Interim Results

Castings PLC 24 November 2005 Castings p.l.c. INTERIM FINANCIAL REPORT 2005 Chairman's Statement Profit before tax for the six months ended 30th September 2005 was Â£5,422,000 compared with Â£3,805,000 in the period to 30th September 2004. We have enjoyed a six month period of increased sales, partly from the recovery of raw material costs, and also due to increased volumes and additional added value. All three companies have increased sales over the period and with fixed priced contracts out of the way, William Lee in particular has returned much improved profits for the half year. Raw material prices have marginally reduced from a peak in November 2004 and it is hoped they now reduce further in the next few months to more reasonable levels. It does appear that China has a reduced demand for steel, which should reflect in lower European prices. We are pleased to report that building work has now started for an extension to the machine shop in Brownhills and should be completed by May 2006. A satisfactory year should materialise despite early signs that demand is easing in certain areas, perhaps due to the effects of high energy prices coupled with high raw material prices. An interim dividend of 2.53 pence per share has been declared and will be paid on the 6th January 2006 to shareholders who are on the register at 9th December 2005. Brian J Cooke, Chairman Consolidated Income Statement Half year to Half year to Year to Unaudited 30thSeptember 30thSeptember 31stMarch 2005 2004 2005 Â£'000 Â£'000 Â£'000 Total revenue 36,379 31,508 69,037 -------- -------- -------- Operating profit 4,877 3,327 8,566 Finance income 545 478 1,066 -------- -------- -------- Profit before income tax 5,422 3,805 9,632 Income tax expense 1,604 1,143 2,840 -------- -------- -------- Profit for the period 3,818 2,662 6,792 -------- -------- -------- Earnings per share Basic and diluted 8.75p 6.11p 15.57p ------- ------- -------- All operations are continuing Consolidated Balance Sheet Half year to Half year to Year to Unaudited 30thSeptember 30thSeptember 31stMarch 2005 2004 2005 Â£'000 Â£'000 Â£'000 Assets Non-current assests Property, plant and equipment 33,419 32,303 33,163 Investments 1,027 954 984 Deferred tax asset 1,949 1,975 1,949 ------- ------- ------- 36,395 35,232 36,096 -------- -------- -------- Current assets Inventories 4,900 4,953 5,459 Trade and other receivables 17,227 13,149 16,781 Cash and cash equivalents 25,040 23,777 25,074 -------- -------- -------- 47,167 41,879 47,314 -------- -------- -------- Total assets 83,562 77,111 83,410 -------- -------- -------- Liabilities Current liabilities Trade and other payables 11,838 10,371 12,993 Current tax liabilities 1,191 596 1,332 -------- -------- -------- 13,029 10,967 14,325 -------- -------- -------- Non-current liabilities Retirement Benefit Obligations 6,498 6,586 6,498 Deferred tax liabilities 2,396 2,125 2,025 -------- -------- -------- 8,894 8,711 8,523 -------- -------- -------- Total liabilities 21,923 19,678 22,848 -------- -------- -------- Net Assets 61,639 57,433 60,562 -------- -------- -------- Shareholders' equity Share Capital 4,363 4,363 4,363 Share premium account 874 874 874 Other reserves 13 13 13 Retained earnings 56,389 52,183 55,312 -------- -------- -------- Total equity 61,639 57,433 60,562 -------- -------- -------- Consolidated Cash Flow Half year to Half year to Year to 30thSeptember 30thSeptember 31stMarch Unaudited 2005 2004 2005 Â£'000 Â£'000 Â£'000 Cash flows from operating activities Cash generated from operations 6,138 4,929 11,100 Interest received 545 478 1,066 Tax paid (1,387) (1,058) (2,120) --------- --------- --------- Net cash generated from operating activities 5,296 4,349 10,046 Cash flows from investing activities Purchase of property, plant and equipment (2,559) (4,176) (7,496) Proceeds from disposal of property, plant and equipment - 750 761 Proceeds from disposal of investments - 101 74 ______ ______ ______ Net Cash used in investing activities (2,559) (3,325) (6,661) Cash flow from financing activities Dividends paid to shareholders (2,771) (2,640) (3,704) -------- --------- --------- Net cash used in financing activities (2,771) (2,640) (3,704) Net decrease in cash and cash equivalents (34) (1,616) (319) Cash and cash equivalents at beginning of period 25,074 25,393 25,393 -------- -------- -------- Cash and cash equivalents at end of period 25,040 23,777 25,074 -------- -------- -------- Consolidated Statement of Recognised Income and Expense Half year to Half year to Year to 30thSeptember 30thSeptember 31stMarch Unaudited 2005 2004 2005 Â£'000 Â£'000 Â£'000 Profit for period 3,818 2,662 6,792 Revaluation of investments 43 99 101 Actuarial (losses)/ gains on defined pension schemes - - 88 Tax on items taken directly to reserves (13) (29) (56) ------ ------ ------ Total recognised income for period 3,848 2,732 6,925 ------- ------- ------- Supplementary Statement Reconciliation of operating profit to net cash inflow from operating activities Half year to Half year to Year to Unaudited 30thSeptember 30thSeptember 31stMarch 2005 2004 2005 Â£'000 Â£'000 Â£'000 Operating profit 4,877 3,327 8,566 Depreciation 2,303 2,166 4,617 (Increase)/decrease in inventories 559 (434) (932) (Increase)/decrease in receivables (446) 555 (3,084) Increase/(decrease) in payables (1,155) (685) 1,933 --------- ------- ------- Net cash inflow from operating activities 6,138 4,929 11,100 ------- ------- -------- Notes to the interim financial report 1. GENERAL INFORMATION These unaudited results are the first to be reported under International Financial Reporting Standards. The information for the year ended 31st March 2005 does not constitute statutory accounts as defined by section 240 of the Companies Act 1985. A copy of the Group's UK GAAP statutory accounts for the year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified. ACCOUNTING POLICIES The interim financial report has been prepared in accordance with anticipated International Financial Reporting Standards (IFRS). The accounting policies and basis of preparation followed in the interim report where they differ from the 2005 Annual Report and Accounts are shown in the Restatement of Financial Information under IFRS. The reconciliations of equity at 1st April 2004 (date of transition to IFRS), 30th September 2004 and at 31st March 2005 ( date of last UK GAAP financial statements) and the reconciliation of profit for the period to 30th September 2004 and to 31st March 2005 as required by IFRS 1, are shown in the 'Restatement of Financial Information under IFRS' below. The figures for the year ended 31st March 2005 and half year ended 30th September 2004 are shown as restated. The financial information presented in this document has been prepared on the basis of all IFRSs, including International Accounting Standards (IAS) and interpretations issued by the International Accounting Standards Board (IASB) and its committees, and as interpreted by any regulatory bodies applicable to the Group published by 30th September 2005. These are subject to ongoing amendment by the IASB and subsequent endorsement by the European Commission and are therefore subject to possible change. Further standards and interpretations may also be issued that will be applicable for financial years beginning on or after 1st April 2005 or that are applicable to later accounting periods but may be adopted early. The Group's first IFRS financial statements may, therefore, be prepared in accordance with some different accounting policies from the financial information presented here. In preparing this financial information, the Group has assumed that the European Commission will endorse the amendment to IAS 19, 'Employee Benefits - Actuarial Gains and Losses, Group Plans and Disclosures', which allows actuarial gains and losses to be recognised in full through equity. 2. DIVIDENDS Half year to Half year To Year to 30th September 30th September 31st March Amounts recognised as distributions to share holders in the period: 2005 2004 2005 Â£'000 Â£'000 Â£'000 ------------------------ --------- -------- -------- Final dividend of 6.35p for the year ended 31st March 2005 (2004: 6.05p) per share 2,771 2,640 2,640 ------------------------ --------- -------- -------- Proposed interim dividend of 2.53p for the year ended 31st March 2006 (2005: 2.44p) per share 1,104 1,064 1,064 ------------------------ --------- -------- -------- The proposed interim dividend was approved by the Board on 1st November 2005 but was not included as a liability as at 30th September 2005, in accordance with IAS 10 'Events after the balance sheet date'. 3. EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE Earnings per share is calculated by dividing the profit attribute to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted 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, adjusted for the effects of dilutive options. Half year to Half year to Year to 30thSeptember 30thSeptember 31stMarch 2005 2004 2005 Â£'000 Â£'000 Â£'000 Profit after tax 3,818 2,662 6,792 ------- ------- ------- Weighted average number of shares 43,632,068 43,632,068 43,632,068 ---------- ---------- ---------- Earnings per share - basic and diluted 8.75p 6.11p 15.57p ------- ------- -------- Restatement of financial Information under IFRS The reconciliations of equity at 1st April 2004 (date of transition to IFRS) and at 31st March 2005 (date of last UK GAAP financial statements) and the reconciliation of profit for 2005, as required by IFRS 1, are shown below: Reconciliation of Equity at 1st April 2004 UK GAAP Unaudited effect of transition to IFRS Unaudited IFRS Â£'000 Â£'000 Â£'000 Property, plant and equipment 31,043 31,043 Investments (c) 704 253 957 Deferred tax asset - 1,975 1,975 _____ _____ ______ Non-current assets 31,747 2,228 33,975 ------ ----- ------ Inventories 4,527 4,527 Trade and other receivables 13,697 13,697 Cash and cash equivalents 25,393 25,393 ------ ------ Current 43,617 43,617 assets ------ ------ Current liabilities Trade and other payables (13,697) 2,640 (11,057) (b) Current tax liabilities (1,158) - (1,158) Retirement benefit obligation - (6,586) (6,586) (a) Deferred (1,374) (76) (1,450) tax ------- ------ ------- Total liabilities (16,229) (4,022) (20,251) -------- ------- ------- Total assets less Total liabilities 59,135 (1,794) 57,341 ------ ------- ------- Shareholders' equity Share 4,363 4,363 capital Share premium account 874 874 Other 13 13 reserves Retained earnings 53,885 (1,794) 52,091 ------ ------- ------ Total 59,135 (1,794) 57,341 equity ------ ------- ------ Reconciliation of Equity at 31st March 2005 UK GAAP Unaudited effect of transition to IFRS Unaudited IFRS Â£'000 Â£'000 Â£'000 Property, plant and equipment 33,163 33,163 Investments (c) 630 354 984 Deferred tax asset - 1,949 1,949 --- _____ _____ ______ Non-current assets 33,793 2,303 36,096 ------ ----- ------ Current assets Inventories 5,459 5,459 Trade and other receivables 16,781 16,781 Cash and cash equivalents 25,074 25,074 ------ ------ Current 47,314 47,314 assets ------ ------ Current liabilities Trade and other payables (15,764) 2,771 (12,993) (b) Current tax liabilities (1,332) - (1,332) Retirement benefit obligation - (6,498) (6,498) (a) Deferred (1,919) (106) (2,025) tax ------- ------- ------- Total liabilities (19,015) (3,833) 22,848 -------- ------- ------ Total assets less Total liabilities 62,092 (1,530) 60,562 ------ ------- ------ Shareholders' equity Share 4,363 4,363 capital Share premium account 874 874 Other 13 13 reserves Retained earnings 56,842 (1,530) 55,312 ------ ------- ------ Total 62,092 (1,530) 60,562 equity ------ ------- ------ Reconciliation of profit for.the.period.ended 31st March 2005 Reconciliation for the year ended 31st March 2005 UK GAAP Unaudited effect of transition to IFRS Unaudited IFRS Â£'000 Â£'000 Â£'000 Revenue 69,037 69,037 -------- -------- Group Operating Profit 8,566 8,566 Finance 1,066 1,066 Income ------- ------- Profit Before 9,632 9,632 Tax Income Tax (2,840) - (2,840) ------- --- ------- Net Profit 6,792 - 6,792 ------- --- ------- Explanation of reconciling items between UK GAAP and IFRS a) Retirement benefit schemes - Accounting for pensions in accordance with IAS 19 requires the pension asset/liability to be brought onto the balance sheet. At 31st March 2004 the Group's defined benefit pension schemes were in deficit under IAS 19 requiring a pension liability of Â£6,586,000 to be shown on the balance sheet. We have chosen to apply the amendment to IAS19 which allows actuarial gains and losses to be recognised immediately in the Statement of Recognised Income and Expense i.e. actuarial gains and losses will be taken directly to reserves. b) Dividends - Under UK company law, companies were required to provide for their final dividend in the closing balance sheet and in advance of the dividend being declared and approved by the Annual General Meeting. Under IAS 10, 'Events after the balance sheet date', the dividend cannot be provided in the year end balance sheet as, at that date, the dividend did not represent a liability. At 31st March 2005 accrued dividends of Â£2,771,000 (2004 Â£2,640,000) were removed from other payables. c) Investments - Under UK company law, companies accounted for investments at cost and showed the market value by way of a note. Under IAS the fair value (based on market prices) is shown on the balance sheet requiring an uplift of Â£354,000 at 31st March 2005 (2004 : Â£253,000) Reconciliation of Equity at 30th September 2004 The reconciliation of equity at 30th September 2004 and the reconciliation of profit for the six months ended 30th September 2004 have been included below to enable a comparison of the 2005 published interim figures with those published in the corresponding period of the previous financial year. UK GAAP Unaudited effect of transition to IFRS Unaudited IFRS Â£'000 Â£'000 Â£'000 Property, plant and equipment 32,303 32,303 Investments (f) 602 352 954 Deferred tax asset - 1,975 1,975 _____ ____ _____ Non-current assets 32,905 2,327 35,232 ------ ----- ------ Current assets Inventories 4,953 4,953 Trade and other receivables 13,149 13,149 Cash and cash equivalents 23,777 23,777 ------ ------ Current 41,879 41,879 assets ------ ------ Current liabilities Trade and other payables (11,436) 1,065 (10,371) (e) Current tax liabilities (596) - (596) Retirement benefit obligation - (6,586) (6,586) (d) Deferred (2,020) (105) (2,125) tax ------ ------- --------- Total liabilities 14,052 (5,626) (19,678) ------ ------- -------- Total assets less Total liabilities 60,732 (3,299) 57,433 ------ ------- -------- Shareholders' equity Share 4,363 4,363 capital Share premium account 874 874 Other 13 13 reserves Retained earnings 55,482 (3,299) 52,183 ------ ------- ------ Total 60,732 (3,299) 57,433 equity ------ ------- ------ Reconciliation of profit for the period ended 30th September 2004 UK GAAP Unaudited effect of transition to IFRS Unaudited IFRS Â£'000 Â£'000 Â£'000 Revenue 31,508 31,508 -------- --- -------- Group Operating Profit 3,327 3,327 Finance Income 478 478 ----- --- ----- Profit Before Tax 3,805 3,805 Income Tax (1,143) - (1,143) ------- --- ------- Net Profit 2,662 - 2,662 ------- --- ------- Explanation of reconciling items between UK GAAP and IFRS: d) Retirement benefit schemes - Accounting for pensions in accordance with IAS 19 requires the pension asset/liability to be brought onto the balance sheet. At 30th September 2004 the Group's defined benefit pension schemes were in deficit under IAS 19 requiring a pension liability of Â£6,586,000 to be shown on the balance sheet. e) Dividends - Under UK company law, companies were required to provide for their interim dividend in the closing balance sheet and in advance of the dividend being declared. Under IAS 10, 'Events after the balance sheet date', the dividend cannot be provided in the half year balance sheet as, at that date, the dividend did not represent a liability. At 30th September 2004 accrued dividends of Â£1,065,000 were removed from other payables. f) Investments - Under UK company law, companies accounted for investments at cost and showed the market value by way of a note. Under IAS the fair value (based on market prices) is shown on the balance sheet requiring an uplift of Â£352,000 at 30th September 2004. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Castings (CGS)

Full Archive

UK 100

Latest directors dealings

All directors dealings today