Supply chain issues disrupt Castings
Foundries group Castings has reported a rise in revenue and profit despite being impacted by supply chain disruption.
The Brownhills-based firm said the disruption has affected its commercial vehicle customers – who represent 70 per cent of group revenue.
Revenues came in at £69.7 million for the period – up from £41.7 million last year – with a profit of £5.4 million against a loss of £630,000 in 2020.
Castings has also been hampered by recruitment difficulties, meaning it closed its machining business for a week at the end of September.
In the prior period, demand was significantly reduced as a result of the Covid-19 pandemic, it added.
A statement from the company said: “The group is well positioned to see the benefits of the productivity improvements in both the foundry and machining businesses when supply chain restrictions do ease.
"The automation of finishing processes within the foundries is now largely complete, with the focus now shifting to automating elements of the melting process. The automation investment programme in the machining business will continue in the medium term.
"The group maintains a strong balance sheet with cash levels of £34.6 million; a decrease of £1.4 million during the period."
