Last checked at 16 Aug 2022 07:00
Castings plc
Interim Management Statement and AGM
Castings PLC announces a trading update ahead of the AGM being held today at 3.30pm at The Fairlawns Hotel and Spa, 178 Little Aston Rd, Walsall, WS9 0NU.
We previously reported in June that demand from our commercial vehicle customers (70% of group revenue) was increasing; it is pleasing to note that these higher levels have been maintained with relatively little disruption resulting from supply chain issues.
The forward demand schedules continue to reflect the higher build rates that the heavy truck OEMs require to satisfy their orderbooks. The group will see the benefit of the greater content won on the new customer platforms as these are now in production.
Input prices have continued to rise in the current financial year and are being passed onto our customers. The most significant increase will be on 1 October 2022 following the end of our fixed price electricity contract. The higher unit cost for power will be surcharged to our customers immediately and will therefore increase revenue in the second half of the year. Whilst this should not adversely affect group profit as it is a pass-through of a direct cost increase, there will be a dilutionary impact on the margin percentage.
We continue to invest in automation technologies to improve our productivity and profitability as evidenced by the commissioning of a partially automated pouring process on one of our largest production lines.
B.J.Cooke, Chairman
Castings plc, Lichfield Road, Brownhills, West Midlands, WS8 6JZ
16 August 2022