Castings PLC, a UK-based manufacturer of iron castings and machining operations, released its interim management report for the six months ended September 30, 2024. The company reported sales of £89.2 million, a decrease from £111.3 million in the previous year, and a profit before tax of £4.1 million, down from £10.3 million. The decrease in sales and profit was expected and attributed to lower demand for heavy trucks, which accounts for approximately 75% of the groups revenue. The company also reported a reduction in output and external sales revenue for the period.
During the period, Castings PLC completed the asset purchase of Castings Ductile, which commenced production in early July and is now trading profitably. The company also provided an update on its new foundry production line being installed at the Dronfield site, stating that the project remains within budget and is expected to be completed by summer 2025.
In terms of foundry operations, the profit for the period was £2.4 million, compared to £7.7 million in the previous year, representing a margin on external sales of 2.7%. The machining operation, CNC Speedwell, saw a reduction in total revenue of 11.4% and reported a profit of £1.1 million.
The company maintains a strong balance sheet with cash levels of over £16 million, which have decreased due to dividend payments and foundry capacity investment. Castings PLC also published its first Sustainability Report, which is available on their website.
Looking ahead, the company expects production efficiencies to improve in the second half of the year and anticipates trading in line with market expectations for the full year. The demand schedules continue to reflect lower build rates from heavy truck OEMs. In the medium term, Castings PLC sees opportunities for growth, including new parts for existing customers, expansion into the US market, and diversification into offshore energy, agriculture, and rail markets.
The company declared an interim dividend of 4.21 pence per share, payable on January 2, 2025, to shareholders on the register as of November 22, 2024.