Business Description:
Alesco Corporation Limited (ALS) supplies the building products to trade and industrial customers in Australia and New Zealand. ALS operates through three divisions; Construction Products & Equipment, Cabinet & Window Products, and Garage Doors & Openers.

Strategy Analysis:
The strategy is to create value by managing a portfolio of niche industrial product distribution businesses. Growth in brands, products and services comes from acquisitions and organically. Acquisitions are made in franchises with strong market shares in growing markets. Financial performance is lifted through restructuring and efficiency measures. Property is the largest exposure, with new housing and renovations representing around 75% annual earnings. Other key segments are non-residential construction. Alesco Corporation reported NPAT of $13.57m for the year ended 31 May 2011. Revenues from ordinary activities were $679.87m, down 12.1% from last year. Basic and Diluted EPS was 15.56 cents compared to 12.51 cents last year. Net operating cash flow was $50.4m compared to $56.9m last year. The final dividend declared was 7 cents, taking the full year dividend to 14 cents compared with 7 cents last year. The company remains cautious about the year ahead. However, its disciplined operational approach and Project Restore business improvement program places the company in a good position to counter what are likely to be challenging market conditions over the next 12 months.