Profits and turnover rise for foundries group
Foundries group Castings saw both turnover and profits rise in the year to the end of March helped by strong demand from customers.
Turnover was up 35 per cent from £149 million to £201m with pre-tax profit improving from £12.1m to £16.7m.
Chairman Alan Jones said demand for heavy trucks in particular remained very strong. Demand in other growth sectors such as the United States, wind energy, trailer braking and coupling systems and innovative agricultural products was also continuing to grow.
Heavy truck manufacturers created 75 per cent of revenue in 2022-2023.
After nearly 63 years with Castings, of which 40 had been as chairman, Brian Cooke is standing down as a director and will not be seeking re-election at Castings’ annual general meeting in August.
Mr Cooke joined the company from foundry college in 1960 and was appointed a director six years later. Before becoming chairman in 1983, he served as managing director at Brownhills and then as group chief executive.
Mr Jones said: “Brian has led Castings from the front and everything the group does reflects his energy and wise business acumen. We would all like to thank him for his outstanding contribution over the last seven decades. I am very pleased that he has agreed to remain available to consult with the group after the AGM."
He said that Castings had experienced very significant price increases in raw materials and energy
"The most significant increase related to electricity following the end of our fixed price contract on September 30, 2022. This additional cost of power was surcharged to our customers and although it did not adversely affect group profit, it did impact reported margins.
"Further price increases have been negotiated in respect of other cost rises which have taken effect from the start of the current financial year," he explained.
Mr Jones adid the group was continuing to invest both at Castings Brownhills and William Lee at Dronfield, Derbyshire, to improve productivity, reduce labour costs and improve working conditions.
The CNC Speedwell machining business in Brownhills returned to profitability, with a particularly strong final quarter of the financial year.
Mr Jones said that with higher output levels and improved prices, the current performance of CNC Speedwell was beginning to reflect the level of investment that has been made in the business.
