Interim Results

Castings PLC 29 November 2007 INTERIM FINANCIAL REPORT 2007 AND TRADING STATEMENT Chairman's Statement Profit before tax for the six months ended 30th September 2007 was Â£6.27m compared with Â£4.93m in the period ended 30th September 2006. It is pleasing to report turnover has increased from Â£38.9m to Â£45.8m. This is partly due to recovery of raw material and energy price increases, but the underlying turnover has increased by approximately 13.9%. All our major customers are enjoying high demand for their products and hence we are also enjoying high demand for our castings and machined products. It was decided in August 2007 to build a new moulding line at William Lee which will increase overall foundry capacity by 20% when in full production. Development work is progressing well and it is anticipated the foundry will be available for production early in 2009. This will depend on cooperation with planning departments and the supply of electricity to the site, but it is hoped these matters will be resolved without delaying the project and help to create over 80 new manufacturing jobs in the North Derbyshire area. The anticipated cost of this investment is Â£11m. All three companies, Castings Brownhills, William Lee and CNC Speedwell, have enjoyed good trading over the last six months and there are signs that this high demand will continue into the foreseeable future. The group has set out the principal risks which could impact the performance of the group in its Annual Report and Accounts 2007. In the view of the Board there has been no material change in the risks. An interim dividend of 2.71 pence per share has been declared and will be paid on 11th January 2008 to shareholders who are on the register at 14th December 2007. BRIAN J. COOKE Chairman 29th November 2007 Castings p.l.c. Lichfield Road Brownhills West Midlands WS8 6JZ Consolidated Income Statement For six months ended 30th September 2007 (Unaudited) Half year to Half year to Year to 30th September 30th September 31st March 2007 2006 2007 Â£'000 Â£'000 Â£'000 ----------- ---------- --------- Revenue 45,760 38,938 86,230 Cost of sales (33,572) (28,630) (63,701) ----------- ---------- --------- Gross profit 12,188 10,308 22,529 Distribution costs (628) (605) (1,293) Administrative expenses (5,985) (5,367) (9,676) ----------- ---------- --------- Profit from operations 5,575 4,336 11,560 Finance income 691 598 1,497 ----------- ---------- --------- Profit before income tax 6,266 4,934 13,057 Income tax expense (1,880) (1,480) (3,647) ----------- ---------- --------- Profit for the period attributable to the equity holders of the parent company 4,386 3,454 9,410 ----------- ---------- --------- Earnings per share Basic and diluted 10.05p 7.92p 21.57p ----------- ---------- --------- Consolidated Balance Sheet 30th September 2007 (Unaudited) 30thSeptember 30thSeptember 31stMarch 2007 2006 2007 Â£'000 Â£'000 Â£'000 Assets Non-current assets Property, plant and equipment 34,999 35,047 35,495 Financial assets 824 1,025 823 Deferred tax asset - 574 - ---------- ---------- ---------- 35,823 36,646 36,318 ---------- ---------- ---------- Current assets Inventories 5,080 3,818 6,318 Trade and other receivables 20,699 19,493 21,784 Cash and cash equivalents 28,314 26,155 25,452 ---------- ---------- ---------- 54,093 49,466 53,554 ---------- ---------- ---------- Total assets 89,916 86,112 89,872 ---------- ---------- ---------- Liabilities Current liabilities Trade and other payables 14,007 13,261 16,212 Current tax liabilities 1,710 962 883 ---------- ---------- ---------- 15,717 14,223 17,095 ---------- ---------- ---------- Non-current liabilities Retirement benefit obligations - 1,913 - Deferred tax liabilities 2,204 2,325 2,141 ---------- ---------- ---------- 2,204 4,238 2,141 ---------- ---------- ---------- Total liabilities 17,921 18,461 19,236 ---------- ---------- ---------- Net Assets 71,995 67,651 70,636 ---------- ---------- ---------- Shareholders' equity Share capital 4,363 4,363 4,363 Share premium account 874 874 874 Other reserves 13 13 13 Retained earnings 66,745 62,401 65,386 ---------- ---------- ---------- Total equity 71,995 67,651 70,636 ---------- ---------- ---------- Consolidated Cash Flow Statement For six months ended 30th September 2007 (Unaudited) Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 Â£'000 Â£'000 Â£'000 Cash flows from operating activities Cash generated from operations 8,464 7,285 12,582 Finance income 691 598 1,497 Tax paid (990) (1,792) (2,858) ---------- ---------- --------- Net cash generated from operating activities 8,165 6,091 11,221 Cash flows from investing activities Purchase of property, plant and equipment (2,275) (4,818) (9,637) Purchase of financial assets - (47) (47) Proceeds from disposal of property, plant and equipment - - 45 Proceeds from disposal of financial assets - 153 220 ---------- ---------- --------- Net cash used in investing activities (2,275) (4,712) (9,419) Cash flow from financing activities Dividends paid to shareholders (3,028) (2,910) (4,036) ---------- ---------- --------- Net cash used in financing activities (3,028) (2,910) (4,036) Net increase/(decrease) in cash and cash equivalents 2,862 (1,531) (2,234) Cash and cash equivalents at beginning of period 25,452 27,686 27,686 ---------- ---------- --------- Cash and cash equivalents at end of period 28,314 26,155 25,452 ---------- ---------- --------- Consolidated Statement of Recognised Income and Expense For six months ended 30th September 2007 (Unaudited) Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 Â£'000 Â£'000 Â£'000 Profit for period 4,386 3,454 9,410 Change in fair value of available for sale financial assets 1 (8) (143) Actuarial (losses)/ gains on defined pension schemes - - (2,500) Tax effect of gains and losses recognised directly in equity - (10) 780 ----------- ---------- --------- Total recognised income for period 4,387 3,436 7,547 ----------- ---------- --------- Supplementary Statement Reconciliation of profit before income tax to net cash inflow from operating activities For six months ended 30th September 2007 (Unaudited) Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 Â£'000 Â£'000 Â£'000 Profit before tax 6,266 4,934 13,057 Depreciation 2,771 2,337 6,663 Finance income (691) (598) (1,497) Excess of employer pension contributions over income statement charge - - (4,413) (Increase)/decrease in inventories 1,238 1,458 (1,042) (Increase)/decrease in receivables 1,085 956 (1,335) Increase/(decrease) in payables (2,205) (1,802) 1,149 ---------- ---------- --------- Net cash inflow from operating activities 8,464 7,285 12,582 ---------- ---------- --------- Notes 1. BASIS OF PREPARATION Financial information presented here is unaudited. Comparatives for the full year ended 31st March 2007 are not the Group's full statutory accounts for that year. A copy of those accounts has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 237 (2)-(3) of the Companies Act 1985. The condensed consolidated half-yearly financial information for the half-year ended 30th September 2007 has been prepared in accordance with IAS 34, 'Interim financial reporting' as adopted by the European Union. The half-yearly condensed consolidated financial report does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31st March 2007. 2. ACCOUNTING POLICIES The interim financial statements have 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 2007. 3. SEGMENT INFORMATION The geographical analysis of revenues by destination for the period is as follows: Half year Half year Year to 30th to 30th to 31st September 2007 September March Â£'000 2006 2007 Â£'000 Â£'000 United Kingdom 16,559 13,471 30,321 Sweden 8,691 7,467 17,145 Rest of Europe 19,683 17,173 37,377 North and South America 827 827 1,375 Other - - 12 -------- --------- -------- 45,760 38,938 86,230 -------- --------- -------- All turnover arises in the United Kingdom for the Group's continuing principal activity, which the directors believe to be the only class of the business carried out by the Group. The directors do not consider there to be any significant seasonality or cyclicality to the results of the Group. 4. DIVIDENDS Half year Half year to 30th to 30th September September ------------------------------- --------- --------- Amounts recognised as distributions to shareholders in the period: 2007 2006 Â£'000 Â£'000 ------------------------------- --------- --------- Final dividend of 6.94p for the year ended 31st March 2007 (2006: 6.67p) per share 3,028 2,910 ------------------------------- --------- --------- The directors have declared an interim dividend in respect of the financial year ending 31st March 2008 of 2.71 pence per share (2007: 2.58p), which will be paid on 11th January 2008. 5. 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 or other potentially issuable shares, hence the diluted earnings per share is the same calculation. --------------------------------------------- Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2007 2006 2007 Â£'000 Â£'000 Â£'000 Profit after tax 4,386 3,454 9,410 ---------- --------- --------- Weighted average number of shares 43,632,068 43,632,068 43,632,068 ---------- --------- --------- Earnings per share - basic and diluted 10.05p 7.92p 21.57p ---------- --------- --------- Statement of Directors' Responsibilities The directors' confirm that the condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union and that the Chairman's Statement herein includes a fair view of the information required by DTR 4.2.7 and DTR 4.2.8. The directors of Castings p.l.c. are listed on the following page. By order of the Board J.C.Roby FCA Finance Director 29th November 2007 This information is provided by RNS The company news service from the London Stock Exchange

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