REG - Castings PLC - AGM Statement

CastingsAnnouncement

16/08/2022 07:01

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RNS Number : 0708W  Castings PLC  16 August 2022

Castings plc

Interim Management Statement and AGM

 

Castings PLC announces a trading update ahead of the AGM being held today at
3.30pm at The Fairlawns Hotel and Spa, 178 Little Aston Rd, Walsall, WS9 0NU.

 

We previously reported in June that demand from our commercial vehicle
customers (70% of group revenue) was increasing; it is pleasing to note that
these higher levels have been maintained with relatively little disruption
resulting from supply chain issues.

 

The forward demand schedules continue to reflect the higher build rates that
the heavy truck OEMs require to satisfy their orderbooks. The group will see
the benefit of the greater content won on the new customer platforms as these
are now in production.

 

Input prices have continued to rise in the current financial year and are
being passed onto our customers. The most significant increase will be on 1
October 2022 following the end of our fixed price electricity contract. The
higher unit cost for power will be surcharged to our customers immediately and
will therefore increase revenue in the second half of the year. Whilst this
should not adversely affect group profit as it is a pass-through of a direct
cost increase, there will be a dilutionary impact on the margin percentage.

 

We continue to invest in automation technologies to improve our productivity
and profitability as evidenced by the commissioning of a partially automated
pouring process on one of our largest production lines.

 

 

B.J.Cooke, Chairman

Castings plc, Lichfield Road, Brownhills, West Midlands, WS8 6JZ

16 August 2022

 

 

 

 

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