REG - Castings PLC - Trading Update and Appointment of Joint Broker

CastingsAnnouncement

04/05/2022 07:00

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RNS Number : 1841K  Castings PLC  04 May 2022

Castings plc

Trading Update, Notice of Results and Appointment of Joint Broker

 

Castings PLC announces a trading update in respect of the year ending 31 March
2022, with the result anticipated to be slightly ahead of market expectations.

 

We reported in November 2021 that demand from the commercial vehicle sector
(70% of group revenue) was being impacted by supply chain disruption for the
OEMs, particularly in respect of semiconductors. This situation continued
during the remainder of the financial year and our customers were unable to
build sufficient heavy trucks to satisfy their, widely reported, strong order
books.

 

Whilst we have seen an increase in the total weight of castings despatched in
the year and associated revenues, the unpredictable and sudden changes to the
customer schedules has caused inefficiencies which has put pressure on
margins. Management have taken actions to partially mitigate this margin
pressure, such that the result for the year is anticipated to be slightly
ahead of market expectations.

 

At this early stage of the new financial year, the forward demand schedules
continue to reflect the higher build rates that the heavy truck OEMs require
to satisfy their order books. However, the risk of reduced conversion to
actual sales in the short-term remains in place as the supply chain
restrictions continue for our customers.

 

We remain well placed to satisfy the increased demand that is coming through
and will see the benefit of increasing volumes of new product on the latest
generations of heavy truck platforms.

 

Notice of Results

 

The group intends to announce its results for the year ending 31 March 2022 on
15 June 2022.

 

Appointment of Joint Broker

 

Castings PLC is pleased to announce the appointment of Zeus Capital Limited as
its joint corporate broker with immediate effect.

 

Zeus Capital Limited will work alongside the company's existing broker
Canaccord Genuity Limited.

 

S J Mant, Director and Company Secretary

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

4 May 2022

 

 Castings plc                                +44 (0) 15 433 74341

 S J Mant, Director and Company Secretary

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

 Adam James

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

 Dominic King (Corporate Broking)

 David Foreman (Investment Banking)

 

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