REG - Castings PLC - Trading Statement

CastingsAnnouncement

18/02/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250218:nRSR4182Xa&default-theme=true

RNS Number : 4182X  Castings PLC  18 February 2025

The information contained within this announcement is deemed by the company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018.  Upon the publication of this
announcement via the Regulatory Information Service, this inside information
is now considered to be in the public domain.

 

 

Castings PLC

Trading update

 

Castings PLC ("Castings" or "the company"), the leading iron casting and
machining group primarily focused on the European heavy truck market,
announces a trading update in respect of the year ending 31 March 2025.

 

We previously reported that the underlying demand for heavy trucks
(approximately 75% of group revenue) was down 20% on the previous year. During
the third quarter we saw demand drop further, although early indications are
that volumes are recovering somewhat during the final quarter of the year. As
a result, the underlying profitability of the established foundry and
machining businesses is expected to be below market expectations.

 

In addition, the result has been impacted by two items in the second half of
the financial year.  The first is, as a direct impact of lower volumes, an
increase in power costs resulting from enforced penalties payable in respect
of forward purchased electricity volumes that were not required. The second
relates to the start-up costs and trading losses associated with the new
business in Scunthorpe.

 

The increased electricity costs are not expected to impact profitability
during the year ending 31 March 2026 and the Scunthorpe business is
anticipated to be profitable in the remaining months of the current year and
into the next financial year.

 

Taking all the above into account, it is the board's expectation that the
company's result will be substantially below market expectations in the
current year.

 

Our major customers have recently reported increasing sales orders which are
expected to positively impact Castings sales volumes early in the next
financial year.

 

The balance sheet remains strong, notwithstanding significant capital
investment and dividend distributions in the year.

 

 

Castings PLC
                                      +44 (0) 1543 374341

S J Mant, Director and Company Secretary

 

Canaccord Genuity Limited (Joint
Broker)                             +44 (0) 20
7523 8000

Adam James

George Grainger

 

Zeus Capital Limited (Joint
Broker)
+44 (0) 20 3829 5000

Dominic King (Corporate Broking)

David Foreman (Investment Banking)

 

 

Notes for Editors

Castings PLC is a leading iron casting and machining group based in the UK,
supplying both the domestic and export markets. It has gross foundry capacity
of 70,000 tonnes p.a. and is highly invested with the latest automation
technologies. This enables high mix production of low volume parts on a just
in time basis to provide a competitive edge. Castings has long-term
relationships with the major OEMs in its core European heavy truck market and
their platforms typically last over 10 years in production. In addition to the
commercial vehicle sector, Castings PLC also supplies the wind power,
agriculture, rail and material handling markets. www.castings.plc.uk
(http://www.castings.plc.uk)

 

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  TSTEAXAXFFPSEFA