Trading Update and Notice of Results
Castings PLC announces a trading update in respect of the six months ended 30 September 2020.
We reported in August 2020 that demand from the commercial vehicle sector had increased to over 60% of pre-Covid output levels. Forward schedules at that time were suggesting a further increase to approximately 85% and it is pleasing to report that the monthly demand is now at this level.
Future schedules currently suggest output levels moving back towards pre-Covid levels during the third quarter of the financial year. However, there remains uncertainty regarding the impact of Brexit and the pandemic and therefore whether this forecast demand increase will materialise and how sustainable it might be.
In the light of the pandemic, the board has focussed on cash preservation during the six-month period; the balance sheet remains strong with cash levels of £35 million as at 30 September 2020.
It was previously reported that the group's Fradley site had been closed and the machining business consolidated at the Brownhills facility. The group completed on the sale of this site for £1.95 million on 22 September 2020.
Notice of results
The Group intends to announce its half year results on 13 November 2020.
S J Mant
Director and Company Secretary
Castings PLC, Lichfield Road, Brownhills, West Midlands, WS8 6JZ