REG - Castings PLC - Trading Statement and Notice of Results

CastingsAnnouncement

28/04/2023 07:00

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RNS Number : 7281X  Castings PLC  28 April 2023

Castings PLC

Trading Update and Notice of Results

 

Castings PLC announces a trading update in respect of the year ended 31 March
2023, with the result anticipated to be ahead of market expectations.

 

In November 2022 we reported strong demand from the commercial vehicle sector
(70% of group revenue), reflecting the high build rates that the heavy truck
OEMs require to satisfy their order books. This situation continued during the
remainder of the financial year with customers increasing schedules through
that period.

 

We have seen an increase in the total weight of castings despatched during the
year. However, significant production rebalancing has been necessary to
accommodate the higher volumes, which have been skewed towards certain
production lines. This has caused some production inefficiencies, particularly
in the second half of the year, but these are now largely behind us.

 

Input price changes in respect of raw materials and energy have been recovered
from our customers through established escalators. The most significant
increase related to electricity following the end of a fixed price contract on
30 September 2022; the additional cost for power was surcharged to our
customers and resulted in an increased revenue in the second half of the year.
This did not adversely affect group profit as it is a pass-through of a direct
cost increase. Further price increases are being negotiated in respect of
other cost rises.

 

The balance sheet remains strong with neutral cash flow following an increase
in working capital and the payment of the supplementary dividend.

 

At this early stage of the new financial year, the forward demand schedules
continue to reflect the strong order books across our customer base.

 

Notice of Results

 

The group intends to announce its results for the year ending 31 March 2023 on
14 June 2023.

 

This announcement contains inside information.

 

S J Mant, Director and Company Secretary

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

28 April 2023

 

 

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