Half-year Financial Report
12/11/2025 07:00
RNS Number : 1147H
Castings PLC
12 November 2025
CASTINGS P.L.C.
INTERIM MANAGEMENT REPORT
Six months ended 30 September 2025
Interim Management Report
Overview
Revenue for the six months ended 30 September 2025 was £87.6 million (2024 - £89.2 million) with profit before tax increasing to £5.0 million (2024 - £4.1 million), in line with management expectations.
As previously announced, the underlying demand for heavy trucks (approximately 75% of group revenue) has remained at lower levels during the period with OEM's suggesting that European heavy-truck demand was 10% - 15% below the normalised trend level. The current demand landscape remains unchanged in Europe, with US demand now exhibiting similar reductions having remained buoyant for longer.
Our Ductile Castings business in Scunthorpe has started to benefit from the engineering investment made and some consolidation in the UK larger casting market; it is pleasing to report an improved short-term order book from a growing customer base.
The commissioning of the new foundry production line at our Dronfield site is now complete and production has commenced. With the additional capacity and enhanced casting dimension capability, the group is well positioned for volume increases when they start to come through.
The group maintains a strong balance sheet with cash levels of over £15 million. These have reduced very slightly in the period due to the payment of dividends totalling £6.2 million and the foundry capacity investment, offset by working capital improvements.
Foundry operations
Output during the period was 20,950 tonnes compared to 20,800 tonnes in the previous period, an increase of 0.7% (a reduction of 1.6% on a like-for-like basis excluding Ductile Castings) and external sales revenue was down by 1.9% to £86.9 million. Of the output weight for the period, 62.0% related to machined castings compared to 65.0% in the previous period.
The profit from the foundry segment of £4.0 million compares to £2.4 million in the equivalent period last year. This represents a segmental profit margin on external sales of 4.6% compared to 2.7% in the prior period.
The overall profitability in the period continues to reflect the lower sales levels, however, it is showing some improvement from the actions taken to right size the cost base. Management believe that the foundries can continue to operate more efficiently at the lower levels of demand during the second half of the year. The changes made have not been of a structural nature which ensures they can be adjusted quickly to take advantage of an upturn in volumes when they come through.
The installation of the new production facility at our Dronfield site was completed in late summer, with commissioning having taken place during September and October. The plant is now operational with new parts specific to this facility going through their development phase. The use of this plant ensures we can streamline production, enabling greater efficiencies to be realised at the current levels of output.
The increased dimensional capabilities of the new plant has enabled us to quote for parts that would previously have been outside of the group's scope. The additional capacity will also allow us to take advantage of new and growing market areas such as wind energy and truck electrification as well as pursuing further opportunities in the US.
The Ductile Castings business in Scunthorpe, producing castings up to 7 tonnes, has seen an increase in demand during Q2 helped, in part, by some consolidation in the UK larger casting market. The business is profitable at these levels of activity and, importantly, the business allows the group to expand its offering to existing customers particularly in the areas of power generation (gas and wind) and infrastructure spending.
We have invested £8.3 million in the foundry businesses during the period which was primarily focussed on the new foundry line.
Machining operation
CNC Speedwell has seen a reduction in total revenue of 5.7% to £15.2 million with external revenue increasing 12.6% to £0.7 million. The company reported a profit of £0.8 million compared to £1.1 million in the previous period.
Given the high investment levels and the capital-intensive nature of the machining business, the lower volumes continue to have an impact on profitability. Overall, the margin on total sales fell from 6.6% to 5.4%.
Investment of £0.8 million in the period has been focussed on replacing older machine types with more efficient, technologically-advanced machining centres.
Outlook
The demand schedules for the remainder of this financial year continue to reflect the lower build rates that the heavy truck OEMs have reported.
Assuming no material further reduction in demand schedules, management believes that the company will trade in line with market expectations for the full year.
In the medium term, there continues to be opportunities for growth including new parts being quoted for our existing heavy-truck customers, the increased dimensional range of the new plant, enhanced reach in the US aided by local warehousing and agent arrangements, the expansion of the customer base at our larger casting facility and the offshore energy, agriculture and rail markets.
Dividend
An interim dividend of 4.21 pence per share (2024 - 4.21 pence) has been declared and will be paid on 6 January 2026 to shareholders who are on the register at 28 November 2025.
Principal risks and uncertainties
There are a number of potential risks and uncertainties which could have a material impact on the group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results.
The directors consider that the principal risks and uncertainties remain substantially the same as those stated on pages 8 to 11 of the Annual Report for the year ended 31 March 2025. The risks identified are in respect of markets and competition; customer concentration; technological change risks within the export-dominated commercial vehicle sector competition; product quality; foreign exchange; risk of disruption to supply of raw materials or the availability of capital equipment and the price risk of input costs; information technology; and regulatory and environmental compliance risks.
Director change
Andrew Eastgate retired as a non-executive director on 26 August 2025 having not sought re-election at the AGM.
Cautionary statement
This Interim Management Report ('IMR') has been prepared solely to provide additional information to shareholders to enable them to assess the group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose. This IMR contains certain forward-looking statements. These are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
The group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
The IMR has been prepared for the group as a whole and therefore gives greater emphasis to those matters which are significant to Castings P.L.C. and its subsidiary undertakings when viewed as a whole.
By order of the board
Castings P.L.C. A. N. Jones
Lichfield Road Chairman
Brownhills 12 November 2025
West Midlands
WS8 6JZ
Consolidated Statement of Comprehensive Income
For six months ended 30 September 2025
| Unaudited Half year to 30 September 2025 £'000 | Unaudited Half year to 30 September 2024 £'000 | Audited Year to 31 March 2025 £'000 | |
| Revenue | 87,562 | 89,180 | 176,969 |
| Cost of sales | (71,767) | (74,183) | (149,478) |
| Gross profit | 15,795 | 14,997 | 27,491 |
| Distribution costs | (1,260) | (1,679) | (3,207) |
| Administrative expenses | (9,740) | (9,822) | (19,512) |
| Profit from operations | 4,795 | 3,496 | 4,772 |
| Finance income | 252 | 652 | 962 |
| Finance expenses | (72) | (37) | (107) |
| Profit before income tax | 4,975 | 4,111 | 5,627 |
| Income tax expense | (1,244) | (1,037) | (1,454) |
| Profit for the period attributable to the equity holders of the parent company | 3,731 | 3,074 | 4,173 |
| Other comprehensive income for the period: | |||
| Items that will not be reclassified to profit and loss: | |||
| Movement in unrecognised surplus on defined benefit pension schemes net of actuarial gains and losses | - | - | 165 |
| Other comprehensive income for the period (net of tax) | - | - | 165 |
| Total comprehensive income for the period attributable to the equity holders of the parent company | 3,731 | 3,074 | 4,338 |
| Earnings per share attributable to the equity holders of the parent company | |||
| Basic | 8.58p | 7.07p | 9.60p |
| Diluted | 8.52p | 7.04p | 9.56p |
| Unaudited 30 September 2025 £'000 | Unaudited 30 September 2024 £'000 | Audited 31 March 2025 £'000 | |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 77,841 | 63,446 | 66,123 |
| Right-of-use assets | 2,014 | 1,911 | 2,056 |
| 79,855 | 65,357 | 68,179 | |
| Current assets | |||
| Inventories | 28,812 | 33,604 | 32,780 |
| Trade and other receivables | 40,818 | 48,378 | 51,743 |
| Current tax assets | 787 | - | - |
| Cash and cash equivalents | 15,534 | 16,354 | 15,564 |
| 85,951 | 98,336 | 100,087 | |
| Total assets | 165,806 | 163,693 | 168,266 |
| LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 30,859 | 26,729 | 31,557 |
| Lease liabilities | 144 | 226 | 228 |
| Current tax liabilities | - | 872 | 132 |
| 31,003 | 27,827 | 31,917 | |
| Non-current liabilities | |||
| Lease liabilities | 1,995 | 1,707 | 1,901 |
| Deferred tax liabilities | 7,763 | 6,237 | 7,013 |
| 9,758 | 7,944 | 8,914 | |
| Total liabilities | 40,761 | 35,771 | 40,831 |
| Net assets | 125,045 | 127,922 | 127,435 |
| Equity attributable to equity holders of the parent company | |||
| Share capital | 4,363 | 4,363 | 4,363 |
| Share premium account | 874 | 874 | 874 |
| Treasury shares | (571) | (627) | (627) |
| Other reserve | 13 | 13 | 13 |
| Retained earnings | 120,366 | 123,299 | 122,812 |
| Total equity | 125,045 | 127,922 | 127,435 |
| Unaudited 30 September 2025 £'000 | Unaudited 30 September 2024 £'000 | Audited 31 March 2025 £'000 | |
| Cash flows from operating activities | |||
| Profit before income tax | 4,975 | 4,111 | 5,627 |
| Adjustments for: | |||
| Depreciation of property, plant and equipment and right of use assets | 4,285 | 4,195 | 8,898 |
| Loss on disposal of property, plant and equipment | - | - | 2 |
| Finance income | (252) | (652) | (962) |
| Finance expenses | 72 | 37 | 107 |
| Equity-settled share-based payment expense | 89 | 67 | 145 |
| Pension administrative costs | - | - | 165 |
| Other operating cash outflow | (43) | - | - |
| Operating cash flow before changes in working capital | 9,126 | 7,758 | 13,982 |
| Decrease/(increase) in inventories | 3,968 | (468) | 356 |
| Decrease/(increase) in receivables | 4,356 | (663) | (130) |
| Decrease in payables | (688) | (5,668) | (1,876) |
| Cash generated from operating activities | 16,762 | 959 | 12,332 |
| Tax paid | (1,413) | (664) | (1,045) |
| Interest received | 252 | 648 | 957 |
| Finance expense | (72) | (37) | (107) |
| Net cash generated from operating activities | 15,529 | 906 | 12,137 |
| Cash flows from investing activities | |||
| Dividends received from listed investments | - | 4 | 5 |
| Purchase of property, plant and equipment | (9,156) | (6,752) | (13,078) |
| Advanced payments in respect of property, plant and equipment | - | - | (6,676) |
| Proceeds from disposal of property, plant and equipment | - | - | 31 |
| Repayments from pension schemes | 1,000 | - | 3,990 |
| Advances to pension schemes | (1,236) | (1,122) | (2,334) |
| Net cash used in investing activities | (9,392) | (7,870) | (18,062) |
| Cash flow from financing activities | |||
| Dividends paid to shareholders | (6,167) | (9,209) | (11,038) |
| Net cash used in financing activities | (6,167) | (9,209) | (11,038) |
| Net decrease in cash and cash equivalents | (30) | (16,173) | (16,963) |
| Cash and cash equivalents at beginning of period | 15,564 | 32,527 | 32,527 |
| Cash and cash equivalents at end of period | 15,534 | 16,354 | 15,564 |
| Equity attributable to equity holders of the parent | ||||||
| Unaudited | Share capital £000 | Share premium £000 | Treasury shares £000 | Other reserve £000 | Retained earnings £000 | Total equity £000 |
| At 1 April 2025 | 4,363 | 874 | (627) | 13 | 122,812 | 127,435 |
| Profit for the period | - | - | - | - | 3,731 | 3,731 |
| Total comprehensive income for the period ended 30 September 2025 | - | - | - | - | 3,731 | 3,731 |
| Equity-settled share-based payments | - | - | - | - | 89 | 89 |
| Own shares transferred on vesting | - | - | 56 | - | - | 56 |
| Share option charge on vesting | - | - | - | - | (99) | (99) |
| Dividends | - | - | - | - | (6,167) | (6,167) |
| 30 September 2025 | 4,363 | 874 | (571) | 13 | 120,366 | 125,045 |
| Equity attributable to equity holders of the parent | ||||||
| Unaudited | Share capital £000 | Share premium £000 | Treasury shares £000 | Other reserve £000 | Retained earnings £000 | Total equity £000 |
| At 1 April 2024 | 4,363 | 874 | (627) | 13 | 129,367 | 133,990 |
| Profit for the period | - | - | - | - | 3,074 | 3,074 |
| Total comprehensive income for the period ended 30 September 2024 | - | - | - | - | 3,074 | 3,074 |
| Equity-settled share-based payments | - | - | - | - | 67 | 67 |
| Dividends | - | - | - | - | (9,209) | (9,209) |
| 30 September 2024 | 4,363 | 874 | (627) | 13 | 123,299 | 127,922 |
| Equity attributable to equity holders of the parent | ||||||
| Audited | Share capital £000 | Share premium £000 | Treasury shares £000 | Other reserve £000 | Retained earnings £000 | Total equity £000 |
| At 1 April 2024 | 4,363 | 874 | (627) | 13 | 129,367 | 133,990 |
| Profit for the year | - | - | - | - | 4,173 | 4,173 |
| Other comprehensive income: | ||||||
| Movement in unrecognised surplus on defined benefit pension schemes net of actuarial gains and losses | - | - | - | - | 165 | 165 |
| Total comprehensive income for the year | - | - | - | - | 4,338 | 4,338 |
| Equity-settled share-based payments | - | - | - | - | 145 | 145 |
| Dividends | - | - | - | - | (11,038) | (11,038) |
| At 31 March 2025 | 4,363 | 874 | (627) | 13 | 122,812 | 127,435 |
| Foundry operations £'000 | Machining £'000 | Elimination £'000 | Total £'000 | |
| Revenue from external customers | 86,873 | 689 | - | 87,562 |
| Inter-segmental revenue | 10,351 | 14,523 | - | 24,874 |
| Segmental result | 3,975 | 820 | - | 4,795 |
| Unallocated income: | ||||
| Finance income | 252 | |||
| Finance expenses | (72) | |||
| Profit before income tax | 4,975 | |||
| Total assets | 152,468 | 29,890 | (16,552) | 165,806 |
| Non-current asset additions | 8,343 | 813 | - | 9,156 |
| Depreciation | 2,520 | 1,765 | - | 4,285 |
| Total liabilities | (41,462) | (7,184) | 7,885 | (40,761) |
| Foundry operations £'000 | Machining £'000 | Elimination £'000 | Total £'000 | |
| Revenue from external customers | 88,568 | 612 | - | 89,180 |
| Inter-segmental revenue | 11,027 | 15,521 | - | 26,548 |
| Segmental result | 2,428 | 1,068 | - | 3,496 |
| Unallocated income: | ||||
| Finance income | 652 | |||
| Finance expenses | (37) | |||
| Profit before income tax | 4,111 | |||
| Total assets | 147,598 | 31,165 | (15,070) | 163,693 |
| Non-current asset additions | 3,186 | 2,637 | - | 5,823 |
| Depreciation | 2,375 | 1,820 | - | 4,195 |
| Total liabilities | (35,640) | (6,937) | 6,806 | (35,771) |
| Foundry operations £'000 | Machining £'000 | Elimination £'000 | Total £'000 | |
| Revenue from external customers | 175,492 | 1,477 | - | 176,969 |
| Inter-segmental revenue | 22,447 | 30,655 | (53,102) | - |
| Segmental result | ||||
| Unallocated costs: | 2,894 | 2,028 | 15 | 4,937 |
| Defined benefit pension cost | (165) | |||
| Finance income | 962 | |||
| Profit before income tax | 5,627 | |||
| Total assets | 153,887 | 28,485 | (14,106) | 168,266 |
| Non-current asset additions | 10,203 | 2,988 | - | 13,191 |
| Depreciation | 5,027 | 3,871 | - | 8,898 |
| Total liabilities | (42,976) | (6,677) | 8,822 | (40,831) |
| Half year to 30 September 2025 £'000 | Half year to 30 September 2024 £'000 | |
| Final dividend of 14.19p per share for the year ended 31 March 2026 | ||
| (2025 - 14.19p per share) | 6,167 | 6,167 |
| Supplementary dividend of 7.00p per share for the year ended 31 March 2024 | ||
| (2024 - nil) | - | 3,042 |
| 6,167 | 9,209 |
| Unaudited Half year to 30 September 2025 | Unaudited Half year to 30 September 2024 | Audited Year to 31 March 2025 | |
| Profit after tax (£'000) | 3,731 | 3,074 | 4,173 |
| Weighted average number of shares - basic calculation | 43,476,771 | 43,458,068 | 43,458,068 |
| Weighted average number of shares - diluted calculation | 43,766,800 | 43,672,384 | 43,672,384 |
| Earnings per share - basic | 8.58p | 7.07p | 9.60p |
| Earnings per share - diluted | 8.52p | 7.04p | 9.56p |