15th Nov 2013 10:22
LONDON (Alliance News) - Castings PLC Friday reported higher profits and revenues for the first half of the fiscal year, driven by strong demand from commercial vehicle customers that it struggled to meet, but said that demand is likely to drop off temporarily in early 2014.
The "exceptional" level of demand was driven by changes to EU emissions rules from the start of next year meaning that vehicles can only be sold if they meet new emissions guidelines. That prompted a rush for older vans before the year-end, while it is likely to mean demand drops in the early part of next year, Castings said.
"In view of this it is impossible to forecast the outcome for the remainder of this financial year," the company said in a statement.
For the six months to end-September, the iron castings and machining company reported a pretax profit of GBP9.57 million, up from GBP9.11 million a year earlier, as revenue rose to GBP65.9 million, from GBP60.4 million.
It said the surge in demand meant it incurred "excessive" costs as its operations and logistics struggled to cope. It also had to recruit new employees at short notice, pushing up training costs.
Castings shares were down 4.9% at 427.9 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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