Record profits for Castings but Euroland worries continue

Castings, which as the name suggests, makes iron castings, has announced record profits for the year ending March 31st while sounding a note of caution on export orders.

By most measures Castings has done well, as turnover increased from £105.4m to a record £126.3m, of which 66% came from exports. Profits before tax increased from £15.5m to £23.1m.

There are three companies which operate under the Castings umbrella: Castings and CNC Speedwell both operate from Brownhills in the West Midlands while Wm Lee is based in Dronfield, South Yorkshire.

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The firm is benefiting from new warehousing in Brownhills, opened in January, which is helping with logistics and stock management.

Production at Castings and and WM Lee is described as "satisfactory" but the firm notes there is still 20% spare capacity. The hope is that the European truck industry, a big market for Castings, will return to pre-2008 levels.

CNC has seen an "improved" year, with £5.4m invested in new machines, and it has bagged several contract wins from the automobile industry.

All this has seen the stock rise a pleasing 5% in morning trading but the firm itself is ambivalent on future prospects, pointing out exports are somewhat at the mercy of the current crisis in the Eurozone. Wednesday's release ends with this comment from the Chairman, Brian Cooke: "it is hoped any economic problems will not affect us as they did in 2008/9".

BS