Castings PLC AGM Statement (9586V)
13 August 2020 - 4:00PM
UK Regulatory
TIDMCGS
RNS Number : 9586V
Castings PLC
13 August 2020
Castings plc
Interim Management Statement and AGM
Castings PLC announces a trading update ahead of the AGM being
held later this morning.
As previously reported, the group experienced a significant fall
in demand at the start of the financial year with approximately 80%
of our workforce being placed on furlough leave under the
Coronavirus Job Retention Scheme.
The group is most closely aligned to the commercial vehicle
sector with approximately 70% of our revenue associated with
heavy-truck OEMs. As was widely reported, OEMs closed their
facilities towards the end of March and only started limited
production again in early May. As a result, during April and May
2020, our despatch weight reduced by c. 80% compared to the levels
immediately preceding the COVID-19 lockdown. Since that time, we
have seen a steady increase in demand from the truck sector to over
60% of pre-COVID output levels.
Whilst the traditional summer shut down periods can impact the
reliability of forecast underlying demand, forward schedules
suggest an increase to approximately 85% of pre-COVID levels and
therefore the majority of our workforce have now returned to the
business to support the increased production levels. It remains
uncertain as to whether this forecast demand will materialise and
how sustainable it will be; it is not possible to differentiate
between demand to satisfy pre-lockdown truck orders as opposed to
underlying demand.
In the light of the pandemic, the board has focussed on cash
preservation and the balance sheet remains strong. Our investment
remains focused on production techniques and automation
technologies to improve our productivity and profitability.
B.J.Cooke, Chairman
Castings plc, Lichfield Road, Brownhills, West Midlands WS8
6JZ
13 August 2020
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END
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