Sales and profits improve for Castings
Foundry group Castings has seen growth in both sales and profits for the six months to the end of September.
The Brownhills-based business reported pre-tax profit of £7.5 million, up from £5.4m a year earlier with sales up from £69.7m to £85.6m.
It was helped by underlying demand for heavy trucks being strong and the conversion of forward schedules to actual sales improving.
Two of Castings' largest commercial vehicle customers have introduced new engine platforms on which the group has an increased share of parts.
Following the end of the group's fixed price electricity contract, the higher unit cost for power is being surcharged to customers and will increase revenue in the second half of the year.
Output during the half year was up 3.3 per cent at 25,100 tonnes.
The strong group cash position has enabled the continued investment in foundry facilities during the period. The most significant investments include £800,000 on the completion of an automated pouring process on one of its largest production lines and £600,000n on automation of the foundry finishing processes.
CNC Speedwell generated external revenue of £900,000 during the period, a reduction of 42.7 per cent. CNC Speedwell returned to profitability in the final month of the half year.
An interim dividend of 3.84p per share has been declared and that will be paid on January 53 to shareholders who are on the register at November 25.
Chairman Brian Cooke has decided to step down with effect from January 1 and will not be seeking re-election as a director at the next annual general meeting in August.
Alec Jones, currently senior independent director, will succeed him as chairman.
