Demand "softening" at engineering group

BROWNHILLS engineering group Castings has warned shareholders of a softening in demand post Brexit.

Chairman Brian Cooke said the referendum had given rise to more uncertainty but it was still too early to say what the full impact would be for the firm.

Mr Cooke also used his AGM statement to say that plans to fill a likely profit gap caused by the end of a major contract were also in hand.

Ahead of the meeting, he said: “We have seen a softening in demand from our main customers since the statement in the chairman’s report in June. Our plan to fill the profit gap created by the ending of a major machining contract remains on course with improvements still expected from 2017/18.
 
“We continue to invest in production techniques and technologies to ensure we remain as market leaders and maintain our competitiveness in a post-Brexit marketplace. The referendum result has given rise to uncertainty and it will take time to gauge the effect this may have on the company.”

The market reacted badly to the announcement with the firm’s shares dipping 8% in early trading, down 35p to 420p, before recovering part of the fall throughout the morning to be down 16p at 439p at lunchtime.