14th Aug 2018 14:26
LONDON (Alliance News) - Castings PLC on Tuesday said it expects reorganisation of its machinery unit to bring trading improvements in the second half of its financial year to the end of March 2019.
The stock was trading 4.8% lower on Tuesday at 404.75 pence per share.
Ahead of its annual general meeting, the iron foundries company said the demand for its products from the main customers remains strong.
Castings said it progresses on the turnaround project at its machined components supplying subsidiary CNC Speedwell.
As part of the reorganisation, the company said it plans to close the Fradley site and consolidate the machining business to operate from the newly built facility at Brownhills.
In addition, Castings said it expects the trading results of the machining business to improve during the second half of financial 2019. However, the company noted that the level of reorganisation is such that the machinery unit is unlikely to return to profitability during financial 2019.
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