13th Jun 2018 09:31
LONDON (Alliance News) - Iron castings and machining firm Castings PLC said Wednesday that it recorded a narrowed annual profit due to costs associated with the reorganisation of its machining segment.
A total of GBP3.3 million in non-recurring costs dragged the company's pretax profit down to GBP11.9 million for the financial year ended March 31. This compares with a GBP15.9 million profit the previous year.
The company's revenue grew 12% to GBP133.3 million from GBP118.8 million, driven largely by its foundry segment. Foundry operation revenue from external customers climbed 14% to GBP127.0 million from GBP111.8 million.
Machining operation revenue from external customers, by contrast, actually fell 10% to GBP6.3 million from GBP7.0 million.
A final dividend per share of 11.12 pence will be paid and will bring the total dividend for Castings' financial year to 14.50p. This compares favourably to the 13.97p total dividend paid the previous year.
"Our order book is sound and schedules are increasing. In particular demand for commercial vehicles is currently strong and it is hoped this trend will continue," said Castings Chairman Brian Cooke.
"It is our intention to recruit further directors to strengthen the board," he added.
Shares in Castings were down 1.7% at 416.80p on Wednesday morning.
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