REG - Castings PLC - Trading Statement

CastingsAnnouncement

07/10/2022 07:00

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RNS Number : 0828C  Castings PLC  07 October 2022

Castings PLC

Trading Update and Notice of Results

 

Castings PLC ("Castings" or "the Company") announces a trading update in
respect of the six months ended 30 September 2022.

 

The underlying demand for heavy trucks (70% of group revenue) remains strong
and we have seen a more consistent conversion of forward schedules in the
period. This strength continues to be reflected in the schedules that our OEM
customers are providing.

 

Input price changes continue to be passed onto our customers through both
established escalators and additional price increases. The most significant
increase came into effect on 1 October 2022 following the end of our fixed
price electricity contract. The higher unit cost for power is being surcharged
to our customers immediately and will therefore increase revenue in the second
half of the year. This should not adversely affect group profit as it is a
pass-through of a direct cost increase.

 

The commissioning of an automated pouring process, on one of our largest
production lines, was completed during the summer. Following the initial
bedding-in period, we are now seeing increased output and production
efficiencies on this plant with further productivity expected to be realised
in the coming months.

 

The balance sheet remains strong with pre-dividend cash generation during the
six-month period and management remain confident that the Company will
continue to trade in line with market expectations.

 

Notice of Results

 

The Company intends to announce its half year results on 16 November 2022.

 

 

S J Mant

Director and Company Secretary

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

7 October 2022

 

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