12th Jun 2019 09:24
(Alliance News) - Iron castings and machining firm Castings PLC proposed a special payout Wednesday after annual profit and revenue both improved amid a stronger second half of the year and a "sound" order book.
For the year ended March, pretax profit widened 17% to GBP14.1 million from GBP12.1 million the year prior. This was after revenue rose 13% to GBP150.2 million from GBP133.3 million the year before.
"The foundries have seen an increase in output and improved profitability compared to the previous year," Castings Chair Brian Cooke said. "Whilst profit margins reduced in the first half of the year, we have seen a strong performance in the second half which has seen margins in excess of the previous year. Our investment in robotic handling and other process automation have contributed to a rise in productivity during the year along with process quality improvements."
Cooke added that its CNC Speedwell business had seen its loss reduced after the firm was "brought back under operational control" with a new management team in place.
Castings proposed a 11.40 pence per share final dividend, up 2.5% from 11.12p the year prior. For the full year, the dividend rose 1.9% to 14.78p from 14.50p the year before.
In addition, due to the cash position at the firm, Castings also proposed a 15.00p special dividend.
"It appears at the present time our order book is sound and schedules remain stable," Cooke continued. "In particular demand for commercial vehicles is currently strong and it is hoped this trend will continue."
Shares in Castings were 3.5% higher at 442.00p in London on Wednesday.
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