Castings PLC on Wednesday said that low levels of demand among heavy truck customers are set to continue as it upped its dividend on the back of a profit surge.

The Brownhills, England-based iron casting and machining firm said pretax profit jumped 27% to £21.3 million in the financial year ended March 31 from £16.7 million a year prior.

Revenue climbed 12% to £224.4 million from £201.0 million. Finance income jumped to £1.5 million from £344,000.

Cost of sales increased 12% to £181.1 million from £162.1 million, while distribution costs contracted by 14% to £4.7 million from £5.4 million.

Castings recommended a final dividend of 14.19 pence per share, up 5.0% from 13.51p a year prior. This brings the final payout to 18.32p, up 5.6% from 17.35p.

Looking ahead, Chair Alec Jones said: ‘Our heavy truck customers are suggesting that the current lower levels of demand are likely to continue in the short-term with the potential for a slight increase in the autumn. We will continue to develop opportunities with existing customers in areas such as the electrification of lighter trucks and build relationships in other markets such as wind energy, agriculture and in the US.’

Castings shares fell 5.4% to 350.00 pence each on Wednesday morning in London.

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