Alesco Returns But Warns of Tough Times

Alesco Corporation (ASX:ALS) is back on the black but has warned the industry could expect an even worse year ahead.

After suffering a loss of $124.3 million, the construction products supplier raked in a net profit of $13.6 million for the full year to end of May. Alesco will pay shareholders a fully franked special dividend of 5.5 cents a share.

The special dividend came from the $43 million sale of its water products division and non-core tyres business, said Alesco chief executive Peter Boyd.

The company reported earnings before interest, tax, depreciation and amortisation of $51.2 million, down 11 percent from $57.2 million the previous year. Gearing fell 15.3 percent from 23.2 percent and net debt of $78.1 million dropped from $128.9 million last year.

Boyd said, however, that trading conditions would worsen next year with a flat residential renovation market and weakening consumer confidence.

''My sense is that [trading conditions] will be more challenging in 2012 than they were in 2011,'' he said. ''Forecasts around housing completions are to the negative and with consumer confidence levels on the decline, that's likely to affect products going into the renovation sector.''

He also said management changes were introduced to boost revenue in two of Alesco's loss-making businesses.

Alesco shares rose 5.6 percent to close at $2.84 yesterday.