Trading Update and Appointment of Joint Broker

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 S J Mant, Director and Company Secretary	[phone]
Canaccord Genuity Limited (Joint Broker) Adam James	[phone]
Zeus Capital Limited (Joint Broker) Dominic King (Corporate Broking)   David Foreman (Investment Banking)	[phone]

 

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