/23:13.6%)is progressing towards our target of 15%20%,with all three divisions contributing to the improvement.Operating cashflow was once again strong at 16.2million(2022/23:12.2 millio

31、n),enabling us tocontinue to invest in strategic initiatives.Our environmentally focused product portfolio continues to benefit from long-term growth drivers,helping us to outperform the general UK construction market.*A reconciliation of underlying to statutory profit before tax is included in note

32、 5 to the Group Financial Statements.The Alumasc Group plcReport and Accounts 202404Strategic ReportRevenue100.7mUnderlying PBT*13.0mDividend per share10.75p2024100.7m89.1m89.4m77.8m60.3m71.3m20232022202120202019202413.0m11.2m12.7m10.0m4.6m6.7m20232022202120202019202410.75p10.3p7.4p20232019202220212

33、02010.0p9.5p2.0pWhy invest in Alumasc?1Track record of sustainable profit÷nd growth Strong record of profit growth(five-year compound annual underlying operating profit growth 15.2%FY1924)Progressive dividend policy supported by growth inearnings Strong dividend growth to reward shareholders2L

34、ong-term structural growth drivers fromour sustainability-linkedproducts 80%of Alumasc products specified to deliverenvironmental benefits Commitment to sustainability in construction recognised by the LSE Green Economy mark Sustainability focus underpins potential for growthahead of underlying mark

35、ets Structural demand from UK housing undersupplyand ageing commercial and residential building stock3Premium products and brands with strong market positions in the UK,with strong exportpotential High margin premium products typically specifiedby customers and regulations Trusted brands across comm

36、ercial,new build residential and RMI markets Leading market positions with an established digital presence Scope to accelerate growth in niche internationalmarkets4Well-established growth strategy Customer-centric culture focused on delivering excellent service and technical support Investment in pe

37、ople,innovation and efficiency to drive higher margins Track record of delivering value-accretive acquisitions to accelerate growth Management team with extensive industry experience5Robust financial position providescapacity to invest and drive ambitious organic andinorganic growth Strong balance s

38、heet and cashflow Continued focus on innovation and capabilityinvestment Carefully selected M&A to accelerate growthThe Alumasc Group plcReport and Accounts 202405Strategic ReportFinancial StatementsCompany InformationGovernanceChampioning sustainable buildingproductsStrategy in ActionSustainable ro

39、ofing solutionsAlumasc Sustainable Solutions aim to reduce the impact on our environment,throughout and beyond the buildings life cycle.Alumascs sustainable roofing solutionsinclude:Green Roofs BluRoofs Bio-SolaCell SolaCellGreen Roofs provide rainwater buffering,air purification,temperature regulat

40、ion,energy savings,and biodiversity support,contributing to climate-proof construction under current guidelines such as BS8683 BNG now integrating the new legislation with BREEAM.BluRoofs manage stormwater runoff,aligning with SUDS practices and PPS25,essential in growing urban areas.Bio-SolaCell in

41、tegrates green roofs with solar panels,incorporating new legislation,enhancing biodiversity and energy efficiency.SolaCell focuses on efficient,compact PV systems that support PARTL and carbon net-zero goals.Alumasc continues to innovate,staying ahead of legislation and market development needs in s

42、ustainable construction,committed to delivering high-quality support and solutions that enhance our customers design capability and ensure seamless operations from conception and design to completion and aftercare.Rad-Seal 10&15Rad-Seal is the face-fixed radiator pipe guide and seal from Housebuildi

43、ng Building Products,designed to provide an effective air leakage barrier around the entry points of either 10mm or 15mm plastic radiator pipework in a newbuildhouse.Aligned with Housebuilding Products commitment to helping build a greener future,both the 10mm and 15mm Rad-Seal are manufactured from

44、 100%recycled materials.The main unit is produced from white recycled polypropylene and the gasket seals are manufactured from recycled thermoplastic elastomer.Theproduct is also 100%recyclable at theendof the building life cycle.Housebuilding Products launched the patented 10mm Rad-Seal in 2020,des

45、igned to suit standard central heating systems using 10mm pipework,to preserve room temperatures and reduce energy consumption and costs for the homeowner.For housebuilders,it is a simple yet effective way to help achieve Part Ls required air leakage performance and the new Future Homes Standard eff

46、ective from2025.The product offers significant benefits such as a straight-forward face-fix installation process,no requirement for a back-box and a slim projection of just 25mm from the wall to go behind mostradiators.In line with changing building regulations developers have started incorporating

47、energy efficient heating systems such as air and ground-sourced heat pumps these systems require 15mm pipework as they run with higher flow rates.In 2023,Housebuilding Products introduced the patent pending Rad-Seal 15 to accommodate this change in building practice while maintaining the key product

48、 benefits the 10mm Rad-Seal hasto offer.The Rad-Seal is a prime product example of Housebuilding Products commitment to sustainability and product innovation without compromising onperformance.The Alumasc Group plcReport and Accounts 202406Strategic ReportAccelerating organic revenue growthMustang g

49、utteringARPs seamless aluminium gutter systemsARP sells seamless gutter coils that can be used and pressed into shape at the installation site.Guttering can then be made to the exact dimensions on the site thereby reducing wastage.It is the only seamless gutter system approved by the BBA.ARPs seamle

50、ss gutter coils are manufactured with a 78%recyclable content and made using 95%hydroelectricity.There are significant benefits of seamless aluminium guttering,including:Aluminium is abundant and infinitely recyclable Cost of the installation of Mustang guttering is within 5%7%of the installation of

51、 plastic gutters 75%of the aluminium ever produced remains in use today*95%less energy used to manufacture recycled material GHG used in aluminium production has halved in the last 20 years*The scrap value of the aluminium encourages recycling*As reported by ALFED Aluminium Federation.KeyEmployeesCo

52、mpany:ECL Hong Kong Elkington China LtdCompany:Gatic(Middle East)FZ-LLCOfficesWorldwide DistributorsEuropean DistributorsOverseas sales growthDuring the year,our international presence was bolstered by the employment of a Regional Manager in Latin America and the establishment of a local sales offic

53、e in the UAE as a base for coverage of the Middle East,Africa and Asia.During recent years,we have shipped products to 112 countries and,as an example of our geographical spread,during the year,we completed projects as far afield as Port of Oakland in North America,Bogota and Lima Airports in South

54、America,Auckland Airport in Oceania,Singapore and Hong Kong Airports in Asia,Jeddah Port in the Middle East,Dublin Airport in Ireland,Manzanillo Port in Mexico,as well as numerous projects within mainlandEurope.The Alumasc Group plcReport and Accounts 202407Strategic ReportFinancial StatementsCompan

55、y InformationGovernanceARP Group Limited(ARP)is a manufacturer and distributor of metal rainwater,architectural aluminium products and accessories.It is a strong brand within the Water Management marketplace.ARP was acquired by Alumasc in December 2023.ARPs operations are based in Leicester,where it

56、 has four leasehold units,and employs 65 people.ARP is an excellent fit with Alumasc Water Management Solutions as it produces gutters,downpipes,facias,soffits and copings and a steel range.ARP also has:Multiple operational capabilities:bespoke product,spray paint and powder coating lines,in-house p

57、roduct development andprototyping.Complementary routes to market:contractors,independent and national merchants,online sales,with a number of online resellers together with direct sales via their online sales channels.There are numerous opportunities with ARP as part of the Group,in particular:ARPs

58、strong relationships with contractors,which compliments Alumascs business model and existing routes to market;An excellent fit with Alumascs drainage range of goods,these products can be added to ARPs direct selling and onlinesales;Procurement synergies arising from a consolidation of purchasing vol

59、umes;and Operational synergies from sharing design capabilities and manufacturing best practice.Acquisition of ARP Group(ARP)This acquisition aligns with our strategy of accelerating organic growth withcomplementary bolt-on acquisitions.Paul HooperChief Executive,The Alumasc Group plcDriving margin

60、improvementInvesting in value-enhancingopportunitiesStrategy in Action continuedOperational efficiencies As part of our efficiency programme,Water Management has replaced the manual machining of Gatic Covers at Dover with CNC machines.The machines have been installed at Halstead and they remove the

61、need for manual grinding and the requirement to pre-assemble covers to check for accuracy prior to shipping.Themachinery will also help us reduce leadtimes for products for UK and European markets.This technology also will provide for excellent degrees of accuracy that cannot be matched by hand asse

62、mbly.This facility will also provide Water Management with opportunities to make and supply other equipment using the two CNC machines.The closure of our Dover site is planned for December 2024,once all production has moved to Halstead,further reducing the number of sites operated by the business,th

63、ereby improving our operational efficiency.Automated manufacture will result in:Higher degree of accuracy Removing manual assembly and grindingprocess Opportunity for further innovation Improved site efficiency Add capacity for increased sales Shorten lead times for customers Reduced stock holding r

64、equirementsThe Alumasc Group plcReport and Accounts 202408Strategic Report3.1%2.7%The development features a variety of living spaces,including studio apartments,one,two,and three-bedroom residences,as well as ground-floor commercial spaces encompassing retail shops,food and beverage outlets,and a f

65、itness centre.The BriefSustainability and lifecycle credentials were key to the design specification,as well as finding solutions for complex details and interface challenges.A roofing solution was required to support the lifecycle of the building along with excellent product reputation.Given the qu

66、ality,longevity,and environmental considerations required from the roofing design,the roofing system properties and performance were extremely important fromthe outset.Controlling waterflowAfter comprehensive discussions with the client,a combination of Alumascs Hydrotech and BluRoof systems were de

67、termined to be the perfect solutions for this project,both versatile systems that have a proven history across new build projects for residential,commercial,and public buildings.By incorporating these systems within the design,Alumasc was able to offer a comprehensive and sustainable solution for wa

68、ter management,providing benefits that extend beyond stormwater control to encompass environmental conservation,energy efficiency,and long-term cost savings.The Alumasc BluRoof system was incorporated throughout the design to counteract the effects of heavy rainfall.The BluRoof system is designed to

69、 alleviate flood-risk by attenuating stormwater via controlled discharge over a 24-hour period at roof level.This mitigates the effects of flash flooding and intense rainfall events,which are becoming more common as climate change impacts weather patterns and increasing urbanisation.The key feature

70、is the ability to regulate the release of rainwater from the roof through adjustable flow control outlets,meaning it is versatile and can be used in several different applications from roofs to podiums,even combining multiple levels and larger catchment areas on roofs.SustainabilityThe design blends

71、 both hard and soft landscaping elements,incorporating extensive planting throughout the scheme.This strategic approach not only enhances the aesthetic appeal but also contributes significantly to the attainment of noteworthy biodiversity net gain credentials.Bypromoting sustainable water practices

72、and energy efficiency,the Alumasc BluRoof system contributes to the reduction of a buildings carbon footprint.This aligns with broader environmental goals and sustainability initiatives.Alumascs Hydrotech system was specified for the inverted roof areas.It can be easily applied to different substrat

73、es,including horizontal and vertical surfaces.Hydrotech has a successful track record spanning more than 50 years and is designed to last the lifetime of a building structure,it is also subject to the highest levels of certification and testing.The formulation consisted of refined asphalts and synth

74、etic rubbers with 30%recycled content.The Residences next to Edgbaston Stadium in Birmingham.This new residential-led mixed-use development was designed to offer over 370 new build-to-rent apartments,addressing the increasing demand for such accommodation in the vicinity.The Alumasc Group plcReport

75、and Accounts 202409Strategic ReportFinancial StatementsCompany InformationGovernanceNew growth,new markets,and new productsOverview of performanceAgainst a challenging background it is very encouraging to report a record Group performance in 2024.Revenue grew by 13%to 100.7 million and underlying pr

76、ofit before tax by 16%to 13.0 million.The operating margin grew to 14.1%(from 13.6%)with all divisions contributing to the improvement,and represents further progress towards our medium-term ambition of 15%20%.All of the above was achieved despite a slowdown in overall UK construction activity and,i

77、n particular,a significant slowdown in UK house construction activity.Group sales included 5.8 million from ARP,the Water Management business acquired in late December 2023.Organic sales growth was 6.5%,significantly outperforming the estimated 2.9%decline in overall UK construction activity over 20

78、24.There was encouragingly strong growth in export activity following the investment in export sales representation,which was achieved despite the limited call-offs from the significant project at Chek Lap Kok airport in Hong Kong.This mitigated some UK project delays which impacted the Water Manage

79、ment divisions domestic revenues.Non-UK sales represented 10.0%of total Group revenue(2022/23:5.6%).Financial highlights and overview2023/242022/23%changeGroup performance from continuing operations:Revenue(m)100.789.1+13%Underlying profit before tax(m)*13.011.2+16%Statutory profit before tax(m)11.7

80、10.5+11%Underlying earnings per share(pence)*26.925.0+8%Basic earnings per share(pence)24.323.3+4%Dividends per share(pence)10.7510.3+4%*A reconciliation of underlying to statutory profit before tax is provided in note 5 to the Group Financial Statements.We have focused on the execution of our organ

81、ic and inorganic growthstrategy.Paul HooperChief ExecutiveThe ARP business has performed very well in the six months following its acquisition.Cross-selling opportunities are being taken,and work is well underway to realise the substantial purchasing synergies presented by the acquisition,which will

82、 benefit the Group from next year.Divisional reviewWater ManagementRevenue:48.3 million (2022/23:39.8 million)Underlying operating profit*:7.6 million(2022/23:5.8 million)Underlying operating margin*:15.8%(2022/23:14.5%)Operating profit:6.8 million (2022/23:5.6 million)*Prior to restructuring costs

83、of 0.6 million(2022/23:0.1 million)and brand amortisation charges of 0.2 million(2022/23:0.1 million).The Water Management Division grew its revenue by 8.5 million(21%),a very commendable achievement.Included in this was the excellent first six months contribution from ARP of 5.8 million,together wi

84、th strong organic growth of 7%.Chief Executives ReviewThe Alumasc Group plcReport and Accounts 202410Strategic ReportUnderlying operating margins improved to 15.8%(FY23:14.5%),reflecting the volume growth and continued focus on operational excellence.Underlying operating profit grew32%with 16%organi

85、c growth and 16%from ARP.Several government-backed projects assisted in a healthy UK growth of Gatics special access covers.This activity was supplemented by first successes from our new export sales personnel,in particular in Latin America for Colombia,Peru and Mexico.Chek Lap Kok airport in Hong K

86、ong had limited pull through of the 7.0million contract originally awarded in 2022.Drainage products had a quieter year,with delays to some larger UK projects,although we anticipate an improved performance in the next financial year.ARP,acquired in late December 2023,has performed very well.We have

87、been impressed by the skill and dedication of its team and look forward to working with them to deliver the significant synergies this acquisition presents.Building EnvelopeRevenue:37.6 million (2022/23:34.6 million)Underlying operating profit*:4.6 million(2022/23:4.1 million)Underlying operating ma

88、rgin*:12.3%(2022/23:11.8%)Operating Profit:4.6 million (2022/23:4.1 million)*No adjustments in 2023/24 or 2022/23.The Building Envelope division grew its revenue by 3.0 million(9%)and underlying operating profit by 0.5 million(13%),driven by its previous investment in high calibre technical sales st

89、aff.A strategic focus on developing new and improved systems which enhance sustainability is helping the division gain share:in particular carbon-absorbing membranes,and Bio Solar systems which combine cost reduction and energy generation to enhance payback.Legislation drivers on heat loss reduction

90、,green technologies and suburban environments assisted in the increase in demand.Long-term warranties,beneficial life cost cycles and enhanced customer support in technical and customer service complete the offer to the high-end market.Benefits continue to accrue from very strong and long-standing r

91、elationships with specifiers,surveyors,multi-building owners,contractors and suppliers.Work is ongoing to continually improve the performance of the product range and thus enhance divisional margins.Housebuilding Products Revenue:14.8 million (2022/23:14.7 million)Underlying operating profit*:3.8 mi

92、llion(2022/23:3.5 million)Underlying operating margin*:25.3%(2022/23:23.9%)Operating profit:3.8 million (2022/23:3.3 million)*Prior to restructuring costs of nil(2022/23:0.2million).During a challenging housebuilding market in 2023,where the CPA reported a decline in new starts of 18%,it was a very

93、creditable achievement for our Housebuilding Products division,Timloc,to grow its revenue.This was through self-help,including the increased sales of both inventive roof tile vents and roofline products to roofing merchants,where Timloc has now established itself in this adjacent channel.This,combin

94、ed with Timlocs excellent reputation for its industry-leading next-day service,has led to more merchants stocking Timlocs expanding product range.In addition to its excellent sales performance,Timloc grew its overall underlying operating profit by 0.3 million(7%)to 3.8 million.Thisresulted in a 25.3

95、%underlying operating margin,1.4 percentage points ahead of the prior year and driven by product mixand improved efficiencies.Additional new products are being developed and further investments are also planned in operational capability(including automation),external sales and additional NPD resourc

96、e.Timloc will be very well placedwhen the housebuilding market eventually recovers.The interest rate outlook and the commitments from the new UK Government on building targets and easing planning restrictions provide some encouraging early signs.Heritage Cast Aluminium rainwater systems from Alumasc

97、 were specified for luxury homes in Hertfordshire.The Alumasc Group plcReport and Accounts 202411Strategic ReportFinancial StatementsCompany InformationGovernanceChief Executives Review continuedAgainst a challenging background it is very encouraging to report a record Group performance in 2024.Paul

98、 HooperChief ExecutiveStrategic reviewThe Group continued to progress its long-term growth strategy.Championing sustainable buildingproducts:Resilient performance demonstrates the structural demand underpin for environmental solutions Building Envelope establishing itself as aleader in sustainable r

99、oofing systems Scope 3 GHG calculations,EPD and net zero programme underway,SBTi accreditation later in year Product development targeting new environmental/safety legislation(including Building Regulations Part B/L/F,Biodiversity Net Gain,Building Safety Act 2023 and building decarbonisation)Accele

100、rating organic revenue growth:6.5%organic growth(vs decline in UK general construction market activity)New products continue to be a key part of our growth strategy,and 16%of FY24 sales were from products launched in thelast three years UK sales robust Investment in new product development,sales,tec

101、hnical servicesand support Strong growth in export sales Investment in Water Management divisions overseas sales resourceOutlook Demand headwinds unlikely to alleviate until 2025 Medium-term drivers strong:Supportive environmental and building safety regulations New Government housebuilding targets

102、Strong business model and significant capacity to invest Opportunity to deliver significant shareholder value The strong performance during the year reflects Alumascs portfolio of highly effective solutions to the growing challenge of climate change across the built environment.The management team c

103、ontinues to progress with its long-term growth strategy,to accelerate organic growth,drive margin improvement and enhance delivery through value-accretive investments which continue to underpin our future growth ambitions.Alumascs performance against the backdrop of challenging markets during 2024 s

104、hows the businesss quality,and as we progress into 2025 we have a clear line of sight of our growth plans,capacity to invest and opportunity to deliver significant shareholder value.While demand headwinds in Alumascs commercial markets are likely to persist for the remainder of 2024,the positive tra

105、ding momentum has continued into the new financial year,and the Board is optimistic foranother year of growth.Paul HooperChief Executive3 September 2024Driving margin improvement:Underlying operating margin 14.1%(2022/23:13.6%)Further progress towards 15%20%Group operating margin target Drop-through

106、 from additional volumes Continual efficiency improvements Investment in common ERP/CRM platform to enhance commercial decisionmaking Delivery commenced on ARP synergies,with further benefits to come in FY25 Relocation of access cover production from Dover site to Halstead from January 2025:Automate

107、s currently manual manufacturing processes;0.8 million annualised cash saving;Net cost circa 3.3 million(spend to 30 June 2024 2.7 million).Value-accretive investment to underpin our future growth ambitions:Strong financial position enabled continued investment despite challenging commercial markets

108、 Key revenue investments:Technical sales and customer service resource at Building Envelope;New product development at Housebuilding Products Acquisition of ARP strengthens our presence in rainwater management,and helps accelerate our growth ambitions 3.6m capital spend in year includes:CNC machines

109、 to automate access covers manufacturing at Halstead ERP and CRM investments to improveefficiency and commercial decision makingThe Alumasc Group plcReport and Accounts 202412Strategic Report2.0%1.6%0.2%3.8%2.1%11.1%5.0%(3.9)%6.8%6.5%3.1%10.2%(2.9)%1.6%(1.8)%(6.0)%3.6%2.8%2.7%4.8%FY26*FY26*FY26*FY26

110、*FY24*FY24*FY24*FY24*FY25*FY25*FY25*FY25*FY23FY23FY23FY23FY22FY22FY22FY22Total construction marketyear-on-year changeNon-residential outputyear-on-year changeHousing outputyear-on-year changeCommercial/Industrial/Infrastructureyear-on-year change*Construction Products Association,Summer 2024 Constru

111、ction Industry Forecasts 20242026.Our marketsOur businesses serve a diverse range of sectors within the UK construction market,along with some sales into niche international markets.The UK market has been subdued over 2023 and 2024,due to political and macroeconomic uncertainty,stretched public fina

112、nces,and high inflation and mortgage costs constraining end customer demand.HousingHousing comprising private and public new housebuilding and repair,maintenance and improvement(RMI)is the Groups largest market,representing circa 48%of Group revenues.2023 and 2024 saw a significant reduction both in

113、 new build activity due to high mortgage costs and in RMI due to cost of living increases constraining household budgets.Although the UK suffers from a structural shortage of houses,a recovery is unlikely to start until mortgage rates fall.The new UK Governments commitment on housebuilding targets s

114、hould provide some support although this is likely to benefit 2026 and beyond.Non-residentialNon-residential work represents circa 25%of Group revenues,and is dominated by work on schools,hospitals,prisons and Government and local authority buildings.2024 saw growth slow,on political uncertainty and

115、 constraints on public finances.Medium-term growth is likely to be driven by work on prisons and the New Hospital Programme.RMI spend is driven by the Public Sector Decarbonisation Scheme and the age of the health and educationestates.Commercial/Industrial/InfrastructureThis sector,representing circ

116、a 27%of Group revenues,typically consists of large office,retail or entertainment venues,warehouses and factories,ports and airports and less important for Alumasc road,rail and utility projects.Over the year,many developments have been constrained by macroeconomic uncertainty and high finance and b

117、uilding costs,leading to delays and project value engineering.Recovery is likely to be slow and dependent on an improving economicoutlook.Export marketsAlumascs access covers and drainage products are also sold outside of the UK,typically into large commercial,industrial and infrastructure projects

118、such as airports,ports and warehouses.As this market is extremely large and diverse,it is difficult to quantify and the main drivers are international specifications and technical support and service.Sustainability in the built environmentWe believe that demand for our sustainability-led products an

119、d solutions tends to be less discretionary and accordingly more resilient through the economic cycle.We also believe that demand for them will tend to grow faster than the overall construction market,supported by more stringent building regulations and legislation covering building decarbonisation,u

120、rban water management and re-greening and building safety.Serving a diverse range of sectorsOur MarketsThe Alumasc Group plcReport and Accounts 202413Strategic ReportFinancial StatementsCompany InformationGovernanceBusiness ModelA sustainable and value-enhancing modelUnderpinned by SustainabilityWe

121、use our resourcesOur people Our passionate and committed workforceKnow-how and expertise Our expertise in manufacturing,sourcing,products and applicationsFinancial resources To invest in value-accretive organic and inorganic growth opportunitiesBrands Strong portfolio of brands differentiated by qua

122、lity and customer serviceExperienced leadership Strong and experienced management teams backed by a culture of empowerment and accountabilityacross our operationsManufacturing capacity Efficient and agile operations,withflexible production capacityCustomer focus Reputation for high quality productsa

123、nd outstanding customerservice and supportAutonomous culture Lean and customer-focused businesses,empowered by an autonomous and entrepreneurialcultureInnovation Continuous innovation focused on new product development to enhance environmental performance and enter adjacent markets,and improve proce

124、ss efficiencyto deliver productsEnvironmentally focused Our products help tackle environmental challenges:Building decarbonisation Urban water management Urban greening for occupant wellbeing and preserving biodiversityHigh quality We manufacture high quality products,which are durable and low maint

125、enance,reducing their whole-life financial and carbon costEmbracing the circular economy We maximise the use of recycled materials,which are then recyclable atthe end of their useful lifeDriving margin improvementChampioning sustainable building productsThe Alumasc Group plcReport and Accounts 20241

126、4Strategic Reportand supporting the SDGsinto our growing marketsAttractive positions We maintain leading positions in our markets,which are supported by long-term growth driversUnderpinned by regulations/specifications Our growth is supported by progressive legislation,building regulations and stand

127、ards targeting environmental performance and building safetyDiverse range of markets We service demand across a diverse range of sectors in the building and construction marketExport growth potential We invest in international sales and support capability to capitalise on worldwide opportunities for

128、 our watermanagement productsto create valueSustainable profit growth Through revenue growth andmargin improvementStrong balance sheet and cash generation Efficient working capital management and strong cashconversion Prudent approach to leverage anddebt facility headroom Disciplined capital allocat

129、ion Investment in organic growth Progressive dividend policy Bolt-on acquisitionsAccelerating organic revenue growthValue-accretive investmentSee pages 52 to 55 for more on our stakeholdersfor all our stakeholdersShareholders We seek to deliver attractive returns for our shareholders from sustainabl

130、e growth in profit and cash flowEmployees We offer rewarding careers with opportunities for training and advancementCustomers We provide our customers with high quality sustainable products and market-leading service and supportSuppliers We foster long-term relationships and adhere to fair terms of

131、businessEnvironment We use sustainable materials and act to reduce our environmental impactsCommunities We create local employment opportunities and support local community groups and charitiesGovernment and regulators We make a positive contribution to the UK economy by paying a fair share of tax a

132、nd complying with laws and regulationsThe Alumasc Group plcReport and Accounts 202415Strategic ReportFinancial StatementsCompany InformationGovernanceOur strategic pillarsChampioning sustainable building products85%portfolio providing environmentalsolutions36%recycled materials81%recyclable material

133、sAccelerating organic revenue growthSales growthOverseas sales growth16.4%sales from new productsDriving margin improvementOperating marginValue-accretive investmentCash conversionSales and profit growth acquiredReturn on investment20242024100.7m13.0m89.1m11.2m89.4m12.7m77.8m10.0m60.3m4.6m71.3m6.7m2

134、023202320222022202120212020202020192019Revenue100.7m+13.0%Underlying profit before tax13.0m+16.1%StrategyAchieving our ambitionsAlumasc Group has successfully repositioned its portfolio,to focus on the design,manufacture and supply of sustainable building products,based around its three divisions:Wa

135、terManagement,Building Envelope and Housebuilding Products.Over the five years ending June 2024,our continuing operations have grown revenues by 41%to 100.7 million;and underlying operating profit by 103%to 13.0 million,representing compound growth rates of 7%and 15%respectively.This performance is

136、despite significant macroeconomic headwinds over 2023 and 2024,which significantly reduced building and construction activity in the Groups coremarkets.This performance was achieved by execution of our strategy,which positions us to outperform general UK construction market growth over the cycle by

137、focusing our resources on sectors and products underpinned by environmental and safety legislation and regulations,and to progressively improve our operating margins through process efficiencies.Our financial strength has allowed us to continue to invest in organic and acquisitive growth overthe per

138、iod while maintaining strong andprogressive returns to shareholders.Underpinned byAchieving our ambitions During 2024,the Board conducted a review of the Groups strategy,focusing on:The continued outperformance of general UK construction markets,coupled with the likely alleviation of demand headwind

139、s from 2025 and beyond;The synergies we expect to generate from the ARP acquisition;Further improvements to Group margin,from a recovery in volumes and further consolidation of our manufacturing footprint;and The significant number of investment opportunities available to the businesses,enabled by t

140、he financial headroom in our balance sheet and from the expected future cash generation.We are targeting revenue growth which outperforms the UK construction sector,together with an sustainable increase in Group operating margins to 15%20%,overthe five years to2030.Our confidence in achieving this a

141、mbitious target,which has the potential to create substantial shareholder value,is based on our performance over the last five years,together with a review of near and medium-term opportunities available to each of our businesses,after applying a prudent level of sensitivity to reflect timing and ex

142、ecution risk.The Alumasc Group plcReport and Accounts 202416Strategic ReportOur strategic aimsStrategic progress in yearFuture priorities Bring new environmental solutions to market Improve our product sustainability(lifespan andrecycled content)Reduce our GHG emissions New environmental products la

143、unched in Roofing(BioSolar)and Timloc(improved loft door design)Recycled content 36%and 81%recyclable GHG emission intensity reduced by 4.7%Scope 3 calculations in place for 75%of Group Expansion of environmental solutions portfolio Further GHG emission reductions SBTi validation of medium and long-

144、term GHG reduction targets(including ARP)Complete EPDs for core product range Market-leading customer service and support Invest in marketing,sales,support,R&D New product development,to grow market share and to penetrate adjacent markets Expansion of our overseas sales and support presence to capit

145、alise on worldwide opportunities for our drainage and access/inspection cover products Improved sales and service representation in key overseas markets Further strategic investments in sales and marketing resource Continually improve efficiency through process automation,capability and capacity imp

146、rovements,and site consolidation Use technology to improve business information and automate routine tasks,focusing employees on value-adding activities Water Management divisional reorganisation ERP and CRM investments Consolidation of Dover site into Halstead Realise synergies provided by the ARP

147、acquisition Realise benefits from investment in ERP/CRM Manage working capital carefully and target strong operating cash conversion Maintain a prudent level of gearing and headroom against our debt facilities Invest in value-accretive organic growth opportunities Cost reduction through process auto

148、mation New product development Capacity and capability improvements Employee development while maintaining a progressive dividend policy and undertake selective bolt-on acquisitions,providing:Scale benefits Complementary technologies Product range extension Complementary routes to market Adjacent ma

149、rket penetration Acquisition of ARP Mechanisation/automation of covers manufacture Dividend increased 4%Employee training programme Invest in product development,automation and people to accelerate profitable growth Consider synergistic bolt-on acquisitionsSee pages 18 to 29 for more on our strategy

150、Sustainability and supporting the SDGsThe Alumasc Group plcReport and Accounts 202417Strategic ReportFinancial StatementsCompany InformationGovernanceSee pages 20 and 21 for more on our Sustainable productsSee pages 26 to 29 for more on our EnvironmentalcommitmentsSee pages 22 to 25 for more on our

151、PeopleSustainability ReportSupporting our purpose and our peopleEnvironmentalSustainability is at the core of our business model.Most of our products are sustainable and are designed to combat environmental challenges facing the built environment.We have a sustainability framework and roadmap that c

152、overs our supply chain,businesses,energy use,and our conduct.Our sustainability approach allows us to plan for the future,to set targets and metrics as part of our journey to net zero.We have also developed key metrics to help us monitor our ESG journey.Our strategy has three pillars:Our ProductsOur

153、 PlanetOur PeopleProportion of revenue from environmental solutions 85%2022/23:89%GHG intensity 18.77tCO2e2022/23:19.69tCO2eDays lost to accidents 52022/23:65Environmental ApplicationsCarbon ReductionHealth&Safety andWellbeingMaterial SustainabilityWaste&PackagingEquality,Diversity&InclusionCode of

154、ConductThe Alumasc Group plcReport and Accounts 202418Strategic ReportSee pages 26 to 29 for more on our EnvironmentalcommitmentsESG targets Roadmap to 2050Roadmap measure2021 data2022 data2023 data2024 progress2030 target2050 targetSustainable productsTurnover derived from environmental solutions77

155、%77%89%85%80%80%Product recycled content27%27%27%36%40%50%Product recyclability74%77%80%81%80%90%GHG emissionsGHG emission intensity123.220.619.718.840%reductionNet zeroWaste reductionWaste diverted fromlandfill99%99%99%100%100%Plastic packagingReduction of preventable plasticpackaging50%55%68%100%1

156、00%Health&SafetyLost days due toaccidents838965500Diversity&InclusionGender diversity23:13:13:13:1Year-on-year improvementEven Board gender split by 20501 Market-based emissions(Scope 1,2&partial Scope 3)expressed as tonnes of CO2 equivalents per m revenue.2 Male:Female.Solar panelsWade have had sol

157、ar panels in place for more than ten years,which provide 40%of the electricity used on site in Halstead.Installation of LED lighting is also underway at the site to maximise energy efficiency.As part of the Energy Saving Opportunity scheme we are looking to replace gas boilers and roll out solar pan

158、elsto other parts of our estate where we own the freehold.How this aligns with our Sustainable Development GoalsTarget settingDuring the year we reviewed and discussed our targets and introduced targets for 2030.As part of our Energy Saving Opportunities scheme,Alumasc visited two sites and we have

159、a range of actions that will help us meet these targets.The Alumasc Group plcReport and Accounts 202419Strategic ReportFinancial StatementsCompany InformationGovernanceThe Alumasc Group plcReport and Accounts 2024Our productsThe majority of our products help to tackle environmental challenges faced

160、in the built environment.Simon DrayGroup Finance DirectorSustainability Report continuedWe manufacture our products using materialswhich achieve the desired balance of environmental and operational performance,costeffectiveness,durability,aesthetics andweight.Our principal materials are metals(prima

161、rily aluminium,steel and iron),polymers(polypropylene and PVC)and roofing membranes andinsulation.Using recycled materials is energy and resource efficient.We work with our supply partners to maximise the recycled content of our raw materials,and invest in equipment to allow our manufacturing proces

162、ses to efficiently use recycled material.The longevity of our products means that products need replacing or repairing less frequently,further reducing the energy needed over a buildings lifespan.The majority of our products are also fully recyclable at theend of their useful lives,contributing to r

163、esponsible consumptionpatterns.MetalsMetals tend to be energy intensive to extract and process,but their durability and almost infinite recyclability helps to offset this.Using recycled metals significantly reduces their carbon footprint in the case of aluminium,recycled material takes up to 95%less

164、 energyto produce than primary aluminium.We therefore seek to maximise the proportion of recycled content in our products as an example,80%of our aluminium is derived from recycled sources.We use metals in demanding applications where their durability meanslower ongoing maintenance and a significant

165、ly longer lifespan than competing/alternativeproducts.PlasticsPlastic products are cheaper and less energy intensive than alternativematerials such as metals,although they are less durable,subject to environmental degradation,are derived from limited petrochemical resources,and many can only be recy

166、cled a number of times before performance deteriorates.Using recycled materials is resource-efficient;80%of the polymers we use are recycled rather than virgin material.We use plastic where cost efficiency is paramount,and inapplications where the products will typically last as long as the building

167、 they are attached to.Roofing membranes and insulationThe membranes and insulation materials supplied by our BuildingEnvelope division help to protect buildings under some ofthe industrys leading warranties while contributing significantly to their energy efficiency.We work with our suppliers to max

168、imise the recycled content and lifespan of our products and systems.Cold-applied and self-adhesive installation methods reduce healthand safety risks and the energy consumed during installation.Wealso supply Olivine mineral membranes which absorb CO2 from the atmosphere and helps to offset a buildin

169、gs greenhouse gas emissions.Alongside blue roof and green roofing technologies we strive to improve construction performance while considering the wellbeing of the people who inhabit and use these buildings.Increasingly we provide non-combustible materials which are beingdemanded by our client base

170、to improve building safety.Our Biosolar systems couple extensive green roofs with photovoltaic cells allowing solar energy generation while creating biodiverse habitats in urban environments.The Alumasc Group plcReport and Accounts 202420Strategic ReportAlumasc recognised with a LSE Green Economy Ma

171、rkAlumasc has been recognised by the London Stock Exchange as a contributor to the global green economy.This is awarded to companies and funds that derive more than 50%of revenues from environmental solutions.We provide high-quality,low carbon,sustainable building products,systems and solutions whic

172、h help manage the scarce resources of energy and water in the built environment and improve the quality of life for the owner/occupier.How this aligns with our Sustainable Development GoalsImproving Efficiency and Sustainability The new Building Safety Act in 2022 enforced the restriction of combust

173、ible materials in the construction of high-rise buildings.To address the newly introduced design requirements,Water Management has developed a fully compliant drainage solution which not only complies with regulations,but also reinforces our commitment to the sustainable development of our product r

174、ange.The system comprises Harmer aluminium threaded roof outlets connecting directly to internal downpipe systems.The introduction of Harmers new aluminium ADPA threaded spigot adaptor facilitates an A1 fire-rated connection of Harmer Roof AV and threaded aluminium rainwater outlets to all types of

175、pipe systems.Its solid aluminium construction ensures it will not combust nor contribute to the spread of fire.This new development presents an efficient and compliant package which also supports our ongoing sustainability commitments.The adaptors are manufactured from uncoated,extruded thick wall 6

176、000 series aluminium,which has 40%recycled content and is 100%recyclable with no loss of quality.Life expectancy for aluminium in rural/suburban areas is in excess of 40 years,and up to 25 years in industrial or marine areas,at the end of which the aluminium elements of the system can be recast into

177、 new aluminium products.Aluminium is an infinitely recyclable material,and it takes up to 95%less energy to produce than primary aluminium.The Alumasc Group plcReport and Accounts 202421Strategic ReportFinancial StatementsCompany InformationGovernanceOur peopleOur number one priority is the Health&S

178、afety and wellbeing of our people.Paul HooperChief ExecutiveHealth&SafetyAlumasc considers Health&Safety and wellbeing of staff as a primary and integral part of its business operations.This is reflected in how we operate our business,to ensure we actively seek to operate best practice in a highly r

179、egulated environment.Health&Safety is always the first item on our plc Board and subsidiary agendas.Allsignificant events are discussed weekly and there is a regular review of near misses.It ensures that Health&Safety is regularly discussed and reviewed.Our target is for zero harm,and we report on l

180、ost days and the learning from any incident.Health&Safety is core to our culture,and we run Health&Safety training programmes for our staff to make sure that this is part of how we operate every day.Our training programmes have been extended as we see Health&Safety reflected in our culture.Training

181、is provided by face-to-face courses and e-learning.During the year,eight people completed NEBOSH courses and 46 people attended IOSH courses.Operating businesses and sites have Health&Safety Committees.We use external consultants to carry out Health&Safety audits and ensure that our processes and pr

182、ocedures are assured and reviewed.Any observations arising from our audits are reviewed and process changes or other matters monitored by management.In addition,we have ISO certificates(ISO 9000,9001 and 14001)in most of our divisions.In addition,Housebuilding Products have ISO 45001 and 45003 certi

183、ficates.Near-miss reporting is encouraged at all levels throughout the business.We also report hazards and lost days.Near-miss reporting has remained at a high level throughout the year.Reporting assists with continual improvements and provides management with information that can beused to improve

184、processes and safe waysof working.The number of days lost due to accidents in the year was five(FY23:65).Sustainability Report continuedOur charitable activities in the year included a donation to Teardrops,in St Helens.Teardrops is a non-profit-making charity supporting the homeless and vulnerable

185、in St Helens.Janey Callaghan from BL successfully completed the IOSH Managing Safely course,which has provided her with new skills and a greater appreciation of H&S in the workplace.#WomenInConstructionWeekThe Alumasc Group plcReport and Accounts 202422Strategic ReportOur main Health&Safety KPI is t

186、he performance rate index(arelative measure capturing the total amount of lost time and othersafety incidents,relating the result to the overall numbers ofhours worked).This figure is used to measure improvement in ourHealth&Safety performance.The cumulative PRI score was 0.76(FY23:3.79),a significa

187、nt improvement and ahead of the Groups internal target in the year.The Group also recognised a twelve month period when no new incidents created a lost time accident.WellbeingWe continue to support employees to ensure they have the right environment,flexibility(where possible),including hybrid worki

188、ng,to improve their work-life balance.The app deployed to assist wellbeing,Help at Hand,provides a 24/7 GP service,counselling,nutrition and lifestyle advice.The benefits hub also provides discount vouchers for a range of goods and services;the app canbedownloaded by all members of staff.A Mental He

189、alth First Aider course is offered,this provides information to help identify and know how to support people dealing with anxiety,stress and other mental healthchallenges.Diversity,inclusion andengagementAlumasc celebrates diversity and inclusion and promotes an equal and fair working environment.As

190、 part of this approach the Board receives reports from the divisions about their progress towards DEI each year.Our divisions conduct staff surveys and interact with staff to solicit their views.The Boardengages with staff at site visits,and through the strategy day,and receives reports of activitie

191、s and actions underway.A central Group newsletter is provided for distribution throughout the Group.An employee recognition programme is in place.Communication with employees take place through face-to-face meetings;employee forums;Social Committees,team projects;andthrough trainingschemes.DEI train

192、ing is provided to staff through e-learning and by in-person training.Support is provided for neurodiverse employees.Alumasc is a menopause friendly employer,with policies and support in place.Our head count by gender is provided in the table below:MaleFemaleTotalNon-executive Director213Executive D

193、irector44Senior managers331246Employees306111418346124470We have taken positive steps on gender balance at some locations.At Housebuilding Products,59%of the staff are female and their local management team now comprises 50%male and 50%female colleagues.Recruitment and apprenticeships Alumasc is an

194、equal opportunities employer.As a business we are committed to providing an inclusive workplace,encouraging and welcoming diversity.Alumasc has zero tolerance to harassment or discrimination in the workplace and are proud to have a friendly culture that is welcoming to all.Training and learning oppo

195、rtunities are provided and we encourage development for all staff.Recruitment,training and development is offered regardless of religion,ethnicity,gender and sexual orientation.Employees with disabilities are given equality of opportunity with respect to entering and continuing employment with Aluma

196、sc.We have examples in the year where adaptations have been made to the workplace or working environment to facilitate opportunities for disabled staff.Should employees become disabled after joining the Company,every effort is made to ensure that employment continues,and appropriate training is give

197、n.A formal Equality and Diversity Policy has been approved by the Board and applies to the business.Alumasc wants and recognises the value of having the widest range of experience,knowledge and skills.Management undertakes reviews of staff performance and recognises their achievements.Career progres

198、sion is extremely important to the Company for succession planning and resilience.Promotions are usually announced at the end of the financial year.“We had a fantastic Apprenticeship Open Day at our Halstead Site on 1 May 2024.Colchester Institute collaborated with us and Level 2 students visited Wa

199、de in Halstead to find out all about Wade and the exciting work we do.Wade were recruiting for the apprenticeship vacancies we have available”.Charlie Kitson,Operations Manager,HalsteadThe Alumasc Group plcReport and Accounts 202423Strategic ReportFinancial StatementsCompany InformationGovernanceOur

200、 people continuedSustainability Report continuedCultureSustainability is core to our purpose and our business.We want to employ talented,diverse teams who can focus on growth and innovation.The Board seeks to set the culture and to align our purpose,strategy and behaviours to be Alumascs culture.Wei

201、mplement our strategy through our people and have a positive environment that promotes wellbeing and employee engagement.The people in the business need to have a common group purposebut also operate locally,where they are empowered to act.Ourpeople know their customers and are experts in the field

202、andthey need to respond to our customers needs.Code of ConductExpected ethical standards and behaviours are covered by our Code of Conduct and Employee Handbook.We expect employees to have a high degree of integrity and for them to be honest and trustworthy.All new hires are provided with a copy of

203、our Code of Conduct,and we remind staff of these requirements through training and briefings.Anti-modern Slavery and Human TraffickingAlumasc regularly reviews its Anti-modern Slavery Statement and Policy,these are published in the UK on the UK Government website and on Alumascs website in accordanc

204、e with Home Office Guidelines,along with our previous disclosures.Our statement for this year will be published in accordance with Government requirements before the deadline.Alumasc expects its suppliers and those in the supply chain to confirm that they have the same or similar policies in place f

205、or anti-modern slavery.Anti-bribery and corruptionWe have a zero-tolerance approach towards bribery and corruption.Our Anti-bribery and corruption policy is straightforward and gives clear advice on Alumascs compliance standards and ethical requirements.In addition,we have clear policies and standar

206、ds for any gifts or hospitality.Our whistleblowing policy is clear,and we have a SpeakUp line.There is an annual report to the Audit Committee on whistleblowing and our anti-bribery programme(seepage 73).Please use the QR code to find out more on our website www.alumasc.co.ukLoft-y Donation to HullS

207、amaritans A donation of 2,500 was made by Timloc to their charity partner,Hull Samaritans.For every sale of a Timloc plastic loft door throughout the months of November and December 2023,a donation was made to help benefit the vital work of the charity.This donation supports UN Sustainability Goal (

208、UN SDG)3,to ensure healthy lives and to promote wellbeing.We cannot thank you enough for your generosity.This is a major donation for us and will really help us in the running of the branch.We are totally self-funded and run by volunteers,so it will give us more time to do the thing that we are mean

209、t to do listening to ourcallers.DuncanDirector at Hull SamaritansThe Alumasc Group plcReport and Accounts 202424Strategic ReportPride MonthAt Housebuilding Products,they celebrate and champion diversityand inclusion every day.This Pride Month,they stood insolidarity with the LGBTQIA+community,embrac

210、ing love,acceptance,and equality.Social added valueIn April 2024,Alumasc started using software from Social Compliance Chain(SCC)to record the social added value of ouractivities in the community and to protect theenvironment.Social Compliance chain use figures and sources,including,amongst others:U

211、nit Cost Database(providing the Gross ValueAdded,to establish the value added per 1 spent);Office ofNational Statistics(for a cost benefit analysis;this is used for most proxy values to provide SCC with a monetary()valuefor each activity);Office of Qualifications andExaminations Regulation(OFQUAL)fo

212、r figures relating to gaining qualifications and not claiming benefits;Power to Change(market research)paired with Office of National Statisticsdata(for volunteering hours and providing median annualincome to equate to an hourly rate).SCC streamlines measures,offering the ability to report across th

213、e board on all oursocial value capture with designated values.SCCs data iscertified by the Social Value Taskforce.Each activity on the Social Compliance Chain is given a social value,and these cash values can be used to monitor and track our progress and for the business to set targets.Alumasc score

214、s highly for:Employing local people;Recycling and diverting waste from landfill;Promoting wellness training and initiatives;Running training courses for employees and apprentices;and Supporting community projects and initiatives.CommunitiesWe aim to be close to our local communities,supporting staff

215、-nominated charities,sports and local groups.Many of our employees live close to our offices,factories and operational sites and they are motivated through support for local groups and charities.This positivity about our communities also helps to promote wellbeing and local pride.We are looking to d

216、evelop this further and are currently recording our support for local groups through Social Compliance Chain(see next column).Mental Health Awareness WeekTo mark the start of Mental Health Awareness Week,running 1319 May,Team Timloc(Housebuilding Products)took part in the Wear it Green campaign to r

217、epresent their commitment to mental health awareness.This is an annual event that aims to raise awareness about mental health issues and promote understanding and support for mental wellbeing.They also raised money for the Samaritans(see page 24).The Alumasc Group plcReport and Accounts 202425Strate

218、gic ReportFinancial StatementsCompany InformationGovernanceWhile the inclusion of ARP means the Groups GHG emissions have increased in absolute terms,GHG emission intensity reduced by 4.7%compared to the prior year,slightly ahead of the 4%reduction targeted for the year.Since 2018,Alumascs GHG emiss

219、ion intensity has reduced by 70%:a result of the Groups investments in efficient plant and machinery;site rationalisations;installation of solar PV panels;gradual electrification of the Groups vehicle fleet;and sourcing 100%of the Groups electricity from renewable sources.Our near-term targets,estab

220、lished last year and consistent with the Science Based Target initiative(SBTi)targets for limiting global warming to below 1.5c,are currently being recalculated for the inclusion of ARP.Once completed,these will be verified with the SBTi and used to monitor our progress towards company-level net zer

221、o by 2050 orearlier.The publication of Environmental Performance Declarations(EPDs)across the Groups product range is underway.These reports detail a products lifetime environmental impact,including its carbon footprint,ecotoxicity and contribution to ozone depletion,and allow customers to compare d

222、ifferent suppliers and materials.The exercise is planned to complete during 2025,with the data also being used to guide future product design and procurement decisions around our supply chain and sourcing.Energy efficiency actions taken and plannedAs part of our programme to reduce our GHG emissions

223、,this year we have:Increased the proportion of electric vehicles in our managed fleet;Converted 85%of lighting at our Halstead site to LEDs with PIR sensors(the remainder will be converted over 2024/25);Fitted two new energy efficient boilers(Halstead);We have reduced our GHG emission intensity by69

224、%since 2018.Simon DrayGroup Finance DirectorOur planetSustainability Report continuedAlumasc has partnered with Compare Your Footprint/Green Element,a leading carbon energy management company and sustainability advisers,to independently assess our greenhouse gas(GHG)emissions in accordance with the

225、UK Governments Environmental Reporting Guidelines:including streamlined energy and reportingrequirements.The assessment used the 2024 emission factors published by the Department of the Environment,Food and Rural Affairs(DEFRA)and the Department for Business,Energy&Industrial Strategy(BEIS).The asse

226、ssment conducted follows the GHG Protocol Corporate Accounting and Reporting Standard and GHG Protocol Scope 2 Guidance,involving the reporting both location-based and market-based emissionsfrom electricity usage.GHG emissions and net zeroThe table on page 27 summarises Alumascs GHG emissions for th

227、e reporting year 1 July 2023 to 30 June 2024.Data for ARP has been included for the period following its acquisition in December 2023.The table covers direct emissions(Scope 1 and Scope 2)and those associated with employee expensed business mileage,and is expressed in both in absolute terms and per

228、million of revenue,which is the most appropriate method to capture levels of business activity.Continued to reduce business travelby using videoconferencing,whereappropriate;Continued to upgrade to more efficientplant and machinery,and to reduce energy costs by reducing running times;and Continued t

229、o purchase 100%of our electricity from renewable sources.Our Halstead site is planning to replace their air conditioning with more energy efficient units in late 2024;and the closure of our Dover site,and relocation of its activities to Halstead,will continue our commitment to improve efficiency and

230、 energy usage.Scope 3 emissionsFull Scope 3 calculations,covering emissions generated by our entire value chain,have now been completed by business covering approximately 75%of the Groups proforma turnover.While there is currently no regulatory requirement to publish Scope 3 emissions,they are impor

231、tant in understanding our overall environmental impact and developing our net zero plans.Our initial observations confirm that the majority of our Scope 3 emissions arise from the processing of our raw materials,with freight and transportation the next largest source.The key opportunities to reduce

232、Scope 3 emissions are increasing the recycled proportion of purchased raw materials,working with our suppliers to reduce their own carbon footprints,and moving to lower emission methods of goodstransportation.Our focus for the coming year will be on completing and refining the calculations across th

233、e whole Group,setting reduction targets,and in supporting our businesses as they develop their own detailed Scope 3 decarbonisation plans.The Alumasc Group plcReport and Accounts 202426Strategic ReportStreamlined energy carbon reporting(SECR 2023)Mandatory reporting as follows:Streamlined Energy and

234、 Carbon Reporting(SECR)FY23FY24Year-on-year change(%)Energy Consumption(kWh)Electricity 3,066,029.73 3,268,550.93 6.6%Gas 6,303,347.24 6,301,374.69 0.0%Transport fuel 1,030,544.35 1,181,625.92 14.7%Other fuels*185,313.86 209,545.55 13.1%TOTAL CONSUMPTION 10,585,235.18 10,961,097.10 3.6%GHG Emissions

235、 Breakdown(tCO2e)Scope 1 Combustion of gas in buildings 1,153.06 1,152.52 0.0%Combustion of fuel for transport purposes 141.29 178.01 26.0%Combustion of other stationary fuels 39.64 44.95 13.4%Scope 2 Purchased electricity(location-based)634.90 676.756.6%Purchased electricity(market-based)*65.49n/aE

236、lectricity used for transport purposes*1.37 4.05195.6%Scope 1&2 Total Scope 1&2 emissions(location-based)1,970.26 2,056.28 4.4%Total Scope 1&2 emissions(market-based)1,335.36 1,445.02 8.2%Scope 3 Business travel in rental or employee-owned vehicles whereCompany is responsible for purchasing the fuel

237、 139.58 129.81-7.0%Upstream transport and distribution losses and excavation and transport of fuels(location-based)440.20 466.80 6.0%Upstream transport and distribution losses and excavation and transport of fuels(market-based)279.82 315.63 12.8%Total GHG Emissions(tCO2e)TOTAL EMISSIONS(location-bas

238、ed)2,550.04 2,652.89 4.0%TOTAL EMISSIONS(market-based)1,754.76 1,890.46 7.7%Intensity Ratios Metrics Revenue million 89.14 100.72 13.0%Location-Based GHG Emissions per million(tCO2e/million)28.61 26.34-7.9%Market-Based GHG Emissions per million(tCO2e/million)19.69 18.77-4.7%Location-Based(Scopes 1&2

239、 only)GHG Emissions per million(tCO2e/million)22.10 20.42-7.6%Market-Based(Scope 1&2 only)GHG Emissions per million(tCO2e/million)14.98 14.35-4.2%Methodology:GHG Protocol Corporate Accounting and Reporting StandardCertification and External Verification:Calculated by Green Element Limited and Compar

240、e Your Footprint Limited,UK.*Figure revised from previously stated FY23 SECR report owing to real(rather than estimated)data becoming available.*The supplier-specific fuel mix was not available for one site,and so the UK residual factor was used.The government data required to calculate the UK resid

241、ual factor is not available until August 2024,and so the calculation defaulted to using the 2023 residual factor.*Electricity associated with electric and plug-in hybrid company cars has been split out from Alumascs last SECR report,and also revised with the new assumption that 80%of cars(and mileag

242、e)are assumed to be charged at Alumasc sites(for which electricity consumption is already captured).The Alumasc Group plcReport and Accounts 202427Strategic ReportFinancial StatementsCompany InformationGovernanceWaste andpackagingScrap and wasteOur manufacturing operations produce very little raw ma

243、terial waste,as it is typically collected,reprocessed and reused in our production processes.Timloc,our most intensive user of plastics,is a signatory to Operation Clean Sweep,an industry-led programme to prevent plastic particulates from reaching the environment.Substantially all of our waste strea

244、ms are now diverted from landfill.PackagingThe majority of waste we produce is in the form of packaging.We are a member of Valpak for compliance reporting and complywith our obligations under the Producer Responsibility Obligations(Packaging Waste)regulations.Environmental highlightsGHG reduction th

245、is year 4.7%Reduction in total market-based emission intensityGHG reduction since 2017/1870%Reduction in total market-based emission intensityIncreased uptake in fleet electric vehicles this year20%We will focus our attention on the following environmental and sustainability goals:AreaRelated risksA

246、lignment to SDGsCarbon and energyreduction Climate change Environmental harm Legal and regulatoryWaste management andrecycling Environmental impact Sales costs Raw materials Legal and regulatoryPeople and wellbeing Legal and regulatory Climate changeOur planet continuedSustainability Report continue

247、dDefinitions of Scopes 1,2 and 3 in the SECR table Scope 1:Fuel used in company vehicles Office consumption of natural gasScope 2:Purchased electricity(location-based*and market-based*)methods were included this way of dual reporting is outlined in the GHG Protocol Corporate Accounting and Reporting

248、 StandardScope 3:Business travel in employee-owned or hired vehicles Indirect emissions associated with the upstream production,processing and delivery of any fuel used,and losses due to the transmission and distribution of electricity Types of GHGs included,as applicable:CO2,N2O,CH4,HFCs,PFCs,SF6,a

249、nd NF3.The greenhouse gas emissions were calculated using UK Government 2022 conversion factors,expressed astonnes of carbon dioxide equivalent(tCO2e)Definitions of Location-based electricity and Market-based electricity*Location-based electricity(Scope 2):emissions use the average grid fuel mix in

250、the region/country where the electricity was purchased and consumed.For SECR,location-based is mandatory.*Market-based electricity(Scope 2)emissions use fuel mix that is specific to the purchased electricitys supplier and tariff.Where supplier-specific fuel mix data is absent,UK National Grids resid

251、ual fuel mix was used,in accordance with the GHG Protocol.For SECR,market-based isoptional.We have targeted a reduction in single-use plastics and an increase in the proportion of recycled packaging we use.Our Housebuilding Products division and Wade and Rainclear,within the Water Management divisio

252、n,now exclusively use packaging made from 100%recycled paper for shipping,which is itself 100%recyclable.We continue to implement measures to reduce the quantity of packaging used andto improve its recyclability.Supply Chain School of SustainabilityAs part of our procurement and management of materi

253、als,sustainability leads have joined the Supply Chain School of Management.See page 27The Alumasc Group plcReport and Accounts 202428Strategic ReportExpanding our electric vehicle fleet As part of our drive to reduce emissions we have been increasing the number of EVs in our fleet.For example,our Bu

254、ilding Envelope division have increased EVs from 8 cars to 16 cars within the fleet,this equates to 17%of Building Envelopes total mileage in EVs(FY23:8%).Overall,the Groups fleet of electric vehicles increasedby 20%in the year.How this aligns with our Sustainable Development GoalsHow this aligns wi

255、th our Sustainable Development GoalsThis product supports the UN SDG 15,to protect,restore and promote sustainable use of terrestrial ecosystems and to halt biodiversity loss.This aligns with the UN Sustainable Development Goal(SDG)9 as it supports the building of resilient infrastructure and Sustai

256、nable Industrialisation.It also supports SDG 11 to build safe,resilient and sustainable cities.Responsible use of packaging supports UN SDG 12,by ensuring sustainable consumption patterns.How this aligns with our Sustainable Development GoalsGlobal recycling dayAlumasc supports recycling of paper an

257、d cardboard and other items in our offices,our factories also recycle scrapped aluminium and steel.Werecently confirmed our support for#GlobalRecyclingDay.Our ambition is to have zero waste going into landfill.Hedgehog highwayFollowing building regulation changes,housing developers are encouraged to

258、 add 13cm holes at the base of fences in all new developments to create hedgehog highways.The Hedgehog Highway by Timloc was created to frame these fence holes,ensuring unobstructed pathways and connecting gardens to allow hedgehogs to roam freely and forage for food,water and shelter.As hedgehogs a

259、re now classified as vulnerable to extinction,the Hedgehog Highway also helps bring awareness to the species decline.With each purchase of a Hedgehog Highway by Timloc a donation is made to hedgehog charities and rescues to help them continue their vital work.So far Timloc has donated over 2,500 to

260、hedgehog rescue organisations across the UK.Recyclable Packaging at Housebuilding ProductsAt Housebuilding Products,the majority of products are delivered in cardboard packaging.Approximately 70%of this packaging is produced from recycled materials,and the entire packaging range is designed to be re

261、cyclable.All bagged Timloc products,such as access panels and soffit vents,are packaged in 100%recyclable low-density polyethylene bags.LDPE(low-density polyethylene)100%recyclable Cardboard 100%recyclableThe Alumasc Group plcReport and Accounts 202429Strategic ReportFinancial StatementsCompany Info

262、rmationGovernanceTask Force on Climate-related Financial Disclosures(TCFD)In these challenging times,marked by increasing greenhouse gas(GHG)emissions and a record 12-month continuous average global temperature of 1.5C above pre-industrial levels,Alumasc remains committed to reducing GHG emissions a

263、nd innovating sustainable products to mitigate climate changes impact on the built environment.We are collaborating with our supply chain partners and vendors to move towards a decarbonised future which meets the Governments goal of achieving net zero emissions by 2050 or earlier.We recognised clima

264、te change as our first principal risk in 2022 and published our first voluntary TCFD disclosure in 2021.We have worked with our climate change experts,Green Element,to gather data and to help us with our climate-related risk analysis.The table below lists the TCFD pillars and their 11 associated rec

265、ommended disclosures.The following sections provide a summary of our achievements during the financial year and our plans for the upcoming year.TCFD pillarsGovernance Disclosure of the organisations governance of climate-related risk and opportunities.Strategy Disclosure of the actual and potential

266、of climate-related risks and opportunities on the business,strategy and financial planning,where such information is material.Risk management Disclosure of how the organisation assesses and manages climate-related risks.Metrics and targets Disclosure of the metrics and targets used to assess and man

267、age relevant climate-related risks and opportunities where such information is material.Required disclosure Board oversight.Managements governance.Risks and opportunities.Impacts on the organisation.Resilience of strategy considering climate scenario analysis.Risk identification and assessment proce

268、ss.Risk management processes.Integration into overall risk management process.Climate-related metrics.Scopes 1,2&3 GHG emissions.Climate-related targets.Further informationPages 60 to 67See Strategic Report pages1 to 66Principal risks pages 47 to 50.Principal risks pages 47 to 50 and climate-related

269、 risks pages 31 to 34.Page 34 and in the Remuneration Report pages 74 to 78.We are reducing our greenhouse gas emissions and responding to the future risks and opportunities related to climate change.The Alumasc Group plcReport and Accounts 202430Strategic ReportGovernanceA.Boards oversight of clima

270、te-related risks and opportunities:The Board is responsible for the risk reviews(see page 64)and for receiving regular reports on ESG activities and initiatives at all Board meetings.Assessment of risks and opportunities form part of Alumascs strategic planning process.Climate-change-related product

271、s are a key focus for our teams at our Group Strategy meetings,the most recent of which was on 21&22 February 2024.We have internal reviews as well as external reviews with our professional partners to continually evaluate our approach.B.Managements role in assessing and managing climate-related ris

272、ks and opportunities:Management has a key role in risk assessments as climate-related risk is part of our overall risk management process(see page 64).At Divisional level we have appointed Leads and Heads of Sustainability.Regular reports are submitted to Divisional Boards,and data is collated highl

273、ighting the steps taken to ensure we are identifying and mitigating transition and physical risks and communicating this to theBoards.The table below shows how climate-related matters are considered throughout the Group governance structure.Climate-relate risk governance frameworkThe Board Reviews t

274、he Groups sustainability and risk strategy and performance:Considers both GHG emissions,risk management and climate-related risks and opportunities,metrics and net-zero strategyAudit CommitteeRemuneration CommitteeNomination Committee As part of the audit,the SECR table and related disclosures are r

275、eviewed.Internal Audit and compliance reviews.Policies reviewed.Sets climate-related targets for senior employees remuneration arrangements.Considers the range of skills and experience that the Board has and will need.Impacts of climate change are considered as part of the process.Subsidiary boards

276、and divisions consider the necessary steps via working groups and teams.There are structured plans,risk registers and reporting lines for the metrics.StrategyA.Climate-related risks identified over the short,medium,and long term:Alumascs climate change risk and opportunity analysis continues to evol

277、ve.This year we have analysed some of the short and medium-term impacts relevant for our UK operations.In line with TCFD guidance we have identified both transition and physical risks which are relevant for our business over three time horizons(see page 33),as follows:Time horizonTime periodDetailSh

278、ort term03 yearsThere is existing climate strategy and legislation for the built environment in place for this time horizon and it aligns with our three-year plans.We develop and sell products to help customers mitigate the most immediate physical impacts.Medium term310 yearsWe are planning to align

279、 this with our own science-based target data and we look to sell products that have been specified to mitigate some of the foreseen impacts.Further legislation is most likelyto introduce new product specifications to reduce the impact within this time horizon.Long term10 yearsBecause longer-term imp

280、acts mainly consist of estimated forecasts at a global level we are mapping our strategy to 10+years rather than out to 2050.Risk mapping to 2050 allows us to consider what risks may arise.However,the full impact is unknown.The Alumasc Group plcReport and Accounts 202431Strategic ReportFinancial Sta

281、tementsCompany InformationGovernanceTCFD continuedScenario analysisOur impacts and risks were assessed using a range of climate change scenarios to test both our strategy and business model under the impact of climate change.We considered climate risks on the scenarios outlined in the table below.We

282、 are developing mitigation strategies in response to each risk identified.The assessment of risk was guided by scenarios discussed with the business and also those available from outside agencies (Met Office UKCP18).We looked at three climate change scenarios,ranging from 1.5c to 3c global warming,i

283、ncorporating both physical climate risks(the direct impacts of climate change on our operations)and transitional climate risks(risks associated with the business transitioning to a low-carbon economy).For the summary of climate-related material risks and opportunities see below and on www.alumasc.co

284、.uk.Potential materiality(%)Strategic response and mitigations202330(short term)203140(medium term)204150 (long term)Scenario 11.5CSome changes have taken place and to achieve this goal there has been an unprecedented change in behaviour.Key risk:Transition.Key opportunity:Support clients to transit

285、ion.Supply chain:Manufacture of goods within the UK mayhelp customers meet their climate change targets.Near-sourcing of materials may reduce the carbon cost oftransportation across the supply chain.Operations:Availability of EPDs will allow comparison of the whole-life carbon cost of products and h

286、elp promote our durable and sustainable ranges.Customers and markets:Expected greater demand for lower carbon products from RMI and low-carbon homes and customer engagement is critical.Scenario 1.52CSome challenges to mitigate.Key risks:Acute physical through supply chain vulnerabilities,power inter

287、ruptions and flood risk.Investment in R&D to develop new products and to research new materials for use in the built environment that provide greater climate resilience and/or are more sustainable.Scenario 23CHigh degree of challenges to mitigation.Further development of new products and innovation

288、to provide resilience to cope with the changing environment.Greater challenges to mitigate.Key:=25%Consideration has been given to:IEA(the International Energy Agency)scenarios and pathways based on assumptions about how the energy system may be used RCP(Representative Concentration Pathways)to asse

289、ss physical climate risk.There are different degrees of impact under RCP 2.6 andRCP 8.5 and the financial impacts are deemed to be the same IPCC(Intergovernmental Panel on Climate Change)provides RCPs that are accepted as reference scenarios that outline potential consequences of climate changeB.Imp

290、act of climate change risks on business,strategy,and financial planning:We produce sustainable building products that help address and mitigate climate impacts on the built environment,and continually assess our products,supply chains and operations to reduce our impact on the environment as much as

291、 possible.To achieve our ambitions,we are committed to reducing GHG and capitalising on product and market opportunities.We are obtaining EPDs for our key products,to provide our customers with the necessary information to calculate their environmental impact,including their embodied carbon.We have

292、science-based targets to help us navigate the journey to net zero,which will be accredited by the SBTi later in the year.C.Resilience of strategy,taking into consideration different climate-related scenarios,including 2C or lower:We consider that there are no material physical or transition climate

293、risks to our business in the short term(03 years)that have not been mitigated in our Business Continuity Plans;only opportunities.Our products combat climate change and our strategy is to champion their use.We produce products that help protect the environment,and improve the climate resilience of t

294、he built environment(see pages 6 to 9,and 20&21).The Alumasc Group plcReport and Accounts 202432Strategic ReportWe also look to continually develop new products to help our customers manage climate-related risk in the built environment.Our product development activities anticipate future climate-rel

295、ated regulation and the potential for carbon-related regulations.Transition risksRisk descriptionFinancial driverManagements responsePolicy and legalGovernment drivers for net-zero have effectively established pricing etc.to curb GHG emissions.Increased fuel and energy duties may impact the supply a

296、nd distribution chain and our manufacturing processes.Potential increase in cost of sales.Time horizon:Short to medium term.We are reviewing our supply chain,to identify ways to improve its efficiency,while engaging with our supply and distribution chain partners to understand their own net zero pla

297、ns.Manufacturing efficiency is a key part of our capital expenditure plans,to reduce costs and energy consumption.Emerging regulationsWe anticipate increasing focus on the drive to net zero.The UK Government has a net zero target and has prioritised energy transition and net zero policy,with 2050 th

298、e deadline for zero carbon electricity and close alignment of carbon taxes and green finance with the EU.Time horizon:Short to medium term.See Strategic Report pages 1 to 52.We continually innovate to improve the environmental credentials of our product portfolio,and have our own net zero plan which

299、 will meet or exceed the UK Governments 2050 target.TechnologyThe transition to a low carbon culture will mean the adoption of energy-efficient machinery.Energy and cost efficiency from new equipment.Plans for capital expenditure.See our Strategic Report on pages 8,11&12,16 to 17,and 46.We prioritis

300、e manufacturing efficiency,and energy consumption is a key factor in our plant replacement and upgrade programmes.MarketGovernment policies will drive markets to demand more low-carbon products.Potential for increased sales of sustainable products.We prioritise the use of recycled materials to manuf

301、acture our products,which are durable and low maintenance,decreasing their whole-life energy cost.We engage with our customers and reflect their requirements and climate change drivers in our product development plans.Risk managementProcesses for assessing climate-related risk.A.Approach for identif

302、ying and assessing climate-change-related risks:Climate-related risk assessment is part of our annual risk review process and Business Continuity Plans.We ask each division to record these risks,together with any actions taken to mitigate their likelihood or impact,and these are reviewed by the divi

303、sional Boards and at Group level.With our partners,Green Element,we confirm that we have considered all the factors relating to these risks and to ensure our risk register is kept up to date.We have also looked at the opportunities relating to climate-related risk and consider these in our new produ

304、ct development programmes.Details of our strategy in action can be found on pages 6 to 9.We adopted science-based targets for Scope 1 and2 GHG reduction in 2023,and are in the process of updating these for the acquisition of ARP,and collating our Scope 3 emissions data.Our net zero targets will be s

305、ubmitted for SBTi accreditation later this year.B.Processes for managing climate-related risks:Transition risks:We have,as part of the Energy Saving Opportunities Scheme,identified ways to reduce our GHG emissions,with new machinery,solar panels,renewable energy,and greater use of electric vehicles.

306、Physical risks:Following the quantification of climate-related risk in 2023/24,the risk of flooding and wildfires were also considered.We have considered our products and strategy in light of these potential changes.The Alumasc Group plcReport and Accounts 202433Strategic ReportFinancial StatementsC

307、ompany InformationGovernanceThe Alumasc Group plcReport and Accounts 2024The Alumasc Group plcReport and Accounts 2024TCFD continuedC.Processes for identifying and managing climate-related risks are integrated in the organisations overall risk management:Climate-related risk is our first principal r

308、isk(see page 47)and it is integrated into our risk management framework,forming part of the evolving risk landscape along with other key risks.Priorities for 2024/25How these have been/will be deliveredReferencesReview the climate-related risks and integrate the impacts of climate change into ourstr

309、ategy,new product development and financial analyses.A refresher workshop held and review of the risks has taken place,with follow-up workshops planned during the year.We have integrated our climate-related risks within the Group-wide risk register process.See page 46.Climate-related scenario risks:

310、Continued review of these with further focus on the acute and chronic physical risks.This will inform the combined risk approach for our new product innovation plans.We are planning further Sustainability Lead meetings from our businesses and we will be incorporating climate-related risk reporting i

311、nto our risk management process.Divisional leads have their own committees that are focused on ESG.See pages 32 and 33.Supply chain resilience:We are training and providing additional know-how on improving resilience and enhancing our supplier questionnaires to evaluate sector exposure and resilienc

312、e.Sustainability leads in the business and procurement personnel have joined the Supply Chain School of Sustainability.We are reviewing our supply chains and engaging with our partners to ensure efficiency and to manage emissions.See page 28.Impact assessments and scenario analysis:These will be fur

313、ther developed in 2024/25.The impact assessments provide detail of the climate-related risks identified for the business.This will be reviewed again in 2024/25 as part of our Sustainability and reporting plans.See page 32.Metrics and targets:A.Metrics used to assess climate-related risks and opportu

314、nities in line with its strategy and risk management process;and B.Targets used to manage climate-related risks and opportunities and performance against targets.We are using metrics and targets to monitor our performance(see pages 19,74,78 to 79).The metrics are part of the way we monitor our progr

315、ess and address climate risk and opportunities for the Group.Our responses are focused on areas where we can have the most impact and be most efficient in our approach to climate-related risks.Priorities for 2026Our plansHorizon scanning for future risks and opportunities.We will ensure that our cli

316、mate-related plans and risks are incorporated into the Boards rolling agenda.Our divisional Board meetings and the information is shared top-down.Metrics and targets.Our existing science-based targets for Scope 1 and 2 emissions reductions are being revised for the inclusion of ARP,which was acquire

317、d during the year.The final data for the full Scope 3 emissions data has been collected and we are in the process of setting reduction targets for all our businesses.Once collated and updated,we will seek SBTi accreditation for our net zero targets.34Strategic ReportThe Alumasc Group plcReport and A

318、ccounts 202434Non-Financial Information StatementThe table below provides the non-financial information required by Section 414CB of the Companies Act 2006 and highlights where the references can be found:Non-financial information reporting requirement Development and actionsFurther InformationBusin

319、ess modelSustainability is our focus,our model for products to tackle climate-related risk challenges in the built environment.Pages 14 to 15Description of management of principal risks and impact of business activityFull description of key risks and our risk assessment processes.Climate-related ris

320、k register has been developed.Pages 46 to 50See www.alumasc.co.ukEnvironmental matters Climate change principal risk Providing sustainable solutions for thebuilt environmentSolutions to help solve environmental challenges of our customers resulting from climate-related change.Seek to reduce emission

321、s with targets for year-on-year reductions.Reductions in material to landfill.Pages 6 to 9,and 47Employees Health&Safety,and wellbeing Engaged,motivated,and diverse workforce Training and development ApprenticeshipsFocused on the Health&Safety and wellbeing of staff,motivation,and retention.Motivati

322、ng and making employees feel engaged and promoting a transparent and open culture.Recruiting and retaining a diverse workforce is critical for the Groups sustainability and innovation.Pages 22 to 25,and 52Social and community Developing sustainable long-term actions Brand awarenessAs a responsible b

323、usiness,we promote sustainable operations and ensure our operations respect the environment.We encourage employees to raise funds for local groups and charities.Pages 52,54,and 55Respect for human rights Ensuring compliance with legislation and protecting peopleThe Group does not have a separate hum

324、an rights policy;however,we have an Anti-slavery and Human Trafficking Policy and this can be found on our website.The Group has a zero-tolerance policy to modern slavery and human trafficking.We provide training to staff to help identify any incidence of forced labour.See www.alumasc.co.ukPage 24An

325、ti-bribery and anti-corruption Promoting ethical behaviourThe Group has a zero-tolerance policy for any form of bribery or corruption.The Groups Anti-Fraud Policy was reviewed and updated.Pages 24 and 73The Alumasc Group plcReport and Accounts 202435Strategic ReportFinancial StatementsCompany Inform

326、ationGovernanceOperating SegmentsI am delighted that ARP Group have joined Alumasc and are now part of the Water Management Division.Paul HooperChief Executive and Water Management Divisional Managing DirectorAlumasc Water Management Solutions(AWMS)delivers integrated water management solutions for

327、a sustainable future.Alumasc hasbeen promoting the efficient use,retention,recycling and disposalof water for over 90 years.Under the AWMS banner,customers benefit from rainwater and drainage products that capture,retain and control the flow of rainwater in the most effective way inside and outsideb

328、uildings from origination source to water course,sewer or ground.We are buildingon our methods,processes and delivery with the acquisition of ARP Group.Growth drivers Legislation aimed at conservation,attenuation and control of water Structural engineering specifications Building regulations Sustain

329、able drainage Sustainable and durable productsOperations and supply chain UK in-house manufacture Worldwide supply chain,including suppliers in Europe and North America Supply chain efficienciesRoutes to market Merchants and distributors (some via preferred installers)Direct to customer via online d

330、igital platforms Sales to contractorsOpportunities and potential Outperformance of the UK construction market through continued market share gain and introduction of new productsandsystems Development of products and opportunities for a sustainable future Increase divisional export sales with focus

331、on systems using Gatic and Wade products Grow operating margins through new product introductions,improving customer service and operational efficiency Selective bolt-on acquisitions that provide synergies,new products and access to new channelsWater ManagementRevenue48.3m2022/23:39.8m Underlying op

332、erating profit*7.6m2022/23:5.8mUnderlying operating margin*15.8%2022/23:14.5%Operating profit6.8m2022/23:5.6mFinancial highlights 2023/24*Prior to restructuring costs of 0.6 million(2022/23:0.1 million)and acquired IA amortisation charges of 0.2 million(2022/23:0.1 million).The Alumasc Group plcRepo

333、rt and Accounts 202436Strategic ReportAlumasc Skyline and Rainwater package specified at Weston-Super-Mare HospitalWeston General is part of the University Hospitals Bristol and Weston NHS Foundation Trust(UHBW).It is located in the Uphill area of North Somerset,serving a resident population of around 212,000,and over 3 million visiting tourists every year.The 1980s building has benefited from a r