Last checked at 11 Jan 2018 07:00
Castings PLC
Trading update
The performance of the foundry businesses continue to be in line with market expectations supported by steady demand from our commercial vehicle customer base.
Following the change of management and completion of the review of the machining operation, certain projects have been identified that are not considered suitable for the group. The total cost of exiting these projects is £1.3m which comprises write-downs of specific capital and tooling equipment and exiting contract commitments to purchase equipment.
In addition to these project specific items, the continued disruption in supply has resulted in higher than previously anticipated costs, particularly in relation to excessive transport, to ensure customer schedules are met.
The total financial impact in 2017/18 of the reorganisation of the machining business is expected to be a non-recurring cost of £3.4m, including £1.2m of excessive transport costs. After taking into account these costs, the directors expect the group profit for the year to be in the range of £12.5m - £13.5m, with positive cash flows being generated.
The group are pleased to announce that Steve Barwell, following an interim period, has been appointed General Manager and Director of CNC Speedwell Limited. Two further additions to the management team have been recruited and will join by the end of March 2018.
S J Mant, Director and Secretary
Castings PLC, Lichfield Road, Brownhills, West Midlands, WS8 6JZ