Interim Results

Castings PLC 25 November 2004 CASTINGS PLC RESULTS FOR HALF YEAR ENDED 30 SEPTEMBER 2004 SUMMARISED GROUP PROFIT AND LOSS ACCOUNT SIX MONTHS SIX MONTHS ENDED ENDED YEAR ENDED 30 SEPT 2004 30 SEPT 2003 31 MARCH 2004 Â£000 Â£000 Â£000 NET TURNOVER 31,508 29,072 61,176 ______ ______ ______ OPERATING PROFIT 3,193 3,493 7,676 EXCEPTIONAL ITEM-SALE OF 134 - - PROPERTY OTHER INCOME 478 540 1,017 _____ _____ ______ PROFIT BEFORE TAXATION 3,805 4,033 8,693 TAXATION ON PROFITS 1,143 1,210 2,614 _____ _____ _____ PROFIT ATTRIBUTABLE TO SHAREHOLDERS 2,662 2,823 6,079 DIVIDENDS 1,065 1,038 3,678 _____ _____ _____ RETAINED PROFIT 1,597 1,785 2,401 _____ _____ _____ INTERIM DIVIDEND 2.44PENCE 2.38PENCE 8.43PENCE DECLARED -PENCE PER SHARE EARNINGS PER BASIC & 6.11PENCE 6.47PENCE 13.93PENCE SHARE DILUTED -ADJUSTED 5.89PENCE - - FOR EXCEPTIONAL ITEM SUMMARISED GROUP BALANCE SHEET 30 SEPT 2004 30 SEPT 2003 31 MARCH 2004 Â£000 Â£000 Â£000 TANGIBLE ASSETS 32,303 31,295 31,043 INVESTMENTS 602 704 704 CURRENT ASSETS STOCKS 4,953 3,660 4,527 DEBTORS 13,149 11,960 13,697 CASH AT BANK 23,777 22,636 25,393 ______ ______ ______ 41,879 38,256 43,617 CREDITORS - UNDER ONE (12,032) (10,417) (14,855) YEAR ______ ______ ______ NET CURRENT ASSETS 29,847 27,839 28,762 PROVISIONS FOR LIABILITIES/CHARGES (2,020) (1,319) (1,374) 60,732 58,519 59,135 ______ ______ ______ CAPITAL AND RESERVES CALLED UP SHARE CAPITAL 4,363 4,363 4,363 SHARE PREMIUM 874 874 874 RESERVES 55,495 53,282 53,898 ______ ______ ______ 60,732 58,519 59,135 ______ ______ ______ SUMMARISED CASH FLOW 30 SEPT 2004 30 SEPT 2003 31 MARCH 2004 STATEMENT Â£000 Â£000 Â£000 NET CASH INFLOW FROM OPERATING 4,927 1,723 8,213 ACTIVITIES RETURNS ON INVESTMENTS AND SERVICING OF FINANCE: INTEREST RECEIVED 478 540 1,017 TAXATION (1,057) (1,363) (2,311) CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT: PURCHASE OF TANGIBLE FIXED (4,176) (1,233) (3,481) ASSETS SALE OF INVESTMENTS 102 - - SALE OF TANGIBLE FIXED 750 - 33 ASSETS EQUITY DIVIDENDS PAID (2,640) (2,561) (3,600) CASH OUTFLOW BEFORE USE ______ ______ ______ OF LIQUID RESOURCES AND (1,616) (2,894) (129) FINANCING MANAGEMENT OF LIQUID RESOURCES: DECREASE IN SHORT-TERM 767 2,897 942 DEPOSITS FINANCING: CHANGE IN ORDINARY - - - SHARE CAPITAL _____ _____ _____ INCREASE/(DECREASE)IN (849) 3 813 CASH _____ _____ _____ RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS INCREASE/(DECREASE) IN CASH IN (849) 3 813 THE PERIOD DECREASE IN LIQUID (767) (2,897) (942) RESOURCES SALE OF INVESTMENTS (102) - - _____ _____ _____ CHANGE IN NET FUNDS FROM CASH (1,718) (2,894) (129) FLOWS OPENING NET FUNDS 26,097 26,226 26,226 ______ ______ ______ CLOSING NET FUNDS 24,379 23,332 26,097 ______ ______ ______ 1) THE HALF YEAR RESULTS ARE UNAUDITED.THE ACCOUNTS FOR THE YEAR TO 31 MARCH 2004 SET OUT ABOVE ARE ABRIDGED.FULL ACCOUNTS FOR THE YEAR,ON WHICH THE AUDITORS OF THE GROUP HAVE GIVEN AN UNQUALIFIED REPORT,HAVE BEEN DELIVERED TO THE REGISTRAR OF COMPANIES. 2) THE INTERIM INFORMATION HAS BEEN PREPARED ON THE BASIS OF THE ACCOUNTING POLICIES SET OUT IN THE GROUP'S 2004 ANNUAL REPORT AND ACCOUNTS. 3) EARNINGS PER SHARE IS CALCULATED ON THE PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION OF Â£2,662,000 (2003: Â£2,823,000) AND ON THE WEIGHTED AVERAGE NUMBER OF SHARES IN ISSUE DURING THE PERIOD OF 43,632,068(2003: 43,632,068). 4) THE LAST DAY ON WHICH TRANSFERS CAN BE LODGED WITH THE REGISTRAR FOR TRANSFEREES TO RECEIVE THE INTERIM DIVIDEND IS 10 DECEMBER 2004,AND THE INTERIM DIVIDEND WILL BE POSTED ON 7 JANUARY 2005. COPIES OF THE INTERIM REPORT WILL BE AVAILABLE AT THE REGISTERED OFFICE OF THE COMPANY AND WILL BE SENT TO SHAREHOLDERS ON 1 DECEMBER 2004. CHAIRMAN'S STATEMENT PROFIT BEFORE TAX AND AFTER EXCEPTIONAL ITEM FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004 WAS Â£3,805,000 COMPARED WITH Â£ 4,033,000 IN THE PERIOD TO 30 SEPTEMBER 2003. REGRETTABLY THE CONTINUAL INCREASE IN RAW MATERIAL PRICES AND ENERGY PRICES HAS HAD AN ADVERSE EFFECT ON OUR PROFITS. STEEL SCRAP AND PIG IRON PRICES HAVE MORE THAN DOUBLED OVER THE LAST EIGHTEEN MONTHS AND INCREASED BY OVER 40% SINCE APRIL 2004. THESE INCREASES COUPLED WITH A 40% INCREASE IN ELECTRICITY PRICES FROM OCTOBER WILL CONTINUE TO HAVE AN EFFECT ON OUR PROFITS BECAUSE OF THE DELAY IN RECOVERING THESE UNPARALLELED COST INCREASES IMPOSED ON THE COMPANY. WE ALSO HAVE A SMALL NUMBER OF FIXED PRICE CONTRACTS ON WHICH WE WILL NOT RECOVER THESE INCREASES UNTIL NEW CONTRACTS ARE ESTABLISHED. WE ARE FORTUNATE IN ENJOYING A FULL ORDER BOOK AND HIGH SCHEDULE DEMANDS, AND SO IT IS DISAPPOINTING FOR ALL OF US THAT IN THE CURRENT CIRCUMSTANCES WE CANNOT BENEFIT FROM OUR RECENT INVESTMENTS WITH IMPROVED PROFITS. I AM PLEASED TO REPORT THAT CNC SPEEDWELL, OUR MACHINING OPERATION, IS LESS AFFECTED BY THESE COST INCREASES AND IS ENJOYING CONTINUED SUCCESS IN GROWING ITS BUSINESS AND PROFITS. THE MEDIA NOW RECOGNISES THAT STEEL, OTHER RAW MATERIALS AND SERVICES HAVE RISEN IN PRICE TO SUCH AN EXTENT THAT THE EFFECT ON WORLD ECONOMIES IS UNKNOWN. NEITHER OURSELVES NOR ANYONE ELSE HAVE EXPERIENCED SUCH RAW MATERIAL INFLATION IN MODERN TIMES. THANKFULLY YOUR COMPANY IS FINANCIALLY SECURE TO BE ABLE TO OPERATE THROUGH THESE DIFFICULT TIMES. IT IS IMPOSSIBLE TO FORECAST PROFITS UP OR DOWN DUE TO STEEL SCRAP PRICE MOVEMENTS WHICH ARE IMPOSED ON US ON A MONTHLY BASIS, WITH A SINGLE MONTHLY MOVEMENT THAT CAN AFFECT PROFITS BY MORE THAN 10%. WE SHALL CONTINUE IN OUR ENDEAVOURS TO RECOVER THESE INCREASES. AN INTERIM DIVIDEND OF 2.44 PENCE PER SHARE HAS BEEN DECLARED AND WILL BE SENT TO SHAREHOLDERS ON 7 JANUARY 2005. B J COOKE. CHAIRMAN. CASTINGS PLC. LICHFIELD ROAD. BROWNHILLS. WEST MIDLANDS. WS8 6JZ This information is provided by RNS The company news service from the London Stock Exchange END IR MGMZMVDNGDZM

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