30th Nov 2006 09:00
Castings PLC30 November 2006 Castings p.l.c. INTERIM FINANCIAL REPORT 2006 Chairman's Statement Profit before tax for the six months ended 30th September 2006 was £4,934,000compared with £5,422,000 in the period ended 30th September 2005. It is disappointing to declare a reduced profit for the half year, despiteincreased turnover and production running at a high level. The reduction has been caused by numerous material and commodity price increasesoutside our control, coupled with the moving of the machine shop from FradleyPark to Brownhills. As indicated in my statement last year we have been subjected to significantincreases in electricity prices from 1st October 2006. We are negotiating withour customers for compensation and the timing of resolutions will have a furtherdetrimental effect on our full year profits. Once negotiations are complete, normal and reasonable profitability shouldreturn on future trading, but the Board believes that the full year result isunlikely to reach the levels of 2005/6. Despite these problems, it appears we will enjoy a full order book for theforeseeable future and our machining business is expecting continued growth inthe new year. An interim dividend of 2.58 pence per share has been declared and will be paidon 12th January 2007 to shareholders who are on the register at 15th December2006. Brian J Cooke, Chairman Consolidated Income Statement Half year to Half year to Year toUnaudited 30thSeptember 30thSeptember 31stMarch 2006 2005 2006 £'000 £'000 £'000Revenue 38,938 36,379 76,696 -------- -------- -------- Operating profit 4,336 4,877 11,561 Finance income 598 545 1,140 -------- -------- -------- Profit before income tax 4,934 5,422 12,701 Income tax expense 1,480 1,604 3,946 ------- ------- ------- Profit for the period 3,454 3,818 8,755 ------- ------- ------- Earnings per shareBasic and diluted 7.92p 8.75p 20.07p ------- ------- -------- Consolidated Balance Sheet Unaudited 30thSeptember 30thSeptember 31stMarch 2006 2005 2006 £'000 £'000 £'000 Assets Non-current assestsProperty, plant and equipment 35,047 33,419 32,566Financial assets 1,025 1,027 1,139Deferred tax asset 574 1,949 574 -------- -------- -------- 36,646 36,395 34,279 -------- -------- -------- Current assetsInventories 3,818 4,900 5,276Trade and other receivables 19,493 17,227 20,449Cash and cash equivalents 26,155 25,040 27,686 -------- -------- -------- 49,466 47,167 53,411 -------- -------- -------- Total assets 86,112 83,562 87,690 -------- -------- -------- Liabilities Current liabilitiesTrade and other payables 13,261 11,838 15,063Current tax liabilities 962 1,191 1,808 -------- -------- -------- 14,223 13,029 16,871 -------- -------- -------- Non-current liabilitiesRetirement benefit obligations 1,913 6,498 1,913Deferred tax liabilities 2,325 2,396 1,781 ------- ------- ------- 4,238 8,894 3,694 ------- ------- -------Total liabilities 18,461 21,923 20,565 -------- -------- -------- Net Assets 67,651 61,639 67,125 -------- -------- -------- Shareholders' equityShare capital 4,363 4,363 4,363 Share premium account 874 874 874 Other reserves 13 13 13 Retained earnings 62,401 56,389 61,875 -------- -------- --------Total equity 67,651 61,639 67,125 -------- -------- -------- Consolidated Cash Flow Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptemberUnaudited 2006 2005 2006 £'000 £'000 £'000 Cash flows from operating activitiesCash generated fromoperations 7,285 6,138 12,678Finance income 598 545 1,140Tax paid (1,792) (1,387) (3,060) --------- --------- --------- Net cash generated fromoperating activities 6,091 5,296 10,758 Cash flows from investing activitiesPurchase of property, plantand equipment (4,818) (2,559) (4,301)Purchase of financial assets (47) - -Proceeds from disposal ofproperty, plant andequipment - - 9Proceeds from disposal offinancial assets 153 - 21 ______ ______ ______Net cash used in investingactivities (4,712) (2,559) (4,271) Cash flow from financing activitiesDividends paid toshareholders (2,910) (2,771) (3,875) --------- --------- ---------Net cash used in financingactivities (2,910) (2,771) (3,875) Net increase/(decrease) incash and cash equivalents (1,531) (34) 2,612Cash and cash equivalents atbeginning of period 27,686 25,074 25,074 -------- -------- -------- Cash and cash equivalents atend of period 26,155 25,040 27,686 -------- -------- -------- Consolidated Statement of Recognised Income and Expense Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptemberUnaudited 2006 2005 2006 £'000 £'000 £'000 Profit for period 3,454 3,818 8,755 Change in fair value ofavailable for sale financialassets (8) 43 176 Actuarial (losses)/ gains ondefined pension schemes - - 1,987 Tax effect of gains andlosses recognised directlyin equity (10) (13) (649) ------ ------ ------- Total recognised income forperiod 3,436 3,848 10,269 ------- ------- -------- Supplementary Statement Reconciliation of profit from operations to net cash inflow from operatingactivities Half year Half year Year toUnaudited to to 31stMarch 30thSeptember 30thSeptember 2006 2005 2006 £'000 £'000 £'000Profit before tax 4,934 5,422 12,701 Depreciation 2,337 2,303 4,889 Finance income (598) (545) (1,140) Excess of employer pensioncontributions over incomestatement charge - - (2,357) (Increase)/decrease ininventories 1,458 559 183 (Increase)/decrease inreceivables 956 (446) (3,668) Increase/(decrease) inpayables (1,802) (1,155) 2,070 --------- --------- -------Net cash inflow fromoperating activities 7,285 6,138 12,678 ------- ------- -------- Notes 1. BASIS OF PREPARATION Financial information presented here is unaudited. Comparatives for the fullyear ended 31st March 2006 are not the Group's full statutory accounts for thatyear. A copy of those accounts have been delivered to the Registrar ofCompanies. The auditors' report on those accounts was unqualified and did notcontain a statement under Section 237(2)-(3) of the Companies Act 1985. 2. ACCOUNTING POLICIES The interim consolidated financial statements do not include all information anddisclosures required in the annual financial statements. They have, however,been prepared using the same accounting policies as used in the preparation ofthe Group's annual financial statements for the year ended 31st March 2006. 3. DIVIDENDS Half year Half year to 30th to 30th September September --------- ---------Amounts recognised as distributions toshareholders in the period: 2006 2005 £'000 £'000 --------- ---------Final dividend of 6.67p for the yearended 31st March 2006 (2005: 6.35p)per share 2,910 2,771------------------------------- --------- --------- The directors have declared an interim dividend in respect of the financial yearending 31st March 2007 of 2.58 pence per share (2006: 2.53p),which will be paidon 12th January 2007. 4. EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE Earnings per share is calculated by dividing the profit attributable to ordinaryshareholders by the weighted average number of ordinary shares outstandingduring the period. There are no share options, hence the diluted earnings pershare is the same calculation.--------------------------------------------- Half year Half year Year to to to 31stMarch 30thSeptember 30thSeptember 2006 2005 2006 £'000 £'000 £'000 Profit after tax 3,454 3,818 8,755 ---------- --------- --------- Weighted average number ofshares 43,632,068 43,632,068 43,632,068 ---------- --------- --------- Earnings per share - basicand diluted 7.92p 8.75p 20.07p ---------- --------- --------- This information is provided by RNS The company news service from the London Stock Exchange