Interim Results

Castings PLC 30 November 2006 Castings p.l.c. INTERIM FINANCIAL REPORT 2006 Chairman's Statement Profit before tax for the six months ended 30th September 2006 was £4,934,000 compared with £5,422,000 in the period ended 30th September 2005. It is disappointing to declare a reduced profit for the half year, despite increased turnover and production running at a high level. The reduction has been caused by numerous material and commodity price increases outside our control, coupled with the moving of the machine shop from Fradley Park to Brownhills. As indicated in my statement last year we have been subjected to significant increases in electricity prices from 1st October 2006. We are negotiating with our customers for compensation and the timing of resolutions will have a further detrimental effect on our full year profits. Once negotiations are complete, normal and reasonable profitability should return on future trading, but the Board believes that the full year result is unlikely to reach the levels of 2005/6. Despite these problems, it appears we will enjoy a full order book for the foreseeable future and our machining business is expecting continued growth in the new year. An interim dividend of 2.58 pence per share has been declared and will be paid on 12th January 2007 to shareholders who are on the register at 15th December 2006. Brian J Cooke, Chairman Consolidated Income Statement Half year to Half year to Year to Unaudited 30thSeptember 30thSeptember 31stMarch 2006 2005 2006 £'000 £'000 £'000 Revenue 38,938 36,379 76,696 -------- -------- -------- Operating profit 4,336 4,877 11,561 Finance income 598 545 1,140 -------- -------- -------- Profit before income tax 4,934 5,422 12,701 Income tax expense 1,480 1,604 3,946 ------- ------- ------- Profit for the period 3,454 3,818 8,755 ------- ------- ------- Earnings per share Basic and diluted 7.92p 8.75p 20.07p ------- ------- -------- Consolidated Balance Sheet Unaudited 30thSeptember 30thSeptember 31stMarch 2006 2005 2006 £'000 £'000 £'000 Assets Non-current assests Property, plant and equipment 35,047 33,419 32,566 Financial assets 1,025 1,027 1,139 Deferred tax asset 574 1,949 574 -------- -------- -------- 36,646 36,395 34,279 -------- -------- -------- Current assets Inventories 3,818 4,900 5,276 Trade and other receivables 19,493 17,227 20,449 Cash and cash equivalents 26,155 25,040 27,686 -------- -------- -------- 49,466 47,167 53,411 -------- -------- -------- Total assets 86,112 83,562 87,690 -------- -------- -------- Liabilities Current liabilities Trade and other payables 13,261 11,838 15,063 Current tax liabilities 962 1,191 1,808 -------- -------- -------- 14,223 13,029 16,871 -------- -------- -------- Non-current liabilities Retirement benefit obligations 1,913 6,498 1,913 Deferred tax liabilities 2,325 2,396 1,781 ------- ------- ------- 4,238 8,894 3,694 ------- ------- ------- Total liabilities 18,461 21,923 20,565 -------- -------- -------- Net Assets 67,651 61,639 67,125 -------- -------- -------- Shareholders' equity Share capital 4,363 4,363 4,363 Share premium account 874 874 874 Other reserves 13 13 13 Retained earnings 62,401 56,389 61,875 -------- -------- -------- Total equity 67,651 61,639 67,125 -------- -------- -------- Consolidated Cash Flow Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember Unaudited 2006 2005 2006 £'000 £'000 £'000 Cash flows from operating activities Cash generated from operations 7,285 6,138 12,678 Finance income 598 545 1,140 Tax paid (1,792) (1,387) (3,060) --------- --------- --------- Net cash generated from operating activities 6,091 5,296 10,758 Cash flows from investing activities Purchase of property, plant and equipment (4,818) (2,559) (4,301) Purchase of financial assets (47) - - Proceeds from disposal of property, plant and equipment - - 9 Proceeds from disposal of financial assets 153 - 21 ______ ______ ______ Net cash used in investing activities (4,712) (2,559) (4,271) Cash flow from financing activities Dividends paid to shareholders (2,910) (2,771) (3,875) --------- --------- --------- Net cash used in financing activities (2,910) (2,771) (3,875) Net increase/(decrease) in cash and cash equivalents (1,531) (34) 2,612 Cash and cash equivalents at beginning of period 27,686 25,074 25,074 -------- -------- -------- Cash and cash equivalents at end of period 26,155 25,040 27,686 -------- -------- -------- Consolidated Statement of Recognised Income and Expense Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember Unaudited 2006 2005 2006 £'000 £'000 £'000 Profit for period 3,454 3,818 8,755 Change in fair value of available for sale financial assets (8) 43 176 Actuarial (losses)/ gains on defined pension schemes - - 1,987 Tax effect of gains and losses recognised directly in equity (10) (13) (649) ------ ------ ------- Total recognised income for period 3,436 3,848 10,269 ------- ------- -------- Supplementary Statement Reconciliation of profit from operations to net cash inflow from operating activities Half year Half year Year to Unaudited to to 31stMarch 30thSeptember 30thSeptember 2006 2005 2006 £'000 £'000 £'000 Profit before tax 4,934 5,422 12,701 Depreciation 2,337 2,303 4,889 Finance income (598) (545) (1,140) Excess of employer pension contributions over income statement charge - - (2,357) (Increase)/decrease in inventories 1,458 559 183 (Increase)/decrease in receivables 956 (446) (3,668) Increase/(decrease) in payables (1,802) (1,155) 2,070 --------- --------- ------- Net cash inflow from operating activities 7,285 6,138 12,678 ------- ------- -------- Notes 1. BASIS OF PREPARATION Financial information presented here is unaudited. Comparatives for the full year ended 31st March 2006 are not the Group's full statutory accounts for that year. A copy of those accounts have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under Section 237(2)-(3) of the Companies Act 1985. 2. ACCOUNTING POLICIES The interim consolidated financial statements do not include all information and disclosures required in the annual financial statements. They have, however, been prepared using the same accounting policies as used in the preparation of the Group's annual financial statements for the year ended 31st March 2006. 3. DIVIDENDS Half year Half year to 30th to 30th September September --------- --------- Amounts recognised as distributions to shareholders in the period: 2006 2005 £'000 £'000 --------- --------- Final dividend of 6.67p for the year ended 31st March 2006 (2005: 6.35p) per share 2,910 2,771 ------------------------------- --------- --------- The directors have declared an interim dividend in respect of the financial year ending 31st March 2007 of 2.58 pence per share (2006: 2.53p),which will be paid on 12th January 2007. 4. 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, hence the diluted earnings per share is the same calculation. --------------------------------------------- Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2006 2005 2006 £'000 £'000 £'000 Profit after tax 3,454 3,818 8,755 ---------- --------- --------- Weighted average number of shares 43,632,068 43,632,068 43,632,068 ---------- --------- --------- Earnings per share - basic and diluted 7.92p 8.75p 20.07p ---------- --------- --------- This information is provided by RNS The company news service from the London Stock Exchange

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