Difficult year but things looking up as jobs return at Castings
1 min read
The Midlands-based iron castings and machining group Castings plc said today (23 June) that its last financial year had been "the most difficult trading year we have had to manage for a considerable time". However, business is picking up and some previously redundant jobs were now being filled again.
In the year ending 31 March, turnover fell to £60.6m from £84.8m the previous year and the record of £97.4m reached two years ago. Castings chairman Brian Cooke, said the problems revolved around the world economic situation and the company's main markets being involved in commercial vehicle production in Europe. "Demand dropped rapidly in October 2008 and this continued for a long period of time, but we have seen a slow increase in demand from mid 2009 which hopefully will be sustained," he went on. Pre-tax profit rose from £3.6m to £9.8m.
The company said it was pleased to report that it had started to re-employ some of the employees it had previously made redundant although a return to previous levels of growth would take some time depending on many outside factors beyond its control.
Foundry production was now operating at about 80% of previous levels and extra production was now available from the group's new William Lee foundry. This was operating three days a week, and was proving highly efficient.
It had been a very difficult time for the group's CNC Speedwell machining subsidiary due to the high cost of capital expenditure and low demands from major customers. However, with improved demand plus many orders from new customers now coming into production, CNC's performance was improving.
Looking ahead, Cooke said: "We are encouraged by the recent improvement in demand, but with world economic problems, it is impossible to predict the future. However, the company has also shown its capability in managing the business in difficult times and is well prepared for any further upturn in activity.
