Alumasc says contractor’s collapse has knocked confidence in sector

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Building products firm Alumasc has warned that profit will be down this year with confidence in the industry knocked by Carillion’s collapse two months ago.

The firm, which make solar shading, roofing systems and guttering, said demand for its products had fallen in the third quarter because of delays in building contractors committing to new work because of pressures on margins.

It added these had been “exacerbated by the insolvency of Carillion and the consequential impact across the industry”.

The firm also said it had been hit by delays on housing refurbishment contracts in Scotland as well as recent problems caused by severe winter weather.

In a trading statement, it said revenue for the year ending June would be up to 5% below expectations with underlying pre-tax profit down by 15% on expectations.

In the year to June 2016, Alumsac posted a 14% rise in revenue to £105m with underlying pre-tax profit up 9% to £9m.