Castings Regulatory News (CGS)

29 Nov 2007 09:00

Castings PLC29 November 2007 INTERIM FINANCIAL REPORT 2007 AND TRADING STATEMENT Chairman's Statement Profit before tax for the six months ended 30th September 2007 was £6.27mcompared with £4.93m in the period ended 30th September 2006. It is pleasing to report turnover has increased from £38.9m to £45.8m. This ispartly due to recovery of raw material and energy price increases, but theunderlying turnover has increased by approximately 13.9%. All our major customers are enjoying high demand for their products and hence weare also enjoying high demand for our castings and machined products. It was decided in August 2007 to build a new moulding line at William Lee whichwill increase overall foundry capacity by 20% when in full production.Development work is progressing well and it is anticipated the foundry will beavailable for production early in 2009. This will depend on cooperation withplanning departments and the supply of electricity to the site, but it is hopedthese matters will be resolved without delaying the project and help to createover 80 new manufacturing jobs in the North Derbyshire area. The anticipatedcost of this investment is £11m. All three companies, Castings Brownhills, William Lee and CNC Speedwell, haveenjoyed good trading over the last six months and there are signs that this highdemand will continue into the foreseeable future. The group has set out the principal risks which could impact the performance ofthe group in its Annual Report and Accounts 2007. In the view of the Board therehas been no material change in the risks. An interim dividend of 2.71 pence per share has been declared and will be paidon 11th January 2008 to shareholders who are on the register at 14th December2007. BRIAN J. COOKE Chairman 29th November 2007 Castings p.l.c.Lichfield RoadBrownhillsWest MidlandsWS8 6JZ Consolidated Income StatementFor six months ended 30th September 2007(Unaudited) Half year to Half year to Year to 30th September 30th September 31st March 2007 2006 2007 £'000 £'000 £'000 ----------- ---------- ---------Revenue 45,760 38,938 86,230 Cost of sales (33,572) (28,630) (63,701) ----------- ---------- --------- Gross profit 12,188 10,308 22,529 Distribution costs (628) (605) (1,293) Administrative expenses (5,985) (5,367) (9,676) ----------- ---------- --------- Profit from operations 5,575 4,336 11,560 Finance income 691 598 1,497 ----------- ---------- --------- Profit before income tax 6,266 4,934 13,057 Income tax expense (1,880) (1,480) (3,647) ----------- ---------- --------- Profit for the periodattributable to the equityholders of the parent company 4,386 3,454 9,410 ----------- ---------- --------- Earnings per shareBasic and diluted 10.05p 7.92p 21.57p ----------- ---------- --------- Consolidated Balance Sheet 30th September 2007(Unaudited) 30thSeptember 30thSeptember 31stMarch 2007 2006 2007 £'000 £'000 £'000Assets Non-current assetsProperty, plant and equipment 34,999 35,047 35,495Financial assets 824 1,025 823Deferred tax asset - 574 - ---------- ---------- ---------- 35,823 36,646 36,318 ---------- ---------- ---------- Current assetsInventories 5,080 3,818 6,318Trade and other receivables 20,699 19,493 21,784Cash and cash equivalents 28,314 26,155 25,452 ---------- ---------- ---------- 54,093 49,466 53,554 ---------- ---------- ---------- Total assets 89,916 86,112 89,872 ---------- ---------- ---------- Liabilities Current liabilitiesTrade and other payables 14,007 13,261 16,212Current tax liabilities 1,710 962 883 ---------- ---------- ---------- 15,717 14,223 17,095 ---------- ---------- ---------- Non-current liabilitiesRetirement benefit obligations - 1,913 -Deferred tax liabilities 2,204 2,325 2,141 ---------- ---------- ---------- 2,204 4,238 2,141 ---------- ---------- ----------Total liabilities 17,921 18,461 19,236 ---------- ---------- ---------- Net Assets 71,995 67,651 70,636 ---------- ---------- ---------- Shareholders' equityShare capital 4,363 4,363 4,363 Share premium account 874 874 874 Other reserves 13 13 13 Retained earnings 66,745 62,401 65,386 ---------- ---------- ---------- Total equity 71,995 67,651 70,636 ---------- ---------- ---------- Consolidated Cash Flow Statement For six months ended 30th September 2007(Unaudited) Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 £'000 £'000 £'000Cash flows from operating activitiesCash generated fromoperations 8,464 7,285 12,582Finance income 691 598 1,497Tax paid (990) (1,792) (2,858) ---------- ---------- --------- Net cash generated fromoperating activities 8,165 6,091 11,221 Cash flows from investing activitiesPurchase of property, plantand equipment (2,275) (4,818) (9,637)Purchase of financial assets - (47) (47)Proceeds from disposal ofproperty, plant andequipment - - 45Proceeds from disposal offinancial assets - 153 220 ---------- ---------- ---------Net cash used in investingactivities (2,275) (4,712) (9,419) Cash flow from financing activitiesDividends paid toshareholders (3,028) (2,910) (4,036) ---------- ---------- ---------Net cash used in financingactivities (3,028) (2,910) (4,036) Net increase/(decrease) incash and cash equivalents 2,862 (1,531) (2,234)Cash and cash equivalents atbeginning of period 25,452 27,686 27,686 ---------- ---------- --------- Cash and cash equivalents atend of period 28,314 26,155 25,452 ---------- ---------- --------- Consolidated Statement of Recognised Income and Expense For six months ended 30th September 2007(Unaudited) Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 £'000 £'000 £'000 Profit for period 4,386 3,454 9,410 Change in fair value ofavailable for sale financialassets 1 (8) (143) Actuarial (losses)/ gains ondefined pension schemes - - (2,500) Tax effect of gains andlosses recognised directlyin equity - (10) 780 ----------- ---------- --------- Total recognised income forperiod 4,387 3,436 7,547 ----------- ---------- --------- Supplementary Statement Reconciliation of profit before income tax to net cash inflow from operatingactivities For six months ended 30th September 2007 (Unaudited) Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 £'000 £'000 £'000 Profit before tax 6,266 4,934 13,057 Depreciation 2,771 2,337 6,663 Finance income (691) (598) (1,497) Excess of employer pensioncontributions over incomestatement charge - - (4,413) (Increase)/decrease ininventories 1,238 1,458 (1,042) (Increase)/decrease inreceivables 1,085 956 (1,335) Increase/(decrease) inpayables (2,205) (1,802) 1,149 ---------- ---------- --------- Net cash inflow fromoperating activities 8,464 7,285 12,582 ---------- ---------- --------- Notes 1. BASIS OF PREPARATION Financial information presented here is unaudited. Comparatives for the fullyear ended 31st March 2007 are not the Group's full statutory accounts for thatyear. A copy of those accounts has been delivered to the Registrar of Companies.The auditors' report on those accounts was unqualified, did not contain anemphasis of matter paragraph and did not contain a statement under Section 237(2)-(3) of the Companies Act 1985. The condensed consolidated half-yearly financial information for the half-yearended 30th September 2007 has been prepared in accordance with IAS 34, 'Interimfinancial reporting' as adopted by the European Union. The half-yearly condensedconsolidated financial report does not include all the information anddisclosures required in the annual financial statements and should be read inconjunction with the Group's annual financial statements as at 31st March 2007. 2. ACCOUNTING POLICIES The interim financial statements have been prepared using the same accountingpolicies as used in the preparation of the Group's annual financial statementsfor the year ended 31st March 2007. 3. SEGMENT INFORMATION The geographical analysis of revenues by destination for the period is asfollows: Half year Half year Year to 30th to 30th to 31st September 2007 September March £'000 2006 2007 £'000 £'000United Kingdom 16,559 13,471 30,321Sweden 8,691 7,467 17,145Rest of Europe 19,683 17,173 37,377North and South America 827 827 1,375Other - - 12 -------- --------- -------- 45,760 38,938 86,230 -------- --------- -------- All turnover arises in the United Kingdom for the Group's continuing principalactivity, which the directors believe to be the only class of the businesscarried out by the Group. The directors do not consider there to be any significant seasonality orcyclicality to the results of the Group. 4. DIVIDENDS Half year Half year to 30th to 30th September September------------------------------- --------- ---------Amounts recognised as distributions toshareholders in the period: 2007 2006 £'000 £'000------------------------------- --------- ---------Final dividend of 6.94p for the yearended 31st March 2007 (2006: 6.67p)per share 3,028 2,910------------------------------- --------- --------- The directors have declared an interim dividend in respect of the financial yearending 31st March 2008 of 2.71 pence per share (2007: 2.58p), which will be paidon 11th January 2008. 5. EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE Earnings per share is calculated by dividing the profit attributable to ordinaryshareholders by the weighted average number of ordinary shares outstandingduring the period. There are no share options or other potentially issuableshares, hence the diluted earnings per share is the same calculation.--------------------------------------------- Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 £'000 £'000 £'000 Profit after tax 4,386 3,454 9,410 ---------- --------- --------- Weighted average number ofshares 43,632,068 43,632,068 43,632,068 ---------- --------- --------- Earnings per share - basicand diluted 10.05p 7.92p 21.57p ---------- --------- --------- Statement of Directors' Responsibilities The directors' confirm that the condensed set of financial statements has beenprepared in accordance with IAS 34 as adopted by the European Union and that theChairman's Statement herein includes a fair view of the information required byDTR 4.2.7 and DTR 4.2.8. The directors of Castings p.l.c. are listed on the following page. By order of the Board J.C.Roby FCA Finance Director 29th November 2007 This information is provided by RNS The company news service from the London Stock Exchange