REG - Castings PLC - Half Yearly Report <Origin Href="QuoteRef">CGS.L</Origin>

CastingsAnnouncement

14/11/2014 10:00

RNS Number : 9915W
Castings PLC
14 November 2014
Castings P.L.C.
Interim Management Report
Sales for the six months ended 30 September 2014 were 63.6m (2013 - 65.9m) with profit before tax of 8.34m (2013 - 9.57m).
It was reported at our Annual General Meeting in August that sales were below our expectations. Market forecasts of an increase in volumes in the third quarter of 2014 did not materialise. Forward schedules suggest a reduction in demand.
With the increasing concern over the strength of the recovery in Europe it is difficult to forecast the outcome for the remainder of the year. However, the directors anticipate that the year end results will be in-line with current market expectations.
An interim dividend of 3.22 pence per share has been declared and will be paid on 2 January 2015 to shareholders who are on the register at 28 November 2014.
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 do not consider that the principal risks and uncertainties have changed since publication of the annual report for the year ended 31 March 2014. A detailed explanation of the risks relevant to the group is on pages 6 and 7 of the annual report.
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:
BRIAN J. COOKE
Chairman
14 November 2014
Castings P.L.C.  
Lichfield Road
Brownhills
West Midlands
WS8 6JZ


Consolidated Statement of Comprehensive Income
For six months ended 30 September 2014 

Unaudited

Unaudited

Audited

Half year to

Half year to

Year to

30 September

30 September

31 March

2014

2013

2014

'000

'000

'000






Revenue
63,596

65,902

137,466
Cost of sales
(47,850)

(49,330)

(101,424)






Gross profit
15,746

16,572

36,042
Distribution costs
(1,062)

(999)

(2,722)
Administrative expenses





Excluding exceptional 
(6,422)

(6,102)

(12,034)
Exceptional 
-

-

363
Total administrative expenses
(6,422)

(6,102)

(11,671)






Profit from operations
8,262

9,471

21,649






Finance income
81

102

184
Profit before income tax
8,343

9,573

21,833






Income tax expense
(1,752)

(2,202)

(4,575)






Profit for the period attributable to the equity holders of the parent company
6,591

7,371

17,258






Other comprehensive income/(expense) for the period:





Items that will not be reclassified to profit and loss:





Net actuarial loss and movement in unrecognised surplus on defined benefit pension schemes
-

-

(3,872)
Tax effect of items that will not be reclassified
-

-

853







-

-

(3,019)
Items that may be reclassified subsequently to profit and loss:





Change in fair value of available for sale financial assets
(39)

17

28
Tax effect of items that may be reclassified
8

(4)

(6)







(31)

13

22
Total other comprehensive (losses)/income for the period (net of tax)
(31)

13

(2,997)
Total comprehensive income for the period attributable to the equity holders of the parent company
6,560

7,384

14,261
Earnings per share attributable to the equity holders of the parent company





Basic and diluted
15.11p

16.89p

39.55p


Consolidated Balance Sheet
30 September 2014 

Unaudited

Unaudited

Audited

30 September

30 September

31 March

2014

2013

2014

'000

'000

'000
ASSETS











Non-current assets





Property, plant and equipment
66,774

63,507

65,195
Financial assets
483

511

522

67,257

64,018

65,717






Current assets





Inventories
14,086

9,932

12,621
Trade and other receivables
33,417

35,090

32,753
Cash and cash equivalents
24,671

25,750

27,780

72,174

70,772

73,154






Total assets
139,431

134,790

138,871






LIABILITIES











Current liabilities





Trade and other payables
20,247

22,008

21,076
Current tax liabilities
1,658

2,226

2,615

21,905

24,234

23,691










Non-current liabilities





Deferred tax liabilities
4,346

5,158

4,271






Total liabilities
26,251

29,392

27,962






Net assets
113,180

105,398

110,909






Equity attributable to equity holders of the parent company





Share capital
4,363

4,363

4,363
Share premium account
874

874

874
Other reserve
13

13

13
Retained earnings
107,930

100,148

105,659






Total equity
113,180

105,398

110,909








Consolidated Cash Flow Statement
For six months ended 30 September 2014

Unaudited

Unaudited

Audited

Half year to

Half year to

Year to

30 September

30 September

31 March

2014

2013

2014

'000

'000

'000
Cash flows from operating activities





Profit before income tax
8,343

9,573

21,833
Adjustments for:





Depreciation 
3,173

2,914

6,046
Loss on sale of property, plant and equipment
-

-

94






Finance income 
(81)

(102)

(184)






Excess of employer pension contributions over income statement charge
-

-

(3,872)
(Increase)/decrease in inventories
(1,465)

710

(1,979)
(Increase)/decrease in receivables
(664)

(1,764)

573
(Decrease)/increase in payables
(829)

2,322

1,390






Cash generated from operating activities
8,477

13,653

23,901






Tax paid
(2,626)

(2,830)

(4,850)
Interest received 
69

90

162






Net cash generated from operating activities
5,920

10,913

19,213






Cash flows from investing activities





Dividends received from listed investments
12

12

22
Purchase of property, plant and equipment
(4,752)

(4,745)

(9,668)
Proceeds from disposal of property, plant and equipment
-

-

9
Transfer from other current interest-bearing deposits
-

5,000

5,000






Net cash (used in)/ inflow from investing activities
(4,740)

267

(4,637)






Cash flow from financing activities





Dividends paid to shareholders
(4,289)

(4,084)

(5,450)
Net cash used in financing activities
(4,289)

(4,084)

(5,450)






Net (decrease)/increase in cash and cash equivalents
(3,109)

7,096

9,126
Cash and cash equivalents at beginning of period
27,780

18,654

18,654






Cash and cash equivalents at end of period
24,671

25,750

27,780






Cash and cash equivalents:





Short-term deposits
22,012

24,599

27,113
Cash available on demand
2,659

1,151

667







24,671

25,750

27,780


Consolidated Statement of Changes in Equity 

Unaudited
Equity attributable to equity holders of the parent

Share capital

Share premium

Other reserve

Retained earnings

Total
equity

'000

'000

'000

'000

'000
At 1 April 2014
4,363

874

13

105,659

110,909










Total comprehensive income for the period ended 30 September 2014
-

-

-

6,560

6,560










Dividends
-

-

-

(4,289)

(4,289)










At 30 September 2014
4,363

874

13

107,930

113,180

Unaudited
Equity attributable to equity holders of the parent

Share capital

Share premium

Other reserve

Retained earnings

Total
equity

'000

'000

'000

'000

'000
At 1 April 2013
4,363

874

13

96,848

102,098










Total comprehensive income for the period ended 30 September 2013
-

-

-

7,384

7,384










Dividends
-

-

-

(4,084)

(4,084)










At 30 September 2013
4,363

874

13

100,148

105,398





















Audited
Equity attributable to equity holders of the parent

Share capital

Share premium

Other reserve

Retained earnings

Total
equity

'000

'000

'000

'000

'000
At 1 April 2013
4,363

874

13

96,848

102,098










Total comprehensive income for the year ended 31 March 2014
-

-

-

14,261

14,261










Dividends 
-

-

-

(5,450)

(5,450)










At 31 March 2014
4,363

874

13

105,569

110,909


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 2014 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 2014 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 31 March 2014 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2014 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 Auditing Practices Board guidance on Review of Interim Financial Information.
2. ACCOUNTING POLICIES 
The annual financial statements of Castings P.L.C. are prepared using the recognition and measurement principles of IFRSs as endorsed by the European Union. The condensed set of financial statements has been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.
 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 three operating companies which are considered to be the operating segments of the group. Castings P.L.C. and William Lee Limited are aggregated into Foundry Operations and CNC Speedwell Limited is the Machining Operation.
The following shows the revenues, results and total assets by reportable segment for the half year to 30 September 2014.

Foundry operations
'000
Machining
'000
Elimination
'000
Total
'000





Revenue from external customers
55,618
7,978
-
63,596
Inter-segmental revenue
9,919
6,402
-
16,321





Segmental result
6,418
1,844
-
8,262





Unallocated income:




Finance income



81





Profit before income tax



8,343










Total assets
123,117
32,517
(16,203)
139,431










Non-current asset additions
3,106
1,646
-
4,752










Depreciation
1,555
1,618
-
3,173
The following shows the revenues, results and total assets by reportable segment for the half year to 30 September 2013.

Foundry operations
'000
Machining
'000
Elimination
'000
Total
'000





Revenue from external customers
57,411
8,491
-
65,902
Inter-segmental revenue
11,304
6,449
-
17,753





Segmental result
7,181
2,290
-
9,471





Unallocated income:




Finance income



102
Profit before income tax



9,573




Total assets
122,459
30,323
(17,992)
134,790










Non-current asset additions
1,583
3,162
-
4,745










Depreciation
1,422
1,492
-
2,914
The following shows the revenues, results and total assets by reportable segment for the year ended 31 March 2014.

Foundry operations
'000
Machining
'000
Elimination
'000
Total
'000





Revenue from external customers
119,893
17,573
-
137,466
Inter-segmental revenue
23,070
13,915
-
36,985





Segmental result
16,225
5,187
-
21,412





Unallocated income:




Exceptional credit for the recovery of Icelandic deposits previously written off



363
Defined benefit pension cost



(126)
Finance income



184
Profit before income tax



21,833










Total assets
121,153
30,529
(12,881)
138,871










Non-current asset additions
3,531
6,137
-
9,668










Depreciation
3,031
3,015
-
6,046
5. DIVIDENDS
Amounts recognised as distributions to shareholders in the period:

Half year

Half year

to 30 September

to 30 September

2014
'000

2013
'000
Final dividend of 9.83p for the year ended 31 March 2014
(2013 - 9.36p) per share
4,289

4,084
The directors have declared an interim dividend in respect of the financial year ending 31 March 2015 of 3.22p per share (2014 - 3.13p), which will be paid on 2 January 2015.


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. There are no share options or other potentially issuable shares; hence the diluted earnings per share is the same calculation.

Half year to

Half year to

Year to

30 September

30 September

3 1 March

2014

2013

2014

'000

'000

'000






Profit after tax
6,591

7,371

17,258






Weighted average number of shares
43,632,068

43,632,068

43,632,068






Earnings per share - basic and diluted
15.11p

16.89p

39.55p
7. INTERIM REPORT
 Copies of this interim management report will be available on the company's website, 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 as adopted by the European Union 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 FCA
Group Finance Director 
14 November 2014

This information is provided by RNS
The company news service from the London Stock Exchange
  END
IR BJBATMBJBBTI