The Alumasc Group plc  Report and Accounts 2003
premium engineering and building products supported by quality solutions and service The Alumasc Group plc
The Alumasc Group
Building on a
foundation of efficient
manufacturing and
informative marketing
supplemented by
product innovation
Alumasc’s objective is to build market leading companies in premium
engineering and building product sectors differentiated by high added value,
service and know-how.
Alumasc aims 
● To grow its operations within a decentralised, achievement orientated and 
overhead resistant management structure.
● To foster lasting relationships built on quality, solutions, service and trust.
● To achieve above average sustainable growth in its earnings per share.
Contents
1 Annual Highlights
2 Chairman’s Statement
3 Chief Executive’s Review
8 Financial Review
10 Board of Directors and 
Company Advisers
12 Directors’ Report
14 Statement of Corporate Governance
16 Remuneration Report
19 Independent Auditors’ Report
20 Consolidated Profit and Loss Account
20 Consolidated Statement of Total Recognised 
Gains and Losses
21 Consolidated Balance Sheet
22 Balance Sheet
23 Consolidated Cash Flow Statement
24 Notes on the Accounts
42 Five Year Summary
43 Notice of Annual General Meeting 1 The Alumasc Group plc
Annual Highlights
Project partnerships
BMW Orangebox
Carlsberg-Tetley Perkins
Caterpillar Philips
Deutz Saab
Filtronic Scottish Courage
Garrett Siemens
General Motors
Naim
Precision Components (46%)
The UK’s leading specialist supplier of aluminium and zinc fully-
finished diecast components to customers in the automotive,
commercial vehicle, telecoms, lighting, electronics and defence
markets. It provides engineering solutions from a full range of
diecasting, precision machining, assembly and validation
processes.
Industrial Products (54%)
Alumasc Dispense serves the international brewing market with
products for the dispensing and promotion of draught beer. Brock
Metal is a leading supplier of zinc and aluminium alloys to the UK
foundry industry. Bissell manufactures spring steel products and
similar components for world markets.
Exterior Building Products (62%)
A leading UK supplier of high performance rainwater, drainage,
roofing, external wall insulation and render systems.
Interior Building Products (13%)
A UK specialist supplier of casing and enclosure systems
manufactured from a variety of materials including pre-formed
plywood.
Construction Products (25%)
A world leader in the design, manufacture and distribution of Gatic
engineered access covers, linear drainage systems and ancillary
support products.
Engineering Products (Turnover £81.3m) Building Products (Turnover £36.1m)
Following the strong recovery in 2002 the Group has produced a robust
performance in 2003.
● Turnover for continuing activities grew to £117.4m (+6%).
● Operating profit on continuing activities grew to £7.7m (+14%).
● Profit before tax for continuing activities grew to £7.8m (+21%).
● Earnings per share on continuing activities advanced to 15.7p (+23%).
● Dividend per share increased to 8.75p (+3%).
● Net cash at year end of £1.5m (prior year net borrowing of £1.9m).
Turnover 
£m
Financial Highlights
(continuing activities)
01 02 03
103.7
110.5
117.4
Profit 
before tax 
£m
01 02 03
4.2
6.4
7.8
Earnings 
per share
p
01 02 03
8.7
12.8
15.7
Major applications
Airports Social housing
Green roofs Sports facilities
Hospitals
Office developments
Public buildings
Schools
Seaports
Shopping centres Bill Bailie, an executive director of
Alumasc since May 1989 with
responsibility for a number of the Group’s
operations including its brewery related
activities, retired on 31 August 2003 and 
I thank him on your behalf for his
contribution to the company over the 
past 14 years.
Prospects
The consensus forecast for manufacturing
in the UK remains at best flat for the
remainder of 2003. The stronger euro -
some 10 per cent higher against sterling
at the end of the last financial year
compared with the start - could help to
boost demand, but probably not before
2004.
In the construction market, the outlook 
for house-building is uncertain with
underlying demand somewhat tempered
by the surge in house prices. Public
spending, in contrast, is growing strongly.
On balance, we anticipate another year of
tight market conditions in which further
advances will depend largely on our own
actions and continued attention to detail.
J S McCall
Chairman
Summary
2003 was a year of solid achievement 
for Alumasc, against the background of
major events internal and external to 
the company.
Our continuing activities grew turnover 
by 6.2%, following similar advances in 
the previous year. Profit before tax and
earnings per share were ahead on a
similar basis, by 21% and 23%
respectively, and exceeded those for the
Group as a whole in the previous year.
These results were achieved despite
absorbing sharply higher pension and
insurance costs and the closure of the
beer barrel activity which was for so many
years a major contributor to Group profits.
Both our engineering and building product
divisions contributed to this advance.
There was further strengthening of the
Group’s balance sheet, underwriting our
ability to pursue opportunities for
development, with positive cash balances
reported at the year end.
Dividend
This performance has led your directors
to recommend an increase in the final
dividend per share of 0.25p to 6.3p
(2002: 6.05p), an increase of 4%, making
a total of 8.75p for the year (2002: 8.5p)
an increase of 3%. In the Board’s view,
this will result in an excessive weighting 
in favour of the final dividend payment.
Accordingly, it is the Board’s intention to
rebalance the dividend payments less
heavily towards the final payment,
commencing with the next interim
payment. Further details will be announced
at the time of the next interim results.
Strategy
The present business environment of low
inflation and lower economic growth
presents challenges to well-established
businesses such as ours. Our strategy for
continuing the advances of recent years is
to take advantage of our strong market
positions through increased sales activity
and product development. The Group 
has the resources with which to pursue
product innovation and acquisitions in
pursuit of this strategy.
Board
As announced in our interim report, Paul
Hooper, who joined Alumasc in April 2001
as Group Managing Director, was
appointed Chief Executive on 1 March
2003.
Chairman’s Statement
2 The Alumasc Group plc
The Group has the resources 
with which to pursue product
innovation and acquisitions The Group finished the year with net cash
of £1.5 million versus £1.9 million net
borrowings in the prior year.
The strong final quarter of the year has
helped several companies, particularly in
the Building Products Division, to enter
the new financial year with healthy order
books.
During the year, the Group closed
Alumasc Grundy, the beer barrel
manufacturing and repair operation,
following a downturn in business which
resulted from permanent changes in the
UK brewing industry. The costs of £0.9
million for this closure, excluding goodwill,
accounted for under discontinued
activities, are in line with the estimate
given in the December 2002
announcement. The operation’s 10 acre
site in Burton-upon-Trent is being
marketed. Leonardo Internet, the 70%
owned web design company, also formed
part of discontinued activities. Its sale was
in keeping with the Group’s focus on
premium engineering and building
products.
I am very pleased to report a further
improvement in the Group’s operations
during the year. Both Engineering
Products and Building Products improved
upon the performance of continuing
activities against the prior year. This
resulted in an operating profit of £7.7
million, an increase of £0.9 million (14%),
from continuing activities on turnover of
£117.4 million (2002 : £110.5 million).
The 6.2% sales increase for the Group’s
continuing activities contributed to the
improved result. Both divisions’ sales
went ahead. At the same time costs in
several areas were reduced. For example,
year end headcount was on continuing
activities 7% lower than at the prior year
end and, when combined with other cost
reduction measures, helped to offset
some of the £1.0 million increased costs
in insurance, National Insurance and
pensions. The total gross margin
improved by 0.3%.
An improvement in the utilisation of assets
coupled with tight control on capital
investment led to reduced expenditure 
in the year. A focus on working capital
helped to reduce stocks, although the
overall working capital moved ahead of
the prior year due to the strong final
quarter sales which lifted the debtor
figures. The cash performance was
helped by a £1.0 million land sale. 
3 The Alumasc Group plc
Chief Executive’s Review
Both divisions improved upon 
the performance of continuing
activities against the prior year The Engineering Products Division
(continuing activities) increased its profit
by £1.0 million (36%) to £4.0 million on
sales of £81.3 million, £5.6 million (7%)
ahead of the prior year.
Alumasc Precision Components
Despite a £0.5 million sales reduction to
£37.4 million, associated primarily with a
softening in demand from the more
established automotive customer
accounts, operating profit of £1.7 million
grew slightly against the prior year. 
Within the automotive area, BMW has
been a highlight with strong sales of the
Mini Cooper S resulting in increased
component demand.
Several new projects commenced outside
the automotive area including the supply
of cast and machined components to
Caterpillar in North America and Europe.
As with many project start-ups, there
were initial cost overruns. However, costs
fell into line by the year end. Additional
business with Philips and Orangebox, the
manufacturer of office chairs, added to
development outside the automotive area.
Filtronic raised its demand for the high
specification components supplied by the
Precision Component businesses. These
businesses slimmed down their employee
numbers as a result of improved layouts,
efficiency initiatives and changed sales
profiles.
Although affected by some softening 
of demand, Copal went through a
restructuring which substantially improved
its performance versus the prior year. This
helped to offset some of the costs
associated with new project start-ups
across the division. Dyson did well to
increase its sales whilst simultaneously
reducing its overhead costs.
It is pleasing to report that both Alumasc
Precision Components and Dyson
achieved the ISO 14001 environmental
accreditation during the year. Copal is in
the process of applying for this
accreditation.
The Precision Component businesses will
continue to develop into non-automotive
markets and, as an example of this, the
German diesel engine manufacturer,
Deutz, promises to become quite a
significant new customer in the next
financial year.
Industrial Products
The ongoing Industrial Products
companies increased their profit by £1.0
million (87%) to £2.3 million on sales
which increased by £6.1 million (16%) to
£43.9 million.
Alumasc Dispense had an outstanding
year with significant sales being made of
Carlsberg, Kronenbourg and Heineken
branded dispense products, in particular.
The Tap business also grew and
decorated glass had a record year.
Brock Metal maintained a good
performance. Sales tonnages of both
aluminium and zinc grew. However,
margins were tighter than the prior year.
There was some benefit from the sale of a
better mix of high grade aluminum alloys
and the reduction in alloy capacity
following the closure of competitors.
Export sales were also developed.
Bissell continued to restructure its
business and improved its performance,
despite a difficult economic background,
particularly in Continental Europe.
Chief Executive’s Review
Engineering Products
4 The Alumasc Group plc
Alumasc Dispense is industry leader providing
innovative dispense solutions most recently for
Heineken, Scottish Courage, Coors and
Carlsberg.
Right: Electronic components supplied by
Alumasc Precision to Filtronic present the
challenge of design to production in as short
time as possible to maximise market
opportunities.
Turnover 
£m
Engineering Products Division
(continuing activities only)
01 02 03
70.2
75.7
81.3
Operating 
profit 
£m
01 02 03
2.9
3.0
4.0 Precision Components
will continue to develop
into non-automotive
markets
5 The Alumasc Group plc
The close working relationship between
Perkins and Alumasc Precision has now
been extended to its North American
parent - Caterpillar Engines Division. Chief Executive’s Review
Building Products
6 The Alumasc Group plc
The Building Products Division increased
its profit by £0.4 million (10%) to £4.0
million on sales which were £1.3 million
(4%) ahead of the prior year at £36.1
million.
Alumasc Exterior Building Products
Alumasc Exterior Building Products grew
its sales whilst simultaneously achieving
productivity improvements, in part due to
investment in new production equipment.
In particular, the company was successful
in growing its Alumasc and Harmer
Rainwater and Drainage sales along with
its MR social housing walling range. Sales
in the final quarter were particularly good
and a highlight during that period was the
strength of the Roofing Product orders
and sales.
The company will continue to build on its
customer service improvements. It enters
the next financial year with a healthy order
book and there are some signs that the
Government funded improvements in
social housing will accelerate, to the likely
benefit of MR walling sales.
Alumasc Interior Building Products
Alumasc Interior Building Products fell
short of its record results of the prior year.
Nevertheless, its performance was still
satisfactory. Sales were affected
principally by the non-repetition of major
radiator guard projects in the previous
year. Elsewhere, an expanded range of
Pendock-brand column casings, launched
during the year, became established. A
‘state of the art’ website to assist
designers continued to support this
company.
Next year will encompass some quite
ambitious new product launch plans
backed by creative marketing campaigns
which will further develop the established
Pendock range.
Alumasc Construction Products
Elkington Gatic had an outstanding year.
Its strategic plans became a reality in
which, for instance, the Gatic Slotdrain
product successfully widened its market
outside of airports. Assisted by good
productivity and a re-engineered product,
the future looks promising for this range.
Several national supermarkets and a
major oil company are either specifying or
evaluating Gatic Slotdrain for supermarket
car parks and petrol station forecourts.
Export sales of Gatic airport products more
than offset some UK weakness. Significant
contracts were won in the Bahamas,
Bangkok and Singapore. Overall the
business moved ahead strongly, driven by
improved sales and good manufacturing
efficiency improvements.
Elkington China, despite a depressed
Hong Kong economy and the impact of
SARS, grew its sales and reduced costs.
Sales continued for Hong Kong’s Terminal
9 Container Project. In the circumstances,
this company’s result was commendable.
Scaffold and Construction Products 
had a very busy year which included a
relocation of its operation and its
reinvention as a sourcing and marketing
company. During such a potentially
disruptive period, it significantly grew its
sales and reduced its cost base resulting
in an excellent performance. 
Prospects
Across both divisions there continue to be
opportunities to build on the significant
performance improvements that have
taken place in the last two years.
Initiatives will include the targeting of
further productivity improvements in all
businesses. The Group will continue to
invest in sales and marketing resources 
to drive the businesses forward. Whilst
actions taken in the last year have helped
to limit insurance cost increases for the
current year, such increases are still way
ahead of inflation. When combined with
the full year effect of National Insurance
and further pension cost increases, as
with many other companies, the Group
will need to work hard to offset such
costs to continue the forward momentum. 
The Group has increased its profit and
controlled its cash well resulting in a
positive net cash position at the year end.
There is a serious intent to use such
funds to speed up the expansion of the
Building Products Division through bolt-
on acquisitions. To date the Group has
looked at several opportunities. However,
these have been owned by vendors with
unrealistic price aspirations. The search
will continue into the next year to make
acquisitions to benefit from the
operational gearing that should accrue
from the Group’s established brand,
marketing and technical support
strengths, along with its well established
distribution channels.
The future is challenging and exciting. 
The Group remains in a strong position 
to move further forward.
G P Hooper
Chief Executive
9 September, 2003
Alumasc’s Zinco garden roof system and
Hydrotech waterproofing were specified for 
No 1 Poultry, London. 
Right: Pendock column casings create the right
lines for the Nottingham Porsche dealership.
Turnover 
£m
Building Products Division
01 02 03
33.4
34.8
36.1
Operating 
profit 
£m
01 02 03
1.7
3.6
4.0 7 The Alumasc Group plc
Several national
supermarkets and a
major oil company are
specifying or evaluating
Gatic Slotdrain 
The More London project is a prestigious
urban landscaping development. Gatic
Slotdrain provides the system for surface
water drainage that is both efficient 
and discreet. Shareholders’ funds
Shareholders’ funds increased to £36.2
million (2002: £34.5 million) as set out in
note 25 to the accounts.
Cash
The Group remains firmly cash generative;
net cash at the year end was £1.5 million
compared with net borrowings of £1.9
million last year. Cash flow benefited from
the sale of a property for £1.0 million and
a prudent scale back in capital investment
to £2.2 million (2002: £6.3 million), £1.7
million below depreciation. Interest costs
fell to £0.3 million (2002: £0.5 million) on
the positive cash flow and reducing
interest rates.
Pensions
Following an increase in the actuarial
deficit on one of the Group’s final salary
schemes to £4.9 million which was
reported last year, the 2002 actuarial
Results
Profits before tax on continuing activities
rose by £1.4 million to £7.8 million (2002:
£6.4 million) on turnover up by £6.9
million to £117.4 million (2002: £110.5
million). The profit increase includes a
£0.3 million profit on a property sale. The
total result of £4.5 million (2002: £7.5
million) is net of a £3.3 million loss on
discontinued activities which includes 
the write-off through the profit and loss
account under FRS 2 of £2.4 million of
goodwill already written-off to reserves
when the related business was acquired
in the 1980’s. Details of discontinued
activities are set out in note 28 to the
accounts. The satisfactory increase in
profits from continuing activities reflects 
a further 0.3% improvement in gross
margin, and has been achieved despite
significant increases in insurance, pension
and National Insurance charges
amounting to £1.0 million.
Earnings, tax and dividend
Earnings per share on continuing activities
were 15.7p (2002: 12.8p), although
overall earnings per share fell 8.0p to 6.9p
because of the impact of discontinued
activities, including the goodwill write off.
The effective tax rate on continuing
activities was 29.6% (2002: 30.1%). 
This has benefited from a tax refund and
the release of provisions relating to 
earlier years.
In light of the result, the directors propose
an increase in the final dividend to 6.3p
per share (2002: 6.05p), payable on 31
October 2003 to shareholders on the
register as at 10 October 2003. This will
make a total dividend for the year of
8.75p per share (2002: 8.5p) covered 1.8
times by profits from continuing activities.
Financial Review
8 The Alumasc Group plc
Profit before tax on continuing
activities rose by £1.4m to £7.8m
(2002: £6.4m) Summary
With nil gearing, healthy year end order
books and growing profits, the Group 
is in a strong position to make
acquisitions, fund organic growth and
take advantage of other opportunities for
future expansion.
D R Sowerby
Group Finance Director
report on the Group’s other final salary
scheme showed that it also had moved 
to a £4.4 million deficit at 1 April 2002.
These deficits required an increase of
£0.5 million to be made in the SSAP24
pension charge for the year. Movements
in equity and bond prices since the
actuarial valuations have resulted in a
further decrease in the scheme’s assets
and decreases in bond yields have
resulted in further increases in the
actuarial computation of the schemes’
liabilities. The result is an increase in the
overall deficits as at 30 June 2003
compared with the earlier actuarial
valuations. Note 26 to the accounts
shows the schemes’ deficits based on 
the FRS17 conventions. In the analysis of
segmental results in note 2, the cost of
funding the deficits is reported separately
to avoid distorting the results of
commercial operations, since the bulk of
the deficits relate to the 86% of scheme
members who are not current employees.
9 The Alumasc Group plc
Turnover up by £6.9m to £117.4m
(2002: £110.5m)
Directors propose an increase 
in the final dividend to 6.3p per
share (2002: 6.05p) Board of Directors and Company Advisers
10 The Alumasc Group plc
John McCall MA (Cantab) (58)
Chairman 
a
John McCall was appointed Chairman
and Chief Executive on the foundation of
the Company in 1984. He was called to
the Bar in 1968. His previous employment
was with the mining finance house
Consolidated Gold Fields plc with whom
he gained extensive international
experience in the fields of mining and
construction materials.
Philip Gwyn MA (Cantab) (59)
Non-Executive Director 
abc
Philip Gwyn has been a non-executive
Director since 1984. He was called to 
the Bar in 1968 and after a period with
merchant bankers, Dawnay, Day & Co,
started to invest in businesses in which 
he was involved in executive and non
executive capacities. These include
Christie Group plc (currently Chairman).
The Soho Group (Chairman from 1990 to
2001), GrandVision SA., a French retail
group, of which he is a founder director
and other UK enterprises.
David Sowerby BA. FCA (58)
Finance Director
David Sowerby qualified as a Chartered
Accountant in 1969 with Arthur Andersen.
He spent the majority of his earlier career
with the international Bunge organisation
where he was the controller of a £500
million group before moving into the
engineering industry in 1988. He has
been Group Finance Director since 1991.
Jon Pither MA (Cantab) (68)
Deputy Chairman 
abc
Jon Pither holds directorships in a
number of companies and is a past
council member of the CBI and a past
President of The Aluminium Federation.
He was appointed in 1992 and became
Deputy Chairman in 1995. He is the
senior independent non-executive director
and Deputy Chairman of the Alumasc
Board.
Martin Rhodes FCA (50)
Executive Director
Martin Rhodes qualified as a Chartered
Accountant in1977 before moving into
manufacturing with Smiths Industries
where he worked within the automotive
and technical ceramic businesses. He
joined Alumasc in 1989 and was
appointed Managing Director of Alumasc
Precision in 1996 before joining the Board
as an executive director in February 2001. 
He assumed responsibility for Health &
Safety and Environmental issues from
September 2003.
Bill Bailie BSc, C.eng, MIMechE (61)
Executive Director 
Retired 31 August 2003. 
Bill Bailie, joined the Alumasc Group plc
Board in May 1989 from Guinness
Brewing GB. He was executive Chairman
of Alumasc Construction Products,
Alumasc Dispense and Bissell. He had
Group responsibility for purchasing,
human resources and assumed
responsibility for Health & Safety and
Environmental issues from July 2002.
Paul Hooper BSC, MBA, DipM (47)
Chief Executive 
Paul Hooper was appointed Chief
Executive in March 2003 having joined
Alumasc as Group Managing Director in
April 2001. His earlier career included a
first Managing Director role with BTR plc
in 1992. He subsequently joined Williams
Holdings plc in Special Operations,
implementing acquisitions in Europe and
North America, prior to joining Rexam
PLC as a Divisional Managing Director
with responsibility for operations in Europe
and South East Asia.
Richard Saville BSc (54)
Non-Executive Director 
abc
Richard Saville joined The Alumasc Group
plc board as a non-executive director at
the beginning of 2002. He is currently
Director of Finance and Property for
Halfords Limited. His early career was in
the City where he became a partner of
Phillips & Drew in 1980 and a director of
Morgan Grenfell Securities in 1987. He
joined George Wimpey plc in 1988
becoming Group Finance Director at the
beginning of 1994, a position he held until
May 2001. He is also a non-executive
director of Business Post Group plc.
Committees:
a 
Nomination Committee
b 
Audit Committee
c 
Remuneration Committee
Registered Office
The Alumasc Group plc
Burton Latimer
Kettering
Northamptonshire NN15 5JP
Tel: +44(0) 1536 383844
Fax: +44(0) 1536 725069
www.alumasc.co.uk
info@alumasc.co.uk
Registered No: 1767387
Registrars
Northern Registrars Limited
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0LA
Merchant Bank
Close Brothers Corporate
Finance Limited
10 Crown Place
Clifton Street
London EC2A 4FT
Solicitors
Herbert Smith
Exchange House
Primrose Street
London EC2A 2HS
Brokers
Williams de Broë
6 Broadgate
London EC2M 2RP 11 The Alumasc Group plc
John McCall
Chairman
Philip Gwyn
Non-Executive Director
David Sowerby
Finance Director
Jon Pither
Deputy Chairman
Martin Rhodes
Executive Director
Paul Hooper
Chief Executive
Richard Saville
Non-Executive Director 12 The Alumasc Group plc
Directors’ Report
The directors present their report and accounts for the year ended 30 June 2003.
Principal activities and business review
The principal activities of the Group are the manufacture of engineering products and components for industrial customers and the
design, manufacture and marketing of products for the building and construction industries. A review of the operations of the
Group is included in the Chairman’s Statement on page 2, the Chief Executive’s Review on pages 3 to 7 and in the Financial
Review on pages 8 to 9.
Results and dividends
The Group’s profit before tax of £4.5 million (2002: £7.5 million) was after a £3.3 million loss on discontinued activities, including
the goodwill write off of £2.4 million details of which are set out in note 28 to the accounts. The Group’s continuing activities
earned profit before tax of £7.8 million (2002: £6.4 million). The directors recommend a final dividend of 6.3p per ordinary share
payable on 31 October 2003 to members on the register at the close of business on 10 October 2003 which, together with the
interim dividend, makes a total of 8.75p for the year (2002: 8.5p).
Share capital
The present authorised and issued share capital of the Company is set out in note 18.
Purchase of own shares by the Company.
At the previous annual general meeting authority was granted to the directors to purchase, in the market, the Company’s own
shares, up to the limit of 14.9% as permitted under regulation 46 of the Company’s Articles of Association. The authority is
expressed to run until the Company’s next annual general meeting at which it will expire. The directors do not propose to exercise
the authority unless satisfied that a purchase would be in the best interest of shareholders and could be expected to result in an
increase in earnings per share. Renewal of this authority will be proposed at the forthcoming annual general meeting.
Directors
The membership of the Board as at 30 June 2003 is set out on page 10. Bill Bailie retired from the Board on 31 August 2003.
Other directors who served during the year were Keith Walden, who retired on 22 July 2002, and Michael Reid and Debbie
Howard, both of whom resigned on 10 September 2002.
In accordance with the Articles of Association Jon Pither and David Sowerby retire by rotation at the forthcoming annual general
meeting and offer themselves for re-election.
Details of directors’ service agreements are given in the Remuneration Report on pages 16 to 18.
Directors’ share interests
Shares
At 30 June At 30 June
2003 2002
J S McCall 4,071,458 4,071,458
J P Pither 237,631 237,631
W H M Bailie – –
PH R Gwyn 3,057,605 3,057,605
GP Hooper 40,000 28,000
MH Rhodes – –
RCC Saville 3,000 3,000
DR Sowerby 16,560 16,560
Directors’ interests are beneficial with the exception of 434,000 shares (2002: 434,000) in which John McCall has a non beneficial
interest. Details of options granted to the directors can be found in the Remuneration Report on pages 16 to 18.
There has been no change in the directors’ interests in the share capital of the Company from 30 June 2003 to 9 September
2003. 13 The Alumasc Group plc
Substantial shareholders
In addition to those of the directors, the Company has been notified of the following interests in the issued share capital of the
Company at 30 June 2003:
% of
Shares share capital
C R Inwood Esq 1,696,000 4.87
EW O Loughlin Esq 1,669,981 4.80
Platinum Trust (formerly Knox D’Arcy Trust Plc) 2,759,472 7.90
Tweedy Browne Company LLC 3,879,498 11.14
The directors are not aware of any other notifiable interests in the share capital of the Company.
The Company has not been notified of any changes between 30 June 2003 and 1 September 2003.
Environmental matters
The Board aims to operate in such a way that it minimises any adverse effects that its operations may have on the environment
and to find alternative ways of operating where its activities may cause environmental damage. The Group requires that each
operating business achieves minimum standards of environmental efficiency in accordance with written Group policy.
The Board is committed to applying the standards as required by law, codes of practice and issued guidelines. This is done
through product development, promoting use of recycled materials, waste minimisation and energy efficiency.
Health & Safety
The Alumasc Group plc is a health and safety conscious group which seeks to achieve high standards for the wellbeing of its
employees. There is a clear Group policy. Achieving an embedded health and safety culture and reduction of accident risk is the
responsibility of management and employees alike.
All operating companies ensure compliance with legislation and have developed and implemented action plans with the objective 
of achieving continuous improvement in Health & Safety performance which is systematically reviewed by local management and
at Group Board level.
Creditor payment policy
While the Company does not follow a specific code of practice, it has due regard to suppliers’ payment terms and generally
settles all undisputed accounts within 30 days of the due date for payment. At the year end the Company had no trade creditors
(2002: nil). The Group average number of creditor days as at 30 June 2003 was 66 (2002: 64).
Research and development
The Group continues to devote effort and resources to the research and development of new processes and products.
Employees
It is the Group’s policy to give full and fair consideration to the employment of applicants who are disabled persons, to continue
the employment of employees who become disabled persons and, as appropriate, to provide training for other positions.
Donations
The Group made charitable donations of £2,000 during the year (2002: £2,500) and made no political donations.
Auditors
A resolution to re-appoint Ernst & Young LLP as the Company’s auditor will be put to the members at the forthcoming annual
general meeting.
By order of the Board
D R Sowerby
Company Secretary
9 September 2003 14 The Alumasc Group plc
The Board is committed to high standards of corporate governance throughout the Group. This statement describes to the
shareholders how the principles of the Combined Code are applied.
Compliance with the Combined Code of Best Practice
The Company complied with the Combined Code throughout the year ended 30 June 2003 except for those areas which are
reported upon below.
Directors’ service contracts
Certain of the directors have service contracts in excess of the recommended 12 months as disclosed in the Remuneration Report
on pages 16 to 18.
Shareholder communication
The Chairman, Chief Executive and Finance Director maintain regular contact with institutional investors throughout the year to
discuss the strategy and progress of the Group. Private investors are encouraged to attend the AGM and the Notice of Meeting is
sent out 20 working days prior to this meeting. If they are unable to attend, shareholders can vote by proxy. At the AGM the
numbers and voting intentions of the shareholders voting by proxy will be declared to the meeting. The Chairman aims to ensure
that the chairmen of the nomination, remuneration and audit committees are available at the AGM to answer any questions.
The Group web site, www.alumasc.co.uk, makes available copies or summaries of all company announcements, electronic
versions of the Annual Report and Accounts plus full subsidiary information with hot links to the subsidiary companies’ own
websites.
The Board
At 9 September 2003, the date of signing the accounts, the Board comprises 4 executive directors and 3 non-executive directors.
John McCall held the joint role of Chairman and Chief Executive following the flotation of the Company in 1986. On 1 March 2003
he relinquished the role of Chief Executive to Paul Hooper who had been Group Managing Director since April 2001.
The Board meets regularly and retains responsibility for a schedule of matters covering strategic, operational, financial and
compliance issues and receives regular reports on these areas.
The Board of Alumasc is satisfied that a good balance of authority and decision taking power exists among the Group’s executive
directors. The Board considers that the non-executive directors are independent and free from any business or other relationship
that could materially interfere with the exercise of independent judgement. 
Nomination Committee
The members of the Nomination Committee are John McCall (Chairman), Jon Pither (Deputy Chairman) Philip Gwyn and Richard
Saville. The Committee meets when appropriate and is responsible for considering and recommending changes in the Board’s
composition and membership. Appointments are fully discussed against the requirements of the Group’s business plan and the
need to have a balanced Board.
Remuneration Committee
The members of the Remuneration Committee are all non executive directors chaired by Philip Gwyn since September 2002. The
Committee operates within its agreed terms of reference in advising the Board on the remuneration policy for executive directors
and senior executives. The Committee is also responsible for the allocation of options under the executive share option scheme
and awards under the Company’s Long Term Incentive Plan. When making its decisions, the views of the Chief Executive are
considered and professional advice is available if needed. The Board, excluding the non executives, reviews non executive
directors’ fees annually.
The Director’s Report on Remuneration, which has been prepared in accordance with the requirements of the Companies Act
Schedule 7A and approved by the Board, is set out on pages 16 to 18.
Audit Committee
The members of the Audit Committee are all non executive directors chaired by Jon Pither. The Committee meets no less than
twice a year and reports to the Board on all matters relating to regulatory and accounting issues affecting the Group together with
financial reporting and internal control procedures. In addition, the Committee ensures that an objective and professional
relationship is maintained with external auditors who may attend all meetings and have direct access to the Committee and its
Chairman at all times. The executive directors are not members of the Committee but may attend meetings of the Committee as
necessary. The Group does not currently have a dedicated internal audit function; the requirement for this function is kept under
review.
Statement of Corporate Governance 15 The Alumasc Group plc
Going concern
After making proper enquiries, the directors fully expect the Group to have adequate resources to continue in operational
existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.
Internal Control
The directors are responsible for the Group’s system of internal control. The effectiveness of the system has been reviewed during
the financial year. It is acknowledged that any system of internal control can provide reasonable but not absolute assurance
against any material misstatement or loss. An ongoing process, in accordance with the guidance of the Turnbull Committee, has
been established for identifying, evaluating and managing the significant risks faced by the Group.
(i) Risk review
Risk assessment is a continuing process throughout the year, dealt with through monthly board meetings of operating
companies which formally identify the risks most important to each Company, consider their financial implications and assess
the adequacy and effectiveness of control. Each operating company has implemented procedures for controlling the relevant
risks of their businesses. 
The Chairmen of each operating subsidiary, who are executive directors, report to the Board on the risk management
procedures that have been in place during the year and the effectiveness of the level of control in managing the identified risks.
The Board reviews these reports and adds additional items where appropriate. The Board is able to confirm that these
procedures are ongoing. 
(ii) Financial reporting and monitoring
The Board meets regularly throughout the year and has adopted a schedule of matters which are required to be brought to it
for decisions. This procedure is intended to ensure that directors maintain full and effective control over all financial issues. The
Executive Committee, which oversees the Group’s business activities comprises the Group’s executive directors and the
managing directors of principal operating companies.
Group companies operate under a system of controls which include:
•a defined organisational structure with an appropriate delegation of authority to operational management;
•the identification and appraisal of financial risks both formally, within the annual process of preparing business plans and
budgets, and informally through close monitoring of operations;
•a comprehensive financial reporting system within which actual results are compared with approved budgets and previous
years figures on a monthly basis and reviewed at both local and group level;
• an investment evaluation procedure to ensure an appropriate level of approval for all capital expenditure.
Statement of Directors Responsibilities
Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of
affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing those accounts, the
directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the accounts;
•prepare the accounts on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Group and to enable them to ensure that the accounts comply with the Companies Act 1985. They are
also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities. 16 The Alumasc Group plc
Remuneration Report
Information not subject to audit
Remuneration policy 
Salaries are reviewed annually on the basis of market comparisons with positions of similar responsibility and scope in companies 
of a similar size in comparable industries. The Remuneration Committee takes into account company pay awards and personal
performance in reviewing directors’ salaries and information from external salary survey sources, including Monks Partnership,
(part of PriceWaterhouseCoopers).
Annual bonuses are determined by a formula agreed with the Remuneration Committee. A zero threshold is set each year above
which bonuses increase in line with earnings, to a maximum of 40% of salaries, (in relation to Paul Hooper the maximum bonus is
50% of his salary). The bonus targets are set at levels which the Remuneration Committee believes to provide a major challenge
for management in the bonus year.
The Remuneration Committee annually reviews long term incentive awards and awards under the Group’s executive share option
plan which are designed to reward the achievement of long term performance targets.
The Company’s policy is to consider mitigation on termination of service contracts.
Non-executive directors’ remuneration
Fees for non-executive directors are determined by the Board on the basis of market comparisons with positions of similar
responsibility and scope in companies of a similar size in comparable industries. They are not eligible for pension scheme
membership and do not participate in any of the Group’s bonus, share option or incentive schemes.
All executive directors, except Paul Hooper, are members of The Alumasc Group Pension Scheme which is a final salary scheme
and provides directors with individual accrual rates ranging from 1/35th to 1/60th for each year of service, with a maximum
pension of two-thirds of final salary. Pensionable salary excludes bonus payments to the directors.
Service contracts
The Remuneration Committee has determined to respect current best practice in respect of service contracts issued on all new
appointments.
In the case of directors appointed prior to 1994, notice periods are increased by one month for each completed year of service, to
a maximum of 24 months. Accordingly Messrs McCall and Sowerby have rolling service contracts and notice periods of 24
months. Messrs Hooper and Rhodes are employed under 12 month rolling service contracts with 12 months notice.
None of the non-executive directors have service contracts. In accordance with current best practice, since 1999 letters of
appointment have been issued which provide for an initial period of three years, subject to review. Richard Saville’s current terms
of appointment expire on 1 January 2005. There are no such letters of appointment in respect of Messrs Gwyn and Pither who
were appointed prior to this date.
The Committee considers the above arrangements are reasonable and necessary to the employment of high calibre executive
directors. Details of compliance with the Combined Code can be found in the corporate governance statement on pages 14 to 15.
The graph shows the total shareholder return on a hypothetical holding of shares in the Company compared with a broad equity
market. The directors have chosen to illustrate TSR against the FTSE All Share Index. This Index has been selected as, in the
opinion of the directors, providing a more sound comparison than any subset of the market.
ALUMASC - TOTAL RETURN INDEX
FTSE ALL SHARE - TOTAL RETURN INDEX
Compliance graph - historical TSR performance
SOURCE: DATASTREAM 17 The Alumasc Group plc
Information subject to audit
Directors’ remuneration
Basic salary Other Total Total
and fees benefits Bonuses 2003 2002
£000 £000 £000 £000 £000
Executive directors
J S McCall 146 6 26 178 171
GP Hooper 161 21 29 211 **249
WHM Bailie 108 14 19 141 128
MH Rhodes 95 16 8 119 108
DR Sowerby 121 9 21 151 136
WKWalden* 8 1 – 9 131
Non-executive directors
JP Pither 22 – – 22 21
PHR Gwyn 17 – – 17 15
Miss D Howard* 4 – – 4 15
R C C Saville 17 – – 17 7
M A W Reid* 4 – – 4 15
*Up to date of retirement
**Includes a relocation allowance
Benefits include health insurance and the provision of a company car or company car allowance
Gross Increase Total Value of Value of Value of Total
increase in in accrued accrued net increase accrued accrued change in
accrued pension net pension at in accrual pension at pension at value during
pension of inflation 30.06.2003 over period 30.06.2003 30.06.2002 period
£000 £000 £000 £000 £000 £000 £000
J S McCall 4 3 70 55 1,383 1,133 250
WH M Bailie 8 7 61 161 1,454 1,115 339
MH Rhodes 2 1 21 7 160 146 9
DR Sowerby 3 3 28 51 558 434 124
WKWalden – – 70 – 1,591 1,575 16
a. The accrued pension entitlement shown is that which would be paid annually on retirement based on service to the end of the
financial year.
b. The transfer values have been calculated on the basis of actuarial advice in accordance with Guidance Note GN11 and are
stated after deducting director contributions. The value represents a liability of the employing company - not a sum to be paid
or due to the individual director.
c. W H M Bailie retired on 31 August 2003. The Company has agreed to augment his pension by a payment of £91,000 into the
Scheme.
The Company paid contributions into an executive pension scheme, which has a money purchase arrangement for G P Hooper.
Contributions paid during the year were £30,443 (2002: £29,000). 18 The Alumasc Group plc
Remuneration Report
Share options
Date
At 1 July 2002 Exercise from which Expiry
and 30 June 2003 price exercisable date
J S McCall 40,000 135.0p Oct 2002 Oct 2009
GP Hooper 100,000 106.5p Apr 2004 Apr 2011
WHM Bailie 40,000 135.0p Oct 2002 Oct 2009
MH Rhodes 15,000 135.0p Oct 2002 Oct 2009
DR Sowerby 10,629 318.0p Mar 1998 Mar 2005
40,000 135.0p Oct 2002 Oct 2009
Executive share options awarded since 1994 may only be exercised if the growth in Earnings Per Share (EPS) exceeds Retail Price
Index (RPI) by 6% over the course of a continuous three year period. This relates only to the 10,629 options awarded to David
Sowerby in March 1995. For more recent awards made in 1999/2000, 2000/2001 and 2001/2002 EPS growth will have to
exceed RPI plus 7.5%.
No share options held by directors were granted, exercised or lapsed in the year.
The closing mid market price of the shares on 30 June 2003 was 137p and ranged between 110p and 145p per share during the
year.
Long Term Incentive Plan
The Alumasc Group plc Long Term Incentive Plan (the “Plan”) was approved by the shareholders in October 1997. The purpose of
the Plan is to motivate key individuals to take the Company upon a programme of long term growth and to reward them for
exceptional performance. Under the Plan each participant is allocated a number of shares. The vesting of shares under the Plan is
subject to the achievement of the Performance Criteria. To date no shares have been vested in the participants.
Awards under the Plan vest pro rata between nil and 100 per cent conditional upon achieving targeted growth in EPS over a fixed
three year period following the making of the award.
In respect of awards made prior to October 2002 there is nil vesting until the Group reaches the lower target of 2.5 per cent
growth per annum in EPS above the rate of increase in the RPI. 100 per cent of awards will vest on achieving 15 per cent growth
per annum in EPS above the rate of increase in RPI.
In respect of awards made after October 2002 there will be 10 per cent vesting when the Group reaches the lower target of 2.5
per cent growth per annum in EPS above the rate of increase in the RPI. 100 per cent of awards will vest on achieving 10 per
cent growth per annum in EPS above the rate of increase in RPI.
The maximum contingent interest in shares under the Plan is:
Awards made before Awards made after
October 2002 October 2002
At 30 June 2002 
and
At 30 June 2003 At 30 June 2003
GP Hooper 73,171 53,571
MH Rhodes 29,296 21,429
DR Sowerby 39,024 28,571
Release date for outstanding awards, from 1 July 2004 1 July 2005
There was only one grant, during the year ended 30 June 2003, which totalled 146,429 shares, and was made after October
2002, when the share price was £1.40.
On behalf of the Board
P H R Gwyn
Chairman 
Remuneration Committee 19 The Alumasc Group plc
We have audited the Group’s financial statements for the year ended 30 June 2003 which comprise the consolidated profit and loss
account, consolidated statement of total recognised gains and losses, consolidated balance sheet, balance sheet, consolidated
cash flow statement, and the related notes 1 to 28. These financial statements have been prepared on the basis of the accounting
policies set out therein. We have also audited the information in the Remuneration Report that is described as having been audited.
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them
in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report, including the financial statements which are required to be prepared
in accordance with applicable United Kingdom law and accounting standards as set out in the Statement of Directors’
Responsibilities in relation to the financial statements.
Our responsibility is to audit the financial statements and the part of the Remuneration Report to be audited in accordance with
relevant legal and regulatory requirements, United Kingdom Auditing Standards and the Listing Rules of the Financial Services
Authority.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements
and the part of the Remuneration Report to be audited have been properly prepared in accordance with the Companies Act 1985.
We also report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the Company has not
kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law or the Listing Rules regarding directors’ remuneration and transactions with the Group is not disclosed.
We review whether the Statement of Corporate Governance reflects the company’s compliance with the seven provisions of the
Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not required to consider whether
the board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the Group’s
corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial
statements. This other information comprises the Directors’ Report, unaudited part of the Remuneration Report, Chairman’s
Statement, Chief Executive’s Review, Financial Review and Statement of Corporate Governance. We consider the implications for
our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.
Basis of audit opinion 
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of
the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgements made by the
directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Remuneration
Report to be audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our
opinion we also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the
Remuneration Report to be audited.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 30 June
2003 and of the profit of the Group for the year then ended and the financial statements and the part of the Remuneration Report to
be audited have been properly prepared in accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
Luton
9 September 2003
Independent Auditors’ Report
To the members of The Alumasc Group plc 2003 2002
Continuing Discontinued Continuing Discontinued
activities activities Total activities activities Total
Notes £000 £000 £000 £000 £000 £000
Turnover 2 117,425 2,499 119,924 110,530 7,117 117,647
Cost of sales 88,555 2,086 90,641 83,709 5,101 88,810
Gross profit 28,870 413 29,283 26,821 2,016 28,837
Selling and distribution costs 9,199 72 9,271 8,599 177 8,776
Administrative expenses 11,933 392 12,325 11,418 766 12,184
Operating profit/(loss) 3 7,738 (51) 7,687 6,804 1,073 7,877
Share of operating profit in associates 55 – 55 60 – 60
Profit on fixed asset disposals 305 – 305 –––
Sale/termination of businesses: 28
Business closure costs/loss on sale – (875) (875) –––
Goodwill write off – (2,388) (2,388) –––
– (3,263) (3,263) –––
Interest receivable 39 – 39 48 – 48
Interest payable 5 (361) – (361) (508) – (508)
Profit/(loss) on ordinary activities before taxation 2 7,776 (3,314) 4,462 6,404 1,073 7,477
Taxation charge/(credit) 6 2,302 (246) 2,056 1,931 323 2,254
Profit/(loss) on ordinary activities after taxation 5,474 (3,068) 2,406 4,473 750 5,223
Equity minority interest (22) – (22) (24) – (24)
Profit/(loss) for the financial year attributable to 
shareholders 5,452 (3,068) 2,384 4,449 750 5,199
Dividends 7 3,035 – 3,035 2,948 – 2,948
Retained profit/(loss) for the financial year 19 2,417 (3,068) (651) 1,501 750 2,251
Basic earnings per share 8 15.7p (8.8)p 6.9p 12.8p 2.1p 14.9p
Diluted earnings per share 8 15.6p (8.8)p 6.8p 12.8p 2.1p 14.9p
Consolidated Statement of Total Recognised Gains and Losses
For the year ended 30 June 2003
2003 2002
Notes £000 £000
Profit for the financial year attributable to shareholders 2,384 5,199
Currency translation differences on foreign currency net investments 19 (9) (2)
Total recognised gains and losses for the year 2,375 5,197
20 The Alumasc Group plc
Consolidated Profit and Loss Account
For the year ended 30 June 2003 21 The Alumasc Group plc
Consolidated Balance Sheet
At 30 June 2003
2003 2002
Notes £000 £000
Fixed assets
Intangible assets 9 58 66
Tangible assets 10 28,411 31,425
Investments 11 493 468
28,962 31,959
Current assets
Stocks 12 11,698 11,997
Debtors 13 24,356 21,939
Cash at bank and in hand 4,608 2,231
40,662 36,167
Creditors: amounts falling due within one year
Trade and other creditors 14 25,608 24,572
Taxation 1,202 1,410
Proposed dividend 2,185 2,098
28,995 28,080
Net current assets 11,667 8,087
Total assets less current liabilities 40,629 40,046
Creditors: amounts falling due after more than one year 15 3,656 4,831
Provisions for liabilities and charges 16 704 598
Equity minority interest 36 112
Net assets 36,233 34,505
Capital and reserves
Called up share capital 18 4,352 4,352
Share premium 19 26,907 26,907
Revaluation reserve 19 1,874 2,021
Capital redemption reserve 19 693 693
Profit and loss account 19 2,407 532
Equity shareholders’ funds 36,233 34,505
J S McCall D R Sowerby
Director Director
9 September 2003 22 The Alumasc Group plc
2003 2002
Notes £000 £000
Fixed assets
Tangible assets 10 3,562 3,667
Investments 11 52,005 52,005
55,567 55,672
Current assets
Debtors 13 309 653
Amounts due from Group companies 4,251 7,574
Cash at bank and in hand 2,886 –
7,446 8,227
Creditors: amounts falling due within one year
Trade and other creditors 14 2,194 2,744
Proposed dividend 2,185 2,098
4,379 4,842
Net current assets 3,067 3,385
Total assets less current liabilities 58,634 59,057
Creditors: amounts falling due after more than one year 15 2,381 3,079
Net assets 56,253 55,978
Capital and reserves
Called up share capital 18 4,352 4,352
Share premium 19 26,907 26,907
Revaluation reserve 19 2,265 2,265
Merger reserve 19 10,606 10,606
Capital redemption reserve 19 693 693
Profit and loss account 19 11,430 11,155
Equity shareholders’ funds 56,253 55,978
J S McCall D R Sowerby
Director Director
9 September 2003
Balance Sheet
At 30 June 2003 23 The Alumasc Group plc
Consolidated Cash Flow Statement
For the year ended 30 June 2003
2003 2002
Notes £000 £000
Net cash inflow from operating activities 21 9,464 12,271
Returns on investments and servicing of finance
Interest received 39 48
Interest paid (147) (432)
Interest element of lease/hire purchase payments (214) (76)
Dividends paid to minority interests (16) –
Net cash outflow from returns on investments and servicing of finance (338) (460)
Taxation
UK corporation tax paid (2,095) (938)
Capital expenditure and financial investment
Purchase of tangible fixed assets (2,217) (4,487)
Proceeds from sale of tangible fixed assets 24 1,520 226
(697) (4,261)
Acquisitions and disposals
Deferred consideration from sale of business activities – 379
Sale of subsidiary undertaking 109 –
Net cash disposed of with subsidiary undertaking (108) –
1 379
Equity dividends paid (2,948) (2,948)
Cash inflow before use of liquid resources and financing 3,387 4,043
Financing
Repayment of amounts borrowed (688) (116)
Increase in medium term secured borrowings and lease/hire purchase financing – 2,054
(688) 1,938
Increase in cash in the year 22 2,699 5,981 24 The Alumasc Group plc
1 Accounting policies
(a) Accounting convention
The accounts are prepared:
(i) under the historical cost convention modified in the consolidated balance sheet by the revaluation of freehold and long
leasehold property and in the Company balance sheet by the revaluation of the investment in certain subsidiaries; and
(ii) in accordance with applicable accounting standards.
(b) Basis of consolidation
The consolidated accounts incorporate the accounts of the Company and each of its subsidiaries for the year ended 30 June
2003. The results of companies acquired or disposed of during the year are included in the Group profit and loss account from
or up to the effective date of acquisition or disposal.
(c) Goodwill
The excess or deficiency of the purchase consideration for companies compared to the value ascribed to their net assets at
the date of acquisition prior to 1 July 1998 was set off directly to reserves and not reinstated on implementation of FRS 10.
For acquisitions made on or after 1 July 1998, positive goodwill is capitalised, classified as an asset on the balance sheet and
amortised on a straight line basis over its useful economic life of 10 or 20 years.
If a subsidiary, associate or business activity is subsequently sold or closed, any goodwill arising on acquisition that was written
off directly to reserves is taken into account in determining the profit or loss on sale or closure.
Where appropriate, advantage is taken of statutory share premium relief under Section 131 of the Companies Act 1985.
(d) Depreciation of tangible fixed assets
Freehold land is not depreciated. The cost or valuation of other tangible fixed assets is written off by equal monthly instalments
over their expected useful lives as follows:
Freehold and leasehold buildings – 25 to 50 years
Long leasehold land – over the period of the lease
Short leasehold property – over the period of the lease
Plant and equipment – 5 to 10 years
Motor vehicles – 4 to 5 years
(e) Fixed asset accounting - FRS 15
The Group elected to adopt the transitional provisions of FRS 15 under which previous valuations of freehold and long
leasehold land and buildings are retained and treated as “cost” for future accounting purposes. The majority of the Group’s
properties have been acquired as a result of the acquisition of related businesses; in these cases, the fair value of the freehold
and long leasehold land and buildings at acquisition is already treated as “cost” for all purposes.
(f) Leased assets
Assets held under leasing arrangements that transfer substantially all the risks and rewards of ownership to the Group are
capitalised. The capital element of the related rental obligation is included in creditors. The interest element of the rental
obligation is charged to the profit and loss account in proportion to the reducing capital element outstanding. Rentals in
respect of all other leases are charged to the profit and loss account as incurred.
(g) Stocks and work in progress
Stocks are valued at the lower of cost and net realisable value after making due allowance for any obsolete or slow moving
items. In the case of finished goods and work in progress, cost comprises direct materials, direct labour and an appropriate
proportion of manufacturing fixed and variable overheads, based on a normal level of activity.
(h) Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Notes on the Accounts
For the year ended 30 June 2003 25 The Alumasc Group plc
1 Accounting policies (continued)
(i) Pension costs
The Group operates both defined benefit and defined contribution pension schemes as follows:
(i) Defined benefit pensions
The Group operates two principal defined benefit pension schemes which require contributions to be made to separately
administered funds. Contributions to the funds are charged to the profit and loss account so as to spread the cost of
pensions over the employees’ working lives within the Group. The regular cost is attributed to individual years using the
“projected unit” method. Variations in pension cost, which are identified as a result of actuarial valuations, are amortised
over the average expected remaining working lives of employees in proportion to their expected payroll costs. Differences
between the amounts funded and the amounts charged to the profit and loss account are treated as either provisions or
prepayments in the balance sheet.
(ii) Defined contribution pensions
The pension cost charge of the Group’s defined contribution schemes represents the contributions payable by the Group to
the funds. The assets of the schemes are held separately from those of the Group in independently administered funds.
The Group has continued to account for pensions in accordance with SSAP 24. Phased transitional disclosures in accordance
with FRS 17, full implementation of which has been deferred, are given in note 26 to the accounts.
(j) Deferred taxation
Provision is made for deferred taxation in accordance with FRS 19. 
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date
where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to
receive more, tax, with the following exceptions:
–provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains
on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet
date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis
of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into
replacement assets and charged to tax only where the replacement assets are sold.
– deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will
be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing
differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
(k) Foreign currencies
Assets, liabilities, revenues and costs denominated in foreign currencies are recorded at the rates of exchange ruling at the
dates of the transactions; monetary assets and liabilities at the balance sheet dates are translated at year end rates of
exchange.
The accounts of the overseas subsidiary and associate are translated at the rate of exchange ruling at the balance sheet date.
The exchange difference arising on the retranslation of opening net assets is taken directly to reserves. All other translation
differences are taken to the profit and loss account with the exception of differences on foreign currency borrowings to the
extent that they are used to finance or provide a hedge against Group equity investments in foreign enterprises, which are
taken directly to reserves together with the exchange difference on the net investment in these enterprises. 26 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
2 Analysis of assets employed, turnover and profits between activities and markets
Turnover comprises the invoice value of goods and services supplied by the Group exclusive of VAT and intragroup
transactions.
Assets employed, turnover and profit/(loss) on ordinary activities before taxation attributable to each of the classes of activity of
the Group are as follows:
Segmental analysis 2003 2002
Continuing Continuing
Assets Total activities Assets Total activities
employed Turnover profit profit employed Turnover profit profit
£000 £000 £000 £000 £000 £000 £000 £000
Engineering products 30,162 83,725 3,945 4,008 32,524 82,663 4,086 2,937
Building products 10,564 36,132 3,986 3,986 9,995 34,862 3,608 3,608
Leonardo –6712 – 57 122 (76) –
Sub total 40,726 119,924 7,943 7,994 42,576 117,647 7,618 6,545
Net cash/(debt) 1,536 (1,851)
Non-operating and miscellaneous (6,029) (6,220)
Pension deficit (cost)/surplus credit (256) (256) 259 259
36,233 119,924 7,687 7,738 34,505 117,647 7,877 6,804
Share of operating profit in associates 55 55 60 60
Profit on fixed asset disposals 305 305 ––
Business closure costs/loss on sale (875) – ––
Goodwill write off (2,388) – ––
Net interest (322) (322) (460) (460)
4,462 7,776 7,477 6,404
Included in the columns above are discontinued activities within Engineering products comprising: turnover £2,432,000 (2002:
£6,995,000), loss £63,000 (2002: profit £1,149,000) and assets employed £499,000 (2002: £1,142,000). All figures for
Leonardo relate to discontinued activities.
The balance in each category relates to continuing activities. 
Net cash/debt comprises cash less overdrafts, medium term secured asset backed borrowings and lease/hire purchase
financing.
Non-operating and miscellaneous items include tax balances, pension creditors and dividends.
The amounts disclosed as pension deficit (cost)/surplus credit have been shown separately because they relate to closed
schemes, 86% of whose members are not now employed by the Group.
Geographical analysis
All business operations are located in the United Kingdom and all turnover is generated there with the exception of Elkington
China Limited, based in Hong Kong, whose turnover is not significant.
Turnover by destination is as follows:
2003 2003 2002 2002
Continuing Continuing
activities Total activities Total
£000 £000 £000 £000
United Kingdom 100,377 102,876 97,308 104,416
Europe – EU 12,514 12,514 10,346 10,346
Europe – Non EU 680 680 746 746
Other 3,854 3,854 2,130 2,139
117,425 119,924 110,530 117,647 27 The Alumasc Group plc
3 Operating result
This is stated after charging:
2003 2002
£000 £000
Research and development 814 1,064
Depreciation – owned tangible fixed assets 3,660 3,622
Depreciation – tangible fixed assets held under finance leases/hire purchase arrangements 304 189
Amortisation and impairment of goodwill 8 8
Operating lease rentals – hire of plant and equipment 102 117
Operating lease rentals – other operating leases 939 963
Auditors’ remuneration – audit 102 103
Auditors’ remuneration – other services 100 84
4 Emoluments of directors and employees
Employee costs, including directors, during the year were:
2003 2002
£000 £000
Wages and salaries 23,080 25,172
Social security costs 2,090 2,169
Other pension costs 1,555 1,079
26,725 28,420
The average monthly number employed by the Group during the year, including directors, was as follows:
2003 2002
Number Number
Works personnel 735 865
Executive and administrative staff 355 367
1,090 1,232
Details of directors’ remuneration are set out in the Remuneration Report.
5 Interest payable
2003 2002
£000 £000
Loans and overdrafts wholly repayable within five years 147 426
Lease and hire purchase interest 214 76
Other – 6
361 508 28 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
6Taxation
a. Tax on profit on ordinary activities
The tax charge is made up as follows:
2003 2002
£000 £000
Current tax:
– UK corporation tax 2,028 1,973
– Repayment of tax re prior year (89) –
– Tax overprovided in previous years (61) (136)
1,878 1,837
– Foreign tax 15 16
1,893 1,853
Share of associate’s current tax – overseas 30 24
Total current tax (note 6b) 1,923 1,877
Deferred tax:
Origination and reversal of timing difference 133 377
Total deferred tax 133 377
Tax on profit on ordinary activities 2,056 2,254
b. Factors affecting current tax charge 
The tax assessed on the total profit on ordinary activities for the year is higher (2002: higher) than the standard rate of
corporation tax in the UK of 30% (2002: 30%). The differences are reconciled below:
2003 2002
£000 £000
Profit on ordinary activities before tax 4,462 7,477
Profit on ordinary activities multiplied by standard rate of corporation tax in UK of 30% (2002: 30%) 1,339 2,243
Expenses not deductible for tax purposes/income not taxable 172 137
Goodwill written off 716 –
Profit on fixed asset disposal (92) –
Depreciation in excess of capital allowances (48) (305)
Short term timing difference (28) (72)
Other differences 14 10
Repayment of tax re prior year (89) –
Tax overprovided in previous years – corporation tax (61) (136)
Total current tax 1,923 1,877 29 The Alumasc Group plc
6Taxation (continued)
c. Factors that may affect future tax charges
Group
Based on current capital investment plans, the Group expects to continue to be able to claim capital allowances in excess 
of depreciation in future years. 
The Group has agreed capital losses in the UK in excess of £20 million that relate to prior years, and under current legislation
these losses are available for offset against future chargeable gains. A deferred tax asset has not been recognised in respect of
these losses, as there are no disposals on which a binding agreement exists for sale at the balance sheet date. 
No provision has been made for deferred tax on gains recognised on revaluing property to its market value. Such tax would
become payable only if the property were sold without it being possible to claim rollover relief or the offset of capital losses
referred to above. The total amount unprovided for is £120,000 (2002: £120,000).
Parent Company
No provision has been made for deferred tax on gains recognised on revaluing shares held in a subsidiary to its market value.
Such tax would become payable only if the shares in the subsidiary were sold and such disposal did not qualify for the
substantial shareholdings exemption enacted in Finance Act 2002 or where any gain could not be set off against the capital
losses within the Group. The total amount unprovided for, should the exemption not apply, is £86,000 (2002: £86,000).
d. Deferred tax 
Group
The deferred tax included in the balance sheet is as follows:
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Included in debtors (note 13) – – (22) (9)
Included in provisions for liabilities and charges (note 16) 382 249 – –
382 249 (22) (9)
Accelerated capital allowances 1,137 1,148 32 28
Other timing differences (755) (899) (54) (37)
Provision for deferred tax 382 249 (22) (9)
Group Company
£000 £000
At 1 July 2002 249 (9)
Deferred tax charge/(credit) current year 75 (12)
Deferred tax charge/(credit) prior year 58 (1)
At 30 June 2003 382 (22)
7Dividends
2003 2002
£000 £000
Interim dividend of 2.45p per share (2002: 2.45p), paid 7 April 2003 850 850
Proposed final dividend of 6.3p per share (2002: 6.05p), payable 31 October 2003 2,185 2,098
3,035 2,948 30 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
8 Earnings per share
Both the earnings per share and the diluted earnings per share are based on the profit after tax attributable to shareholders for
the financial year of £2,384,000 (2002: £5,199,000). Earnings per share is based on the weighted average number of ordinary
shares in issue during the year ended 30 June 2003 of 34,816,788 (2002: 34,816,788). Diluted earnings per share is based on
the weighted average number of ordinary shares in issue during the year, after allowing for the exercise of outstanding share
options, of 34,864,434 (2002: 34,852,456).
9 Intangible fixed assets
Goodwill
£000
Cost:
At 1 July 2002 402
On subsidiaries disposed of (323)
At 30 June 2003 79
Amortisation:
At 1 July 2002 336
Charge for year 8
On subsidiaries disposed of (323)
At 30 June 2003 21
Net book value:
At 30 June 2003 58
At 1 July 2002 66
10 Tangible fixed assets
Group
Plant, equipment
Freehold Long Short and motor vehicles
land and leasehold leasehold
buildings property property Owned Leased Total
£000 £000 £000 £000 £000 £000
Cost or valuation:
At 1 July 2002 17,129 1,457 227 45,018 4,534 68,365
Additions 26 3 – 2,188 – 2,217
Disposals (1,241) – (15) (5,091) (312) (6,659)
On subsidiaries disposed of ––– (113) – (113)
At 30 June 2003 15,914 1,460 212 42,002 4,222 63,810
Depreciation:
At 1 July 2002 3,442 180 205 31,199 1,914 36,940
Charge for year 349 29 16 3,266 304 3,964
On disposals (398) – (14) (4,855) (156) (5,423)
On subsidiaries disposed of ––– (82) – (82)
At 30 June 2003 3,393 209 207 29,528 2,062 35,399
Net book value:
At 30 June 2003 12,521 1,251 5 12,474 2,160 28,411
At 1 July 2002 13,687 1,277 22 13,819 2,620 31,425 31 The Alumasc Group plc
10 Tangible fixed assets (continued)
All of the Group’s tangible fixed assets are held at cost, except that £7,173,000 of the cost of freehold land and buildings is
held at valuations carried out in June 1989. Had these revaluations not taken place the assets would have been carried in the
balance sheet at a cost of £2,396,000 and a net book value of £671,000.
Included within freehold land and buildings is land of £6,856,000 (2002: £7,196,000) which is not depreciated.
Included within freehold land and buildings is an amount of cost £1,281,000, accumulated depreciation £582,000, relating to
assets held for resale, being the Alumasc Grundy site property. 
Parent Company
Plant,
Freehold Long equipment and
land and leasehold motor vehicles
buildings property Owned Total
£000 £000 £000 £000
Cost:
At 1 July 2002 3,832 235 460 4,527
Additions –– 37 37
Transfers in –– 24 24
Disposals –– (48) (48)
At 30 June 2003 3,832 235 473 4,540
Depreciation:
At 1 July 2002 529 80 251 860
Charge for year 64 7 67 138
On transfers in –– 17 17
On disposals –– (37) (37)
At 30 June 2003 593 87 298 978
Net book value:
At 30 June 2003 3,239 148 175 3,562
At 1 July 2002 3,303 155 209 3,667
11 Investments
Group
Associated
undertakings Unlisted Total
£000 £000 £000
Share of net assets or cost:
At 1 July 2002 231 237 468
Share of profit retained in associated undertaking 25 – 25
At 30 June 2003 256 237 493
The associated undertaking comprises a 25% investment in Xiloform Profili srl, a plywood building products manufacturer,
incorporated in Italy, which is held through a subsidiary undertaking.
Unlisted investments: the Group holds 7.53% of the share capital of Performance Roofing Systems SA, a specialist flat roofing
materials manufacturer which is incorporated and operates in Belgium, and 20% of the share capital of Amorim Isolamentos
SA, a specialist cork insulation product manufacturer and distributor, which is incorporated and operates in Portugal. In the
directors’ opinion, the degree of influence exercised over Amorim Isolamentos SA is insufficient to justify its treatment as an
associated undertaking.  32 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
11 Investments (continued)
Parent Company
Subsidiary
undertakings
£000
Cost or valuation:
At 1 July 2002 71,026
Disposals (809)
At 30 June 2003 70,217
Provisions:
At 1 July 2002 19,021
On disposals (809)
At 30 June 2003 18,212
Written down value:
At 30 June 2003 and at 1 July 2002 52,005
The principal subsidiary undertakings and related classes of business are as follows: Alumasc Precision Limited, (engineering
products), Alumasc Exterior Building Products Limited, (building products) and Alumasc Limited, (engineering and building
products). All subsidiary companies are owned 100%, and are registered and operate in England, with the exception of
Elkington China Limited, which is 70% owned, incorporated in Hong Kong and operates in The People’s Republic of China.
The parent company’s investment in Alumasc Limited was revalued in 1985 to reflect the subsidiary’s net assets at that date
and its investment in Alumasc Grundy Limited and Benjamin Priest Group Limited was restated in 1996 and 1999 respectively
to reflect a permanent diminution in their value. 
12 Stocks
Group
2003 2002
£000 £000
Raw materials 4,741 4,882
Work in progress 2,184 2,244
Finished goods 4,773 4,871
11,698 11,997
13 Debtors
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Trade debtors 21,351 20,301 – –
Other debtors 840 675 228 573
Prepayments and accrued income 2,165 963 59 71
Deferred tax asset – – 22 9
24,356 21,939 309 653 33 The Alumasc Group plc
14 Trade and other creditors
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Bank overdraft – 322 – 1,453
Trade creditors 17,716 16,794 – –
Other taxation and social security 1,677 1,866 16 35
Other creditors 3,410 2,582 1,058 156
Accruals 2,069 2,320 384 412
Fixed asset backed secured loans 222 208 222 208
Obligations under lease/hire purchase agreements 514 480 514 480
25,608 24,572 2,194 2,744
Included in trade creditors is £222,000 (2002: £209,000) owed to the associated undertaking, Xiloform Profili srl. 
Purchases from Xiloform Profili srl in the year amounted to £998,000 (2002: £1,062,000).
15 Creditors: amounts falling due after more than one year
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Other creditors 966 1,278 45 7
Fixed asset backed secured loans 686 908 686 908
Obligations under lease/hire purchase agreements 1,650 2,164 1,650 2,164
Other long term liabilities 354 481 – –
3,656 4,831 2,381 3,079
Obligations under fixed asset backed secured loans have a fixed interest rate of 5.97%. Amounts falling due in over one year
are as follows: repayable within one to two years £237,000 (2002: £222,000) and within two to five years £449,000 (2002:
£686,000).
Obligations under lease/hire purchase agreements have fixed interest rates varying from 5.7% to 6.1%. Amounts falling due in
over one year are as follows: repayable within one to two years £547,000 (2002: £514,000) and within two to five years
£1,103,000 (2002: £1,650,000).
16 Provisions for liabilities and charges
Group
Deferred
taxation Warranty Total
£000 £000 £000
At 1 July 2002 249 349 598
Utilised – (192) (192)
Profit and loss account 133 165 298
At 30 June 2003 382 322 704
It is anticipated that the warranty provision will be utilised within five years.
An analysis of the deferred tax provision is provided in note 6d. 34 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
17 Derivatives and other financial instruments
Policy
The Group does not use complex derivative financial instruments. It is the Group’s policy that no trading in financial instruments
is undertaken. It is exposed, to an extent, to risks such as interest rate risk and liquidity risk. Policies for managing each of
these risks are summarised below. These policies have remained unchanged since the beginning of the financial year.
Foreign currency risk
The Group has transactional currency exposures. Such exposures arise from sales or purchases by operating companies in
currencies other than the companies’ operating (or “functional”) currency. Operating companies use forward currency contracts
to hedge at the time of committing to significant transactions denominated in foreign currencies.
Finance and interest rate risk
Although the Group has limited borrowings, and therefore its exposure to interest rate fluctuations is limited, it decided during
the prior year to convert part of its floating rate overdraft facilities to fixed rate asset backed borrowings repayable over five
years, in order to lock into historically low interest rates.
Other borrowings remain short term with floating interest rates.
Liquidity risk
For short term working capital purposes the Group utilises bank overdrafts. Because of the nature of their use, such facilities
are typically “on demand”. Reliance on overdraft facilities has been reduced as a result of the medium term secured borrowing
arrangements set up in the previous year. Borrowing facilities are reviewed annually. 
The disclosures below comprise sterling denominated financial instruments and exclude short term debtors and creditors.
Interest rate risk profile of financial liabilities
2003 2002
£000 £000
Fixed rate financial liabilities 3,072 3,760
Floating rate financial liabilities – 322
Financial liabilities on which no interest is paid – 127
3,072 4,209
Fixed rate financial liabilities:
Weighted average interest rate – % 5.9 5.9
Weighted average period for which interest rate is fixed – years 2.5 3.0
Financial liabilities on which no interest is paid:
Weighted average period until maturity – years – 1.0
The fixed rate financial liabilities comprise asset backed borrowings bearing interest rates between 5.7% and 6.1%, which are
repayable over the five years ended 30 June 2007. 
The floating rate financial liabilities in the prior year comprise bank overdrafts that bear interest at 1% above bank base rate. 
Maturity of financial liabilities
2003 2002
£000 £000
In one year or less or on demand 736 1,070
In more than one year but not more than two 784 803
In more than two years but not more than five 1,552 2,336
3,072 4,209 35 The Alumasc Group plc
17 Derivatives and other financial instruments (continued)
Interest rate risk profile of financial assets
2003 2002
£000 £000
Floating rate financial assets 4,608 2,231
Financial assets on which no interest is earned 237 237
4,845 2,468
The floating rate financial asset represents cash at bank. To the extent that significant cash balances exist, it is Group policy to
move funds into money market deposits which would earn interest currently at a rate of approximately 3.7%.
At 30 June 2003, the Group’s currency exposure, for all of which Sterling was the functional currency, was £543,000 (2002:
£214,000) denominated in US Dollars, £275,000 (2002: £362,000) in Euros, and £nil (2002: £36,000) in Hong Kong Dollars. 
Borrowing facilities
The Group had total borrowing facilities of £18.0 million at 30 June 2003 (2002: £18.0 million), of which a total of £3.9 million
was utilised at 30 June 2003 (2002: £4.2 million). The facilities comprise unsecured overdraft facilities of £11.5 million (2002:
£11.5 million) and fixed asset backed facilities of £6.5 million (2002: £6.5 million). 
The undrawn amounts at 30 June 2003 were overdraft facilities of £11.5 million (2002: £11.2 million) and fixed asset backed
facilities of £2.6 million (2002: £2.6 million).
Fair values of financial assets and financial liabilities
The fair values of the Group’s financial assets and liabilities are not materially different to the carrying value.
Hedges
As explained above, the Group’s policy is to hedge significant transactional currency exposures by the use of forward foreign
currency contracts. At 30 June 2003 and 30 June 2002, a number of these contracts existed, the fair values of which were not
materially different from the book value.
The profits on fixed price forward sales undertaken by the Group’s zinc and aluminium alloy operations are locked in by
hedging the sales commitments against forward purchases of metal on the London Metal Exchange (LME). The gross value of
forward purchase commitments with LME brokers at 30 June 2003, which mature within 12 months, was £2.48 million (2002:
£3.08 million) on which a loss of £110,000 (2002: £213,000) would have been incurred at prices at that date; forward sales
commitments at the same date would have made profits in excess of this figure using the hedged purchase price. 36 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
18 Called up share capital
2003 2002
£000 £000
Authorised:
54,800,000 (2002: 54,800,000) Ordinary shares of 12.5p each 6,850 6,850
Allotted, called up and fully paid:
34,816,788 (2002: 34,816,788) Ordinary shares of 12.5p each 4,352 4,352
Executive Share Option Scheme
Options are granted to eligible directors and employees according to the rules of the Scheme. They are exercisable ordinarily
between three and ten years from the date of the grant.
Savings Related Share Option Scheme
This Scheme enables directors to invite eligible directors and employees to apply for options which would be linked to a five
year contractual saving plan. These options are normally exercisable after five years.
The Company has the following share options outstanding:
At 1 July Granted At 30 June
2002 in year Lapsed 2003
Executive Share Option Scheme:
20 October 1992 at £1.896 8,502 – 8,502 –
16 March 1993 at £2.188 25,507 – 25,507 –
20 October 1993 at £2.672 9,565 – – 9,565
14 March 1995 at £3.18 43,578 – 10,629 32,949
26 October 1998 at £1.33 54,338 – – 54,338
5 October 1999 at £1.35 175,000 – 10,000 165,000
22 March 2000 at £1.30 112,000 – 15,000 97,000
2 April 2001 at £1.065 100,000 – – 100,000
22 October 2001 at £1.025 201,000 – 25,000 176,000
11 October 2002 at £1.40 – 148,000 8,000 140,000
Total under Executive Share Option Schemes 729,490 148,000 102,638 774,852
Savings Related Share Option Scheme:
1 May 2000 at £1.21 259,676 – 55,201 204,475
19 Reserves
Group
Share Capital Profit
premium Revaluation redemption and loss
account reserve reserve account
£000 £000 £000 £000
At 1 July 2002 26,907 2,021 693 532
Loss retained in the year –– – (651)
Excess depreciation on revalued assets – (147) – 147
Goodwill written back on disposals ––– 2,388
Exchange difference on investments in subsidiary
and associated undertakings ––– (9)
At 30 June 2003 26,907 1,874 693 2,407
The cumulative amount of goodwill written off at 30 June 2003, net of goodwill relating to undertakings sold or closed, is
£39,455,000 (2002: £41,843,000). 37 The Alumasc Group plc
19 Reserves (continued)
Parent Company
Share Capital Profit
premium Revaluation Merger redemption and loss
account reserve reserve reserve account
£000 £000 £000 £000 £000
At 1 July 2002 26,907 2,265 10,606 693 11,155
Profit retained in the year –––– 275
At 30 June 2003 26,907 2,265 10,606 693 11,430
The Company has not presented its own profit and loss account in accordance with the exemptions allowed by Section 230 of
the Companies Act 1985. The profit before dividend dealt with in the Company amounted to £3,310,000 (2002: £3,056,000).
20 Note on historical cost profits and losses
2003 2002
£000 £000
Profit on ordinary activities before taxation 4,462 7,477
Difference between the historical cost depreciation charge and the actual 
charge for the year calculated on the revalued amount 147 147
Historical cost profit on ordinary activities before taxation 4,609 7,624
Historical cost (loss)/profit retained for the financial year (504) 2,398
21 Reconciliation of operating profit to net cash inflow from operating activities
2003 2002
£000 £000
Operating profit 7,687 7,877
Business closure costs (870) –
Depreciation 3,964 3,811
Amortisation of goodwill 8 8
Loss/(profit) on the disposal of tangible fixed assets and investments 21 (33)
Decrease/(increase) in stocks 299 (1,101)
(Increase)/decrease in debtors (2,493) 1,133
Increase in creditors 1,314 1,713
Decrease in provisions and other long term liabilities (466) (1,137)
9,464 12,271
Included in movements in stocks, debtors and creditors is an outflow of £607,000 (2002: £nil) relating to closure costs shown
within discontinued activities.
22 Reconciliation of net cash flow to movement in net cash/(debt)
2003 2002
£000 £000
Increase in cash in the year 2,699 5,981
Cash inflow from increase in debt and lease financing – (2,054)
Repayment of debt 688 116
Change in net cash from cash flows in the year 3,387 4,043
New medium term secured borrowings – (1,822)
Movement in net cash in the year 3,387 2,221
Net debt at start of year (1,851) (4,072)
Net cash/(debt) at end of year 1,536 (1,851) 38 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
23 Analysis of net cash/(debt)
At 1 July Cash At 30 June
2002 flow 2003
£000 £000 £000
Cash at bank and in hand 2,231 2,377 4,608
Overdraft (322) 322 –
1,909 2,699 4,608
Medium term secured borrowings (3,760) 688 (3,072)
Net cash/(debt) (1,851) 3,387 1,536
24 Cash flows relating to non-operating exceptional items
Within capital expenditure and financial investment cash flows, proceeds from the sale of tangible fixed assets of £1,520,000
include cash flows relating to non-operating exceptional items of £1,233,000.
25 Reconciliation of movement in shareholders’ funds
2003 2002
£000 £000
Profit attributable to shareholders 2,384 5,199
Dividends (3,035) (2,948)
(651) 2,251
Exchange difference (9) (2)
Goodwill written back on disposals 2,388 –
Net increase in shareholders’ funds 1,728 2,249
Opening shareholders’ funds 34,505 32,256
Closing shareholders’ funds 36,233 34,505
26 Commitments to pension schemes
The Group has continued to account for pensions in accordance with SSAP 24 and the disclosures given in (a) below are
those required by that Standard. Phased transitional disclosures under FRS 17 Retirement Benefits, to the extent not given in
(a) are set out in (b).
(a) The Group’s pension schemes
The Group operates a number of defined benefit and defined contribution schemes, funded by the payment of contributions
into separately administered trust funds. The defined benefit schemes, which were closed to new members in October 1999,
provide defined benefits based on final pensionable pay. External professional actuaries value the schemes triennially using the
“projected unit” method in order to determine the necessary funding contributions to be paid. 
Pension costs for the defined benefit schemes were £1,102,000 (2002: £721,000), and for the defined contribution schemes
were £453,000 (2002: £358,000).
The two principal defined benefit schemes are The Alumasc Group Pension Scheme and The Benjamin Priest Group Pension
Scheme. The most recent valuation dates for these schemes are 1 April 2002 and 6 April 2001 when the market values of the
scheme assets were £26,008,000 and £33,108,000 respectively and the actuarial values of the assets represented 85% and
87% respectively of the value of the accrued benefits after allowing for expected future earnings increases. The main actuarial
assumptions employed for this purpose in respect of the Alumasc Scheme are that the rate of investment returns will exceed
increases in earnings by 1.5% and exceed the increase in pension by 3.5%. The comparable assumptions for increases in
earnings and pensions in respect of the Benjamin Priest Scheme are 2% and 3%; in respect of the valuation of assets, market
values have been used. 39 The Alumasc Group plc
26 Commitments to pension schemes (continued)
A provision of £1,800,000 (2002: £2,125,000) is included in creditors, this being the excess of the accumulated pension cost
over the funded amount and the deficit on the Benjamin Priest Scheme recognised under FRS 7. The rate of contributions will
be reassessed regularly in accordance with actuarial advice. Company contributions to the schemes include £650,000 to
eliminate the past service shortfall over ten years. This amount will increase to £1 million from 1 July 2003.
Under the “projected unit” method, for closed schemes the amounts allocated to service cost in future periods will tend to be
higher as the members of the schemes approach retirement.
(b) FRS 17 Retirement Benefits
The actuarial valuations performed on 1 April 2002 and 6 April 2001 were updated to 30 June 2003 by a qualified independent
actuary. The major assumptions used by the actuary were (in normal terms):
2003 2002 2001
Rate of increase in salaries 3.63% 3.66% 4.15%
Rate of increase of pensions in payment and deferment 2.63% 2.66% 2.65%
Discount rate 5.25% 5.80% 6.27%
Inflation assumption 2.63% 2.66% 2.65%
The assets in the schemes and the expected rate of return were: 
2003 2003 2002 2002 2001 2001
% £000 % £000 % £000
Equities 7.54 26,270 7.96 29,510 7.23 34,771
Bonds/Gilts 4.54 15,835 4.96 15,469 5.23 16,248
Corporate bonds 5.25 7,132 5.80 7,427 6.27 8,082
Total market value of assets 49,237 52,406 59,101
Actuarial value of liability (75,983) (67,097) (59,384)
Pension liability before taxation (26,746) (14,691) (283)
Related deferred tax asset 8,024 4,407 85
Net pension liability (18,722) (10,284) (198)
2003 2002 2001
Net Profit and Net Profit and Net Profit and
assets loss account assets loss account assets loss account
£000 £000 £000 £000 £000 £000
Balance at 30 June 36,233 2,407 34,505 532 32,256 (1,864)
Add pension liability at 30 June 1,800 1,800 2,125 2,125 2,729 2,729
Less deferred tax credit at 30% (300) (300) (360) (360) – –
Less net pension liability under FRS 17 (18,722) (18,722) (10,284) (10,284) (198) (198)
Revised balance at 30 June 19,011 (14,815) 25,986 (7,987) 34,787 667
Analysis of amount to be charged to operating profit once FRS 17 is adopted
Year to Year to
30 June 30 June
2003 2002
£000 £000
Service cost 982 1,019
Past service cost 91 –
Total operating charge 1,073 1,019 40 The Alumasc Group plc
Notes on the Accounts
For the year ended 30 June 2003
26 Commitments to pension schemes (continued)
Analysis of net return on pension scheme
Year to Year to
30 June 30 June
2003 2002
£000 £000
Expected return on pension scheme assets 3,471 3,795
Interest on pension liabilities (3,820) (3,649)
(Interest cost)/net return (349) 146
Analysis of amount to be recognised in Statement of Total Recognised Gains and Losses once FRS 17 is adopted
Year to Year to
30 June 30 June
2003 2002
£000 £000
Actual return less expected return on assets (4,851) (8,145)
Experience losses on liabilities (576) (1,496)
Changes in assumptions (6,875) (5,117)
Actuarial loss to be recognised in Statement of Total Recognised Gains and Losses (12,302) (14,758)
Note that when FRS 17 is adopted the amounts to be recognised in the Statement of Total Recognised Gains and Losses will
be reduced by a deferred tax credit at 30%.
Movement in deficit during the year once FRS 17 is adopted 
Year to Year to
30 June 30 June
2003 2002
£000 £000
Deficit in scheme at beginning of year (14,691) (283)
Movement in year:
Current service cost (982) (1,019)
Contributions 1,669 1,223
Past service costs (91) –
Net (interest cost)/return on assets (349) 146
Actuarial loss (12,302) (14,758)
Deficit in scheme at end of year (26,746) (14,691)
Note that when FRS 17 is adopted the amounts to be reflected in the movement in deficit during the year will be reduced by a
deferred tax credit at 30%, and by the release of existing pension credits of £1,800,000, less associated deferred tax.
History of experience gains and losses 
Financial year Financial year
ending in ending in
2003 2002
Difference between expected and actual return on scheme assets:
– Amount (£000) (4,851) (8,145)
– Percentage of scheme assets (10%) (16%)
Experience gains and losses on scheme liabilities:
– Amount (£000) (576) (1,496)
– Percentage of scheme liabilities (1%) (2%)
Total amount recognised in Statement of Total Recognised Gains and Losses:
– Amount (£000) (12,302) (14,758)
– Percentage of scheme liabilities (16%) (22%) 41 The Alumasc Group plc
27 Financial commitments
Capital commitments
At 30 June 2003 £502,000 (2002: £529,000) of capital expenditure had been authorised and contracted by the Group. 
The Company had no financial commitments at the year end (2002: £nil).
Annual operating lease commitments
Group
At 30 June 2003 the Group was committed to making the following payments during the next year in respect of operating
leases:
Other operating leases Land and buildings
2003 2002 2003 2002
£000 £000 £000 £000
Operating leases which expire:
Within one year 7 7 146 123
Within two to five years 351 345 62 77
In over five years – – 297 454
358 352 505 654
Parent Company
The Company had no operating lease commitments at the year end (2002: £nil).
28 Disposal/closure of business activities
During the year the business of Alumasc Grundy, part of Alumasc Limited, was closed and Leonardo Internet Limited, in which
the Group had a 70.3% holding, was sold. Amounts are shown within discontinued activities with details as follows:
Alumasc Leonardo
Grundy Internet Total
£000 £000 £000
Operating (loss)/profit for the year (63) 12 (51)
Business closure costs (870) – (870)
Loss on disposal – (5) (5)
(870) (5) (875)
Goodwill previously written off to reserves written off through
the profit and loss account under FRS 2 (2,388) – (2,388)
(Loss)/profit on ordinary activities (3,321) 7 (3,314)
Net cash proceeds from sale of business activities were £1,000, comprising the Group’s share of the total consideration being
£141,000, less disposal costs £32,000, less cash disposed of with the business £108,000.
The business sold during the year contributed £9,000 to the Group’s net operating cash flows, and utilised £6,000 for capital
expenditure.
There is no tax credit in respect of the goodwill write off of £2,388,000.
The tax credit in respect of the business closure costs and loss on sale is £250,000. 42 The Alumasc Group plc
2003 2002 2001 2000 1999
£000 £000 £000 £000 £000
Turnover (continuing activities):
Engineering products 81,293 75,668 70,219 76,177 68,831
Building products 36,132 34,862 33,442 34,236 34,382
117,425 110,530 103,661 110,413 103,213
Trading profit 7,994 6,545 4,323 9,348 8,586
Pension deficit (cost)/surplus credit (256) 259 245 291 293
Operating profit before exceptional items 7,738 6,804 4,568 9,639 8,879
Exceptional items 305 –– – (236)
Share of operating profit in associates 55 60 8 111 100
Net interest (322) (460) (328) (271) (453)
Profit before taxation (continuing) 7,776 6,404 4,248 9,479 8,290
(Loss)/profit before taxation (discontinued) (3,314) 1,073 (1,240) 1,061 (17,607)
Profit/(loss) before taxation 4,462 7,477 3,008 10,540 (9,317)
Taxation 2,056 2,254 928 2,957 642
Profit/(loss) on ordinary activities after taxation 2,406 5,223 2,080 7,583 (9,959)
Equity minority interest (22) (24) 65 145 (21)
Profit/(loss) for the financial year attributable to shareholders 2,384 5,199 2,145 7,728 (9,980)
Dividends 3,035 2,948 2,948 3,323 3,429
(Loss)/profit retained for the financial year (651) 2,251 (803) 4,405 (13,409)
Shareholders’ funds 36,233 34,505 32,256 38,816 36,594
Net cash/(debt) 1,536 (1,851) (4,072) 4,839 (689)
Earnings per share (on continuing activities) 15.7p 12.8p 8.7p 17.5p 15.8p
Dividends per share 8.75p 8.5p 8.5p 8.5p 8.5p
Dividend cover (on continuing activities) 1.8 1.5 1.1 2.1 1.8
Shareholders’ Statistics
Ordinary shareholders at 30 June 2003
Shareholders Ordinary shares
Number Number
Shareholding range:
1 – 999 537 266,922
1,000 – 9,999 809 2,025,325
10,000 – 49,999 88 1,793,528
50,000 – 99,999 20 1,463,349
100,000 and over 37 29,267,664
1,491 34,816,788
Five Year Summary 43 The Alumasc Group plc
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of The Alumasc Group plc will be held at Founders’ Hall, No.1 Cloth Fair,
London EC1A 7HT at 10.30 am on Thursday 16 October 2003, for the following purposes:
Ordinary business
1To receive the reports of the directors and auditors and the accounts for the year ended 30 June 2003
2To receive the report of the Remuneration Committee for the year ended 30 June 2003
3To declare a final dividend of 6.3p per share
4To re-elect Jon Pither as a director
123
5To re-elect David Sowerby as a director
6To re-appoint Ernst & Young LLP as auditors and to authorise the directors to fix their remuneration
1
Member of Nomination Committee
2
Member of Remuneration Committee
3
Member of Audit Committee
To consider, and if thought fit, to pass the following Resolutions as to which Resolution 7 shall be proposed as an Ordinary
Resolution and Resolutions 8 and 9 shall be proposed as Special Business.
7 That the directors be and are hereby generally and unconditionally authorised in accordance with Section 80 of the Companies
Act 1985 to exercise all the powers of the Company to allot relevant securities (as defined in Section 80(2) of that Act) up to an
aggregate nominal amount of £1,573,116 provided that this authority shall expire at the conclusion of the next Annual General
Meeting of the Company, save that the Company shall be entitled to make offers or agreements before the expiry of such
authority which would or might require relevant securities pursuant to any such offer or agreement as if this authority had not
expired; and all unexercised authorities previously granted to the directors are hereby revoked.
8 That the directors be and hereby are empowered pursuant to Section 95 of the Companies Act 1985 to allot equity securities
as defined in Section 94(2) of that Act for cash pursuant to the authority conferred by Resolution 7 above as if Section 89(1) of
that Act did not apply to any such allotment provided that this power shall be limited to:
(i) the allotment of equity securities in connection with a rights issue or other offer of securities in favour of the holders of
ordinary shares on the register of members at such dates as the directors may determine where the equity securities
respectively attributable to the interests of the ordinary shareholders are proportionate (as nearly as may be) to the
respective numbers of ordinary shares held by them on such record dates subject to such exclusions or other
arrangements as the directors may deem necessary or expedient to deal with fractional entitlements or legal or practical
problems arising under the laws of any overseas territory or the requirements of any regulatory body or stock exchange or
by virtue of shares being represented by depository receipts or any other matter whatsoever; and
(ii) the allotment (otherwise than pursuant to sub paragraph (i) above) to any person or persons of equity securities up to an
aggregate nominal amount of £217,605;
and shall expire on the date of expiry of the authority conferred by Resolution 7 above, save that the Company shall be entitled
to make offers or agreements before the expiry of such power which would or might require equity securities to be allotted
after such expiry and the directors shall be entitled to allot equity securities pursuant to any such offer or agreement as if the
power conferred hereby had not expired.
9 That the Company pursuant to Article 46 of the Company’s Articles of Association be generally and unconditionally authorised
to make market purchases (within the meaning of Section 163(3) of the Companies Act 1985) of ordinary shares of 12.5p each
in the Company provided that:
(i) the maximum number of ordinary shares hereby authorised to be acquired is such a number as represents 14.9% of the
issued share capital of the Company on 16 October 2003;
(ii) the minimum price (exclusive of taxes and expenses) which may be paid for such ordinary shares is 12.5p per share;
(iii) the maximum price (exclusive of taxes and expenses) which may be paid for such ordinary shares is an amount equal to
105% of the average of the middle market quotations for ordinary shares (derived from the Daily Official List of the London
Stock Exchange Plc) for the five dealing days immediately preceding the day on which such ordinary shares are contracted
to be purchased;
(iv) the authority hereby conferred shall expire on 16 October 2004, or, if earlier, on the date of the next Annual General Meeting
of the Company except that the expiry of such authority shall not exclude any purchase of ordinary shares made pursuant
to a contract concluded before the authority expired and which would or might be executed wholly or partly after its
expiration; 44 The Alumasc Group plc
Notice of Annual General Meeting
(v) this authority supersedes the Company’s authority to make market purchases granted by Special Resolution passed on 17
October 2002.
By order of the Board
D R Sowerby Registered Office
Company Secretary Burton Latimer
9 September 2003 Kettering
Northamptonshire
NN15 5JP
Registered No
1767387
Notes to the Notice of Annual General Meeting
1. A member entitled to attend and vote at the meeting may appoint a proxy to attend, and on a poll, to vote instead of him; a
proxy need not be a member of the Company. The instrument appointing a proxy should be deposited with the Company’s
registrars, Northern Registrars, not less than 48 hours before the time of the meeting. 
2. Copies of the directors’ service contracts with the Company and the Register of Directors’ Share Interests will be available to
members for inspection at the registered office during business hours on any week day (public holidays excepted) and will be
available at the place of the Annual General Meeting for fifteen minutes prior to and during the Annual General Meeting.
3. To have the right to attend and vote at the meeting (and also for the purpose of calculating how many votes a person may
cast) a member must be entered on the Register of Members not later than 48 hours before the time appointed for the Annual
General Meeting. Changes to the Register of Members after that time will be disregarded in determining the right of any person
to attend or vote at the Annual General Meeting.
Explanatory notes to certain Resolutions to be proposed at the Annual General Meeting
(1) Resolution 7 - Renewal of directors’ authority to allot shares
By virtue of Section 80 of the Companies Act 1985 the directors require the authority of shareholders of the Company to allot
shares or other relevant securities of the Company. Resolution 7 authorises the directors to make allotments of up to an
additional 12,584,927 shares (representing approximately 36% of the issued share capital of the Company as at 9 September
2003 (including existing commitments under the Company’s share schemes)). This authority will lapse at the conclusion of the
next Annual General Meeting, unless renewed earlier. The directors have no present intention to exercise the authority
proposed to be conferred by Resolution 7.
(2) Resolution 8 - Disapplication of statutory pre-emption rights
By virtue of Section 89 of the Companies Act 1985 any issue by the Company of equity capital for cash made otherwise than
to existing shareholders on a proportional basis requires the consent of the shareholders of the Company unless the Company
has obtained the authority of the shareholders under Section 95 of the Companies Act. The purpose of Resolution 8 is to
authorise the directors to allot shares by way of rights or pursuant to an open offer or otherwise than strictly pro rata when they
consider it expedient to do so and allows them to issue for cash up to 1,740,840 shares other than on a pre-emptive basis
(representing 5% of the issued share capital of the Company as at 9 September 2003).
(3) Resolution 9 - Company’s authority to purchase its own shares
The directors consider it desirable that the Company should have the authority to make market purchases of its own shares.
The purpose of Resolution 9 is to authorise the directors generally to purchase up to 14.9% of the issued share capital of the
Company as at 16 October 2003. The directors will only exercise the authority granted by Resolution 9 (if passed) if to do so
would result in an increase in earnings per share and is in the best interests of shareholders generally. The Alumasc Group plc
Burton Latimer, Kettering
Northamptonshire NN15 5JP
Tel: 01536 383844
Fax: 01536 725069
info@alumasc.co.uk
www.alumasc.co.uk