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(Alliance News) - Castings PLC on Friday posted a swing to loss for the first half of financial 2021 but increased its dividend payout, highlighting a strong balance sheet.
Shares in the iron caster were trading 0.9% higher at 336.00 pence each on Friday morning in London.
For the six months ended September 30, Castings posted a pretax loss of GBP627,000, swinging from a profit of GBP7.3 million the year prior. This was as revenue fell 43% year-on-year to GBP41.7 million from GBP73.1 million.
The West Midlands-based company said its performance in the first half was significantly hurt by the Covid-19 pandemic, stating that output reduced by around 80% during the first two months as the commercial vehicle sector - which represents 70% of group revenue - closed production facilities.
However, it noted that during the next four months, it saw a gradual increase in demand so that levels at the end of the first half were at around 85% of pre-Covid levels.
Casting declared an interim dividend of 3.57p, up 2.9% from 3.48p the year prior.
Looking ahead, Chair Brian Cooke said: "The current heavy-truck schedules suggest output returning to pre-Covid levels, albeit there continues to be uncertainty regarding the pandemic. Assuming these levels are realised, the group is well positioned to see the benefits of the productivity improvements in both the foundry and machining businesses. The group maintains a strong balance sheet with cash levels of GBP35.2 million after the dividend payment of GBP5.0 million."
By Ife Taiwo; ifetaiwo@alliancenews.com
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