Sales below expectations Castings chairman tells shareholders
BROWNHILLS-based engineering group has issued disappointing new to shareholders; warning them that sales are currently below expectations.
In a statement to the group’s Annual General Meeting, chairman Brian Cook said it was hoped the situation would improve in the second half of the year.
“Following the statement in the chairman’s report in June it is disappointing to report that sales up to the end of July are below our expectations,” said Cook.
“We are also experiencing operational issues due to the change of work mix. Management are addressing the issues and it is hoped, with a forecast of an increasing order book, the situation will improve during the remainder of the financial year.”
Back in June, the group said it had seen full-year revenue growth following strong demand for its products.
Turnover for the year to March 31, 2014 reached £137.4m (2013: £122.2m), an increase of 21%, with pre-tax profits of £21.8m (2013: £19.16m). Two-thirds (67%) of the revenue was derived from exports – an increase on 2013.
It said the results were affected by the disruption following the change in European exhaust emissions regulations from Euro 5 to Euro 6. The increase in demand at short notice created excessive manufacturing and transport costs in order to meet customer requirements.
