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Castings swings to H1 loss on pandemic impact, but sees gradual improvement
StockMarketWire.com
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Iron castings and machining group Castings said performance had gradually improved after swinging to a first-half loss as the pandemic disrupted output in the first two months of the first half of the year.
For the six months ended 30 September 2020, pre-tax loss of £0.63 million, compared with a profit of £7.34 million year-on-year as sales fell to £41.7 million from £73.1 million.
Output reduced by approximately 80% during the first two months of the period as the commercial vehicle sector, which represents 70% of group revenue, closed production facilities and 80% of its workforce was placed on furlough.
During the following four months, there was a gradual increase in demand from the heavy-truck OEMs such that monthly demand levels were approximately 85% of pre-COVID levels at the end of the period, the company said.
The company declared an interim dividend of 3.57 pence per share up from 3.48p last year.
Looking ahead, Castings said that whilst it had not seen any further significant impact as a result of the pandemic, it did still have the potential to disrupt supply chains and future demand.
'The negotiations on the UK's future trading relationship with the European Union remain ongoing. With over 70% of the group's sales revenue being generated in this market, there remains a potential risk,' it added. At 8:12am: (LON:CGS) Castings PLC share price was +2p at 335p
Story provided by StockMarketWire.com
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