Trading Statement

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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