Walsall manufacturer returns to pre-Covid trading levels
Walsall—based manufacturer Castings has said its turnover increased from £115m in 2020 to £149m in 2021 in its annual financial report.
The firm said in November it had been impacted by supply chain disruption, particularly with semiconductors, which has affected its commercial vehicle customers – who represent 70% of group revenue.
It has also been hampered by recruitment difficulties, meaning it closed its machining business for a week at the end of September.
However, Castings says it has seen an improvement which has put it in line with the three year average before Covid.
There has been large increases in raw materials and other input prices in order to maintain production. These increases are being passed on to customers, but there is a delay in recovery which affects Castings’ ongoing profits in the short-term.
Chairman Brian Cooke said: “It is expected that costs will continue to increase in the current year, including significant electricity rises when our current fixed contract comes to an end on 30 September 2022.
“Our customers have been made aware of the situation and the fact that, in order to continue to supply, the cost increases will be passed on.
“Our customers are now increasing their demand and, in this respect, they are more successfully managing the supply of semiconductors and other items in the supply chain. It is hoped that this will continue so we can enjoy improved sales in the current financial year.
“Underpinning the improved outlook and on top of new customer platforms where we have greater content, there have been a number of market wins in other sectors including wind energy, trailer braking and coupling systems and innovative agricultural products.”