Last checked at 1 May 2024 07:00
Castings PLC
Trading Update and Notice of Results
Castings PLC ("Castings" or "the Company"), the leading iron casting and machining group primarily focused on the European heavy truck market, announces a trading update in respect of the year ended 31 March 2024 with the result expected to be marginally ahead of market expectations.
The underlying demand for heavy trucks (approximately 75% of group revenue) was particularly strong in the first half of the year. The backlog demand from the Covid period, and the well-publicised supply constraint issues, appears to have now been absorbed by the OEMs and forward schedules are now at a lower level.
Input prices have remained relatively stable during the year. Electricity surcharges have continued to be applied in the period since 1 October 2022 at a relatively consistent level but have reduced from 1 April 2024 to reflect lower energy prices.
The balance sheet remains strong. The level of investment has been higher than in recent years and will continue to be so as the new foundry line progresses. Other investments have been focused on replacement equipment, robotics and AI, and sustainability initiatives including solar panels and energy efficient chilling systems in the machine shop.
Notice of Results
The company intends to announce its full year results on 12 June 2024.
Castings PLC +44 (0) 1543 374341
S J Mant, Director and Company Secretary
Canaccord Genuity Limited (Joint Broker) +44 (0) 20 7523 8000
Adam James
Zeus Capital Limited (Joint Broker) +44 (0) 20 3829 5000
Dominic King (Corporate Broking)
David Foreman (Investment Banking)
Notes for Editors
Castings PLC is a leading iron casting and machining group based in the UK, supplying both the domestic and export markets. It has gross foundry capacity of 70,000 tonnes p.a. and is highly invested with the latest automation technologies. This enables high mix production of low volume parts on a just in time basis to provide a competitive edge. Castings has long-term relationships with the major OEMs in its core European heavy truck market and their platforms typically last over 10 years in production. In addition to the commercial vehicle sector, Castings PLC also supplies the wind power, agriculture, rail and material handling markets. www.castings.plc.uk