Interim Results
27 November 2003 - 8:00PM
UK Regulatory
RNS Number:5279S
Castings PLC
27 November 2003
CASTINGS PLC
RESULTS FOR HALF YEAR ENDED 30 SEPTEMBER 2003
SUMMARISED GROUP PROFIT AND LOSS ACCOUNT
SIX MONTHS ENDED SIX MONTHS ENDED YEAR ENDED
30 SEPT 2003 30 SEPT 2002 31 MARCH 2003
#000 #000 #000
NET TURNOVER 29,072 27,856 59,895
______ ______ ______
OPERATING PROFIT 3,493 3,593 8,614
EXCEPTIONAL ITEM-PENSION COSTS - - (4,052)
OTHER INCOME 540 591 1,132
_____ _____ ______
PROFIT BEFORE TAXATION 4,033 4,184 5,694
TAXATION ON PROFITS 1,210 1,255 1,549
_____ _____ _____
PROFIT ATTRIBUTABLE TO SHAREHOLDERS 2,823 2,929 4,145
DIVIDENDS 1,038 1,012 3,573
_____ _____ _____
RETAINED PROFIT 1,785 1,917 572
_____ _____ _____
INTERIM DIVIDEND DECLARED 2.38PENCE 2.32PENCE 8.19PENCE
-PENCE PER SHARE
EARNINGS PER SHARE * BASIC 6.47PENCE 6.72PENCE 9.50PENCE
&
DILUTED
-ADJUSTED FOR EXCEPTIONAL - - 16.00PENCE
ITEM
SUMMARISED GROUP BALANCE SHEET
30 SEPT 2003 30 SEPT 2002 31 MARCH 2003
#000 #000 #000
TANGIBLE ASSETS 31,295 30,708 32,067
INVESTMENTS 704 704 704
CURRENT ASSETS
STOCKS 3,660 3,146 4,284
DEBTORS 11,960 12,865 12,863
CASH AT BANK 22,636 24,542 25,522
______ ______ ______
38,256 40,553 42,669
CREDITORS - UNDER ONE YEAR (10,417) (11,947) (17,740)
______ ______ ______
NET CURRENT ASSETS 27,839 28,606 24,929
PROVISIONS FOR LIABILITIES/CHARGES (1,319) (1,939) (966)
58,519 58,079 56,734
______ ______ ______
CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL 4,363 4,363 4,363
SHARE PREMIUM 874 874 874
RESERVES 53,282 52,842 51,497
______ ______ ______
58,519 58,079 56,734
______ ______ ______
SUMMARISED CASH FLOW STATEMENT 30 SEPT 2003 30 SEPT 2002 31 MARCH 2003
#000 #000 #000
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,723 4,193 10,750
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE:
INTEREST RECEIVED 540 591 1,132
TAXATION (1,363) (1,049) (2,572)
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT:
PURCHASE OF TANGIBLE FIXED ASSETS (1,233) (4,079) (7,673)
PURCHASE OF INVESTMENTS - - -
SALE OF TANGIBLE FIXED ASSETS - 6 26
EQUITY DIVIDENDS PAID (2,561) (2,439) (3,451)
CASH OUTFLOW BEFORE USE OF ______ ______ ______
LIQUID RESOURCES AND FINANCING (2,894) (2,777) (1,788)
MANAGEMENT OF LIQUID RESOURCES:
DECREASE IN SHORT-TERM DEPOSITS 2,897 2,606 1,642
FINANCING:
CHANGE IN ORDINARY SHARE CAPITAL - 47 47
_____ _____ _____
INCREASE/(DECREASE)IN CASH 3 (124) (99)
_____ _____ _____
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
FUNDS
INCREASE/(DECREASE) IN CASH IN THE PERIOD 3 (124) (99)
DECREASE IN LIQUID RESOURCES (2,897) (2,606) (1,642)
_____ _____ _____
CHANGE IN NET FUNDS FROM CASH FLOWS (2,894) (2,730) (1,741)
OPENING NET FUNDS 26,226 27,967 27,967
______ ______ ______
CLOSING NET FUNDS 23,332 25,237 26,226
______ ______ ______
1)THE HALF YEAR RESULTS ARE UNAUDITED.THE ACCOUNTS FOR THE YEAR TO 31 MARCH 2003
SET OUT ABOVE ARE ABRIDGED.FULL ACCOUNTS FOR THE YEAR,ON WHICH THE AUDITORS OF
THE GROUP HAVE GIVEN AN UNQUALIFIED REPORT,HAVE BEEN DELIVERED TO THE REGISTRAR
OF COMPANIES.
2)THE INTERIM INFORMATION HAS BEEN PREPARED ON THE BASIS OF THE ACCOUNTING
POLICIES SET OUT IN THE GROUP'S 2003 ANNUAL REPORT AND ACCOUNTS.
3)EARNINGS PER SHARE IS CALCULATED ON THE PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION OF #2,823,000 (2002: #2,929,000) AND ON THE WEIGHTED AVERAGE NUMBER OF
SHARES IN ISSUE DURING THE PERIOD OF 43,632,068(2002: 43,612,068).
4)THE LAST DAY ON WHICH TRANSFERS CAN BE LODGED WITH THE REGISTRAR FOR
TRANSFEREES TO RECEIVE THE INTERIM DIVIDEND IS 12 DECEMBER 2003,AND THE INTERIM
DIVIDEND WILL BE POSTED ON 9 JANUARY 2004.
COPIES OF THE INTERIM REPORT WILL BE AVAILABLE AT THE REGISTERED OFFICE OF THE
COMPANY AND WILL BE SENT TO SHAREHOLDERS ON 3 DECEMBER 2003.
CHAIRMAN'S STATEMENT
PROFIT BEFORE TAX FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 WAS #4,033,000
COMPARED WITH #4,184,000 IN THE PERIOD TO 30 SEPTEMBER 2002.
TURNOVER INCREASED BY 4.4%, BUT OPERATING PROFIT REDUCED BY 2.8% AND INVESTMENT
INCOME WAS AGAIN AT A LOWER LEVEL.
THE REDUCTION IN MARGIN WAS CAUSED BY UNPRECEDENTED RISES IN RAW MATERIALS,
NATIONAL INSURANCE COSTS AND EMPLOYER LIABILITY INSURANCE. WE WERE ALSO
SUBJECTED TO A MAJOR POWER FAILURE CAUSED BY A FIRE IN A LOCAL SUBSTATION, WHICH
RESULTED IN TWO DAYS LOST PRODUCTION IN OUR BROWNHILLS FOUNDRY.
CONSIDERING THE ABOVE PROBLEMS IT IS A CREDIT TO OUR MANAGEMENT AND WORKFORCE
THAT WE ACHIEVED A SATISFACTORY HALF YEAR RESULT.
ALTHOUGH TURNOVER HAS INCREASED DURING THE FIRST SIX MONTHS, IT IS NOW APPARENT
THAT THE ANTICIPATED REDUCTION IN SALES REPORTED IN AUGUST HAS OCCURRED AND WE
BELIEVE THERE WILL BE FURTHER REDUCTIONS TOWARDS THE END OF THE CURRENT SIX
MONTHS. HOWEVER, WE ARE CONSIDERABLY ENCOURAGED BY THE FACT WE HAVE OBTAINED NEW
CONTRACTS FROM SEVERAL CUSTOMERS WHICH WILL BENEFIT BOTH OUR FOUNDRY AND
MACHINING BUSINESSES IN THE FUTURE.
OUR CASH POSITION HAS REDUCED FROM LAST YEAR'S LEVEL MAINLY DUE TO OUR LUMP SUM
CONTRIBUTION TO THE PENSION FUNDS AND ALSO CAPITAL EXPENDITURE BUT THE BOARD DO
NOT CONSIDER THE LEVEL TO BE EXCESSIVE. WE ARE STILL INVESTING TO IMPROVE
PRODUCTIVITY AND WE WILL BE EXPANDING OUR MACHINING OPERATIONS, BOTH OF WHICH
REQUIRE CAPITAL. FINANCING WILL BE OUT OF OUR OWN RESOURCES WHICH THE BOARD
BELIEVES TO BE PRUDENT AND COST EFFECTIVE. WE WILL CONSIDER SPECIAL DIVIDENDS IF
FUNDS APPEAR TO BE RETURNING TO PREVIOUS LEVELS.
AN INTERIM DIVIDEND OF 2.38 PENCE PER SHARE HAS BEEN DECLARED AND WILL BE SENT
TO SHAREHOLDERS ON 9 JANUARY 2004.
B J COOKE. CHAIRMAN.
CASTINGS PLC. LICHFIELD ROAD. BROWNHILLS. WEST MIDLANDS. WS8 6JZ
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MGMZMDVFGFZM