Castings PLC on Wednesday said it expects annual results to be marginally ahead of market expectations, and the company remains optimistic in its near-term outlook.

The Brownhills, England-based iron casting and machining firm said underlying demand for heavy trucks was ‘particularly strong’ in the first half of the year ended March 31. This demand accounts for about 75% of group revenue.

‘The backlog demand from the Covid period, and the well-publicised supply constraint issues, appears to have now been absorbed by the OEMs and forward schedules are now at a lower level,’ Castings explained.

Looking ahead, the company said the balance sheet ‘remains strong.’

It added: ‘The level of investment has been higher than in recent years and will continue to be so as the new foundry line progresses. Other investments have been focused on replacement equipment, robotics and AI, and sustainability initiatives including solar panels and energy efficient chilling systems in the machine shop.’

The company intends to announce its full year results on June 12.

Shares in Castings were up 0.5% to 374.00 pence each in London on Wednesday.

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