Annual sales and profits grow for Castings

The turnover of the group increased 12 per cent from £201 million in 2022-2023 to £224mwith a rise in profit before tax to £21.3m from £16.7m

Demand from customers was very strong during the year, particularly during the first half.

Heavy truck customers increased their build rates to satisfy an unprecedented level of demand, which was caused in part by the backlogs associated with the Covid period.

In order to satisfy the elevated schedules, the group outsourced the production of some castings for a period of time to supplement its own internal production.

Castings is currently operating at a level approximately 20 per cent below the highest point in 2023-2024.

The group had a year of relatively stable input prices following very significant increases in raw materials and energy in the previous financial year.

In foundries demand was particularly high in the first six months and then reduced during the thrid quarter and again in the fourth.

In November the board approved the installation of an additional foundry production line at its William Lee site in Dronfield.

It is expected that the new line will be commissioned, on time and in line with budget, in June 2025 and at a cost of approximately £17m Itt will add up to 12,000 tonnes of additional gross foundry capacity which represents a 15 per cent increase on the group's current capacity.

There was a very good performance in the machining business CNC Speedwell at the Brownhills site.

Castings' heavy truck customers are suggesting that the current lower levels of demand are likely to continue in the short-term with the potential for a slight increase in the autumn.