REG - Castings PLC - Half-year Financial Report
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251112:nRSL1147Ha&default-theme=true
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 Unaudited Audited
Half year to Half year to Year to
30 September 30 September 31 March
2025 2024 2025
£'000 £'000 £'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 3,731 3,074 4,173
of the parent company
Other comprehensive income for the period:
Items that will not be reclassified to profit and loss:
Movement in unrecognised surplus on defined benefit pension - - 165
schemes net of actuarial gains and losses
Other comprehensive income for the period (net of tax) - - 165
Total comprehensive income for the period attributable 3,731 3,074 4,338
to the equity holders of the parent company
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
Consolidated Balance Sheet
as at 30 September 2025
Unaudited Unaudited Audited
30 September 30 September 31 March
2025 2024 2025
£'000 £'000 £'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
Consolidated Cash Flow Statement
For six months ended 30 September 2025
Unaudited Unaudited Audited
30 September 30 September 31 March
2025 2024 2025
£'000 £'000 £'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
Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent
Unaudited Share Share Treasury Other Retained Total
capital premium shares reserve earnings equity
£000 £000 £000 £000 £000 £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 Share Treasury Other Retained Total
capital premium shares reserve earnings equity
£000 £000 £000 £000 £000 £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 Share Treasury Other Retained Total
capital premium shares reserve earnings equity
£000 £000 £000 £000 £000 £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 - - - - 165 165
actuarial gains and losses
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
Notes
1. General information
Castings P.L.C. (the 'company') is a company domiciled in England. The
condensed consolidated interim financial statements of the company for the six
months ended 30 September 2025 comprise the company and its subsidiaries
(together referred to as the 'group').
The principal activities of the group are the manufacture of iron castings and
machining operations.
The financial information for the year ended 31 March 2025 does not constitute
the full statutory accounts for that period. The Annual Report and Financial
Statements for the year ended 31 March 2025 have been filed with the Registrar
of Companies. The Independent Auditors' Report on the Annual Report and
Financial Statements for 2025 was unqualified, did not draw attention to any
matters by way of emphasis, and did not contain a statement under 498 (2) or
(3) of the Companies Act 2006.
This report has not been audited and has not been reviewed by independent
auditors pursuant to the Financial Reporting Council guidance on Review of
Interim Financial Information.
2. Accounting policies
The annual financial statements of Castings P.L.C. are prepared in accordance
with UK-adopted international accounting standards in conformity with the
requirements of the Companies Act 2006. The condensed set of financial
statements has been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the UK.
Basis of preparation
After making enquiries, the directors have a reasonable expectation that the
company and the group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half-yearly condensed consolidated
interim financial statements.
The same accounting policies, presentation and methods of computation are
followed in the condensed consolidated interim financial statements as applied
in the group's latest annual audited financial statements.
3. Seasonality of operations
The directors do not consider there to be any significant seasonality or
cyclicality to the results of the group.
4. Segment information
For internal decision making purposes, the group is organised into four
operating companies which are considered to represent two operating segments
of the group. Castings P.L.C., William Lee Limited and Ductile Castings
Limited are aggregated into Foundry Operations and CNC Speedwell Limited is
the Machining Operation.
Inter-segment transactions are entered into under the normal commercial terms
and conditions that would be available to third parties.
The following shows the revenues, results and total assets by reportable
segment for the half year to 30 September 2025.
Foundry Machining Elimination Total
operations £'000 £'000 £'000
£'000
Revenue from external customers 86,873 689 - 87,562
Inter-segmental revenue 10,351 14,523 - 24,874
3,975 820 - 4,795
Segmental result
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)
The following shows the revenues, results and total assets by reportable
segment for the half year to 30 September 2024.
Foundry Machining Elimination Total
operations £'000 £'000 £'000
£'000
Revenue from external customers 88,568 612 - 89,180
Inter-segmental revenue 11,027 15,521 - 26,548
2,428 1,068 - 3,496
Segmental result
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)
The following shows the revenues, results and total assets by reportable
segment for the year ended 31 March 2024.
Foundry Machining Elimination Total
operations £'000 £'000 £'000
£'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)
5. Dividends
Amounts recognised as distributions to shareholders in the period:
Half year to Half year to
30 September 30 September
2025 2024
£'000 £'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
The directors have declared an interim dividend in respect of the financial
year ending 31 March 2026 of 4.21 pence per share (2024 - 4.21 pence in
respect of the year ended 31 March 2025), which will be paid on 6 January
2026.
6. Earnings per share and diluted earnings per share
Earnings per share is calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period. The diluted earnings per share includes the
outstanding share options within the weighted average number of shares figure.
Unaudited Unaudited Audited
Half year to Half year to Year to
30 September 30 September 31 March
2025 2024 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
7. Pension schemes
The group operates two defined benefit pension schemes which are closed to new
entrants and were closed to future accruals on 6 April 2009. The assets of the
schemes are independent of the finances of the group and are administered by
trustees. Both schemes are in surplus with the combined position at 31 March
2025 being an unrecognised surplus of £12,233,000.
The pension schemes are related parties of the group and during the period
£1,236,000 (2024 - £1,122,000) was paid by the group on behalf of the
schemes in respect of pension payments and administration costs. Repayments of
£1,000,000 (2024 - nil) were made during the period and, at 30 September
2025, the outstanding balance was £699,000 (2024 - £3,241,000) which is
repayable within one year.
8. Interim report
Copies of this interim management report will be available on the company's
website, www.castings.plc.uk
(file:///C:/Users/S.Mant/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/XHLWE7PK/www.castings.plc.uk)
, and from the registered office.
Statement of Directors' Responsibilities
The directors confirm that the condensed consolidated interim financial
statements have been prepared in accordance with IAS 34 and that the interim
management report includes a fair review of the information required by DTR
4.2.7R and DTR 4.2.8R.
By order of the board
S. J. Mant
Group Finance Director
12 November 2025
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR GPGUAGUPAGCG
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Castings
See all newsREG - Castings PLC - Half-year Financial Report
AnnouncementREG - Castings PLC - Notice of Results
AnnouncementREG - Castings PLC - Director/PDMR Shareholding
AnnouncementREG - Castings PLC - Exercise of Options and Director/PDMR Shareholding
AnnouncementREG - Castings PLC - Director Role Changes
Announcement