Castings plc is a market leading iron casting and machining group based in the UK, supplying both the domestic and export markets. The company is listed on the LSE main market and has a market cap of £150m. Full year results to 31st
March 2022 were released on 15th June.
We were delighted to welcome the CEO, Adam Vicary and FD, Steve Mant, to a webinar for private investors to talk about how they are performing in the current environment. A recording of the webinar is available here.
Castings is a modern business built on foundations which were established back in 1835 and still melts, pours, moulds and machines iron castings. The company is structured into three operating businesses. The original Castings business is based at the Brownhills foundry in the Midlands, produces 30k tonnes/year and employs 390 staff. The company’s machining business is based on the same site and was acquired in 1996. The machining business, CNC Speedwell, operates over 100 CNC computer-controlled machines and employ 350 staff. The largest foundry, William Lee, located at Dronfield in the Peak District, produces 4s0k tonnes/year and employs 441 staff. The group produces ductile iron, SG iron, austempered ductile iron (ADI), SiMo and Ni-resist castings up to 45kg in weight. There is foundry capacity of 70,000 tonnes per annum from a mix of high volume and specialist lines.
The business is predominantly focused on the heavy truck sector which accounts for 70% of revenue. Within this, 33% is generated by engine components and 37% by chassis components. The biggest customers are Scania, Volvo, Daimler and Daf. Daimler is the fastest growing of these and Scania has fallen a little recently due to problems Scania have had sourcing semiconductors. Automotive accounts for a further 12% of revenue and the balance of 18% comes from a mixture of agriculture, rail and wind power. Geographically 71% of revenues are generated from European customers with UK accounting for 21% of revenues and the rest of the world 8%. The RoW segment has increased from 3% over the last three years driven by the growth in US sales.
Looking back over the year the first quarter started well with volumes back to pre-covid levels, then in the second quarter scheduled production levels were not achieved due to customer supply chain issues before a steadier production level was resumed in the second half which…
