Last checked at 10 Oct 2023 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 six months ended 30 September 2023.
The underlying demand for heavy trucks (approximately 75% of group revenue) remains strong and this continues to be reflected in the schedules that our OEM customers are providing. The high level of demand, both current and forecast, is in excess of our current foundry production capacity and initiatives are in place to capitalise on this in both the short and long term.
Input prices appear to have stabilised in the current year and in some areas we are seeing slight reductions. The higher unit cost for electricity, following the end of a fixed contract on 30 September 2022, continues to be surcharged to our customers. This will not adversely affect group profit as it is a pass-through of a direct cost increase, but will increase revenue in the six-month period compared to the prior period.
The balance sheet remains very strong with pre-dividend cash generation during the six-month period and management remain confident that the Company will continue to trade in line with market expectations.
Notice of Results
The Company intends to announce its half year results on 10 November 2023.
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