Interim Results

Castings PLC
27 November 2003


CASTINGS PLC

RESULTS FOR HALF YEAR ENDED 30 SEPTEMBER 2003

SUMMARISED GROUP PROFIT AND LOSS ACCOUNT
                                                        SIX MONTHS ENDED          SIX MONTHS ENDED            YEAR ENDED

                                                            30 SEPT 2003              30 SEPT 2002         31 MARCH 2003
                                                                    £000                      £000                  £000

NET TURNOVER                                                      29,072                    27,856                59,895
                                                                  ______                    ______                ______
OPERATING PROFIT                                                   3,493                     3,593                 8,614
EXCEPTIONAL ITEM-PENSION COSTS                                         -                         -               (4,052)
OTHER INCOME                                                         540                       591                 1,132
                                                                   _____                     _____                ______
PROFIT BEFORE TAXATION                                             4,033                     4,184                 5,694
TAXATION ON PROFITS                                                1,210                     1,255                 1,549
                                                                   _____                     _____                 _____
PROFIT ATTRIBUTABLE TO SHAREHOLDERS                                2,823                     2,929                 4,145
DIVIDENDS                                                          1,038                     1,012                 3,573
                                                                   _____                     _____                 _____
RETAINED PROFIT                                                    1,785                     1,917                   572
                                                                   _____                     _____                 _____
INTERIM DIVIDEND DECLARED                                      2.38PENCE                 2.32PENCE             8.19PENCE
-PENCE PER SHARE
EARNINGS PER SHARE             • BASIC                        6.47PENCE                 6.72PENCE             9.50PENCE
                                  &
                                DILUTED
-ADJUSTED FOR EXCEPTIONAL                                              -                         -            16.00PENCE
ITEM


SUMMARISED GROUP BALANCE SHEET
                                                            30 SEPT 2003              30 SEPT 2002         31 MARCH 2003

                                                                    £000                      £000                  £000

TANGIBLE ASSETS                                                   31,295                    30,708                32,067
INVESTMENTS                                                          704                       704                   704
CURRENT ASSETS
STOCKS                                                             3,660                     3,146                 4,284
DEBTORS                                                           11,960                    12,865                12,863
CASH AT BANK                                                      22,636                    24,542                25,522
                                                                  ______                    ______                ______
                                                                  38,256                    40,553                42,669
CREDITORS - UNDER ONE YEAR                                      (10,417)                  (11,947)              (17,740)
                                                                  ______                    ______                ______
NET CURRENT ASSETS                                                27,839                    28,606                24,929
PROVISIONS FOR LIABILITIES/CHARGES                               (1,319)                   (1,939)                 (966)
                                                                  58,519                    58,079                56,734
                                                                  ______                    ______                ______

CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL                                            4,363                     4,363                 4,363
SHARE PREMIUM                                                        874                       874                   874
RESERVES                                                          53,282                    52,842                51,497
                                                                  ______                    ______                ______
                                                                  58,519                    58,079                56,734
                                                                  ______                    ______                ______



SUMMARISED CASH FLOW STATEMENT                                   30 SEPT 2003         30 SEPT 2002         31 MARCH 2003

                                                                         £000                 £000                  £000

NET CASH INFLOW FROM OPERATING ACTIVITIES                               1,723                4,193                10,750
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE:
INTEREST RECEIVED                                                         540                  591                 1,132
TAXATION                                                              (1,363)              (1,049)               (2,572)
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT:
PURCHASE OF TANGIBLE FIXED ASSETS                                     (1,233)              (4,079)               (7,673)
PURCHASE OF INVESTMENTS                                                     -                    -                     -
SALE OF TANGIBLE FIXED ASSETS                                               -                    6                    26
EQUITY DIVIDENDS PAID                                                 (2,561)              (2,439)               (3,451)
CASH OUTFLOW BEFORE USE OF                                             ______               ______                ______
LIQUID RESOURCES AND FINANCING                                        (2,894)              (2,777)               (1,788)
MANAGEMENT OF LIQUID RESOURCES:
DECREASE IN SHORT-TERM DEPOSITS                                         2,897                2,606                 1,642
FINANCING:
CHANGE IN ORDINARY SHARE CAPITAL                                            -                   47                    47
                                                                        _____                _____                 _____
INCREASE/(DECREASE)IN CASH                                                  3                (124)                  (99)
                                                                        _____                _____                 _____
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
FUNDS
INCREASE/(DECREASE) IN CASH IN THE PERIOD                                   3                (124)                  (99)
DECREASE IN LIQUID RESOURCES                                          (2,897)              (2,606)               (1,642)
                                                                        _____                _____                 _____
CHANGE IN NET FUNDS FROM CASH FLOWS                                   (2,894)              (2,730)               (1,741)
OPENING NET FUNDS                                                      26,226               27,967                27,967
                                                                       ______               ______                ______
CLOSING NET FUNDS                                                      23,332               25,237                26,226
                                                                       ______               ______                ______


1)THE HALF YEAR RESULTS ARE UNAUDITED.THE ACCOUNTS FOR THE YEAR TO 31 MARCH 2003
SET OUT ABOVE ARE ABRIDGED.FULL ACCOUNTS FOR THE YEAR,ON WHICH THE AUDITORS OF
THE GROUP HAVE GIVEN AN UNQUALIFIED REPORT,HAVE BEEN DELIVERED TO THE REGISTRAR
OF COMPANIES.

2)THE INTERIM INFORMATION HAS BEEN PREPARED ON THE BASIS OF THE ACCOUNTING
POLICIES SET OUT IN THE GROUP'S 2003 ANNUAL REPORT AND ACCOUNTS.

3)EARNINGS PER SHARE IS CALCULATED ON THE PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION OF £2,823,000 (2002: £2,929,000) AND ON THE WEIGHTED AVERAGE NUMBER OF
SHARES IN ISSUE DURING THE PERIOD OF 43,632,068(2002: 43,612,068).

4)THE LAST DAY ON WHICH TRANSFERS CAN BE LODGED WITH THE REGISTRAR FOR
TRANSFEREES TO RECEIVE THE INTERIM DIVIDEND IS 12 DECEMBER 2003,AND THE INTERIM
DIVIDEND WILL BE POSTED ON 9 JANUARY 2004.

COPIES OF THE INTERIM REPORT WILL BE AVAILABLE AT THE REGISTERED OFFICE OF THE
COMPANY AND WILL BE SENT TO SHAREHOLDERS ON 3 DECEMBER 2003.

CHAIRMAN'S STATEMENT

PROFIT BEFORE TAX FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003 WAS £4,033,000
COMPARED WITH £4,184,000 IN THE PERIOD TO 30 SEPTEMBER 2002.

TURNOVER INCREASED BY 4.4%, BUT OPERATING PROFIT REDUCED BY 2.8% AND INVESTMENT
INCOME WAS AGAIN AT A LOWER LEVEL.

THE REDUCTION IN MARGIN WAS CAUSED BY UNPRECEDENTED RISES IN RAW MATERIALS,
NATIONAL INSURANCE COSTS AND EMPLOYER LIABILITY INSURANCE. WE WERE ALSO
SUBJECTED TO A MAJOR POWER FAILURE CAUSED BY A FIRE IN A LOCAL SUBSTATION, WHICH
RESULTED IN TWO DAYS LOST PRODUCTION IN OUR BROWNHILLS FOUNDRY.

CONSIDERING THE ABOVE PROBLEMS IT IS A CREDIT TO OUR MANAGEMENT AND WORKFORCE
THAT WE ACHIEVED A SATISFACTORY HALF YEAR RESULT.

ALTHOUGH TURNOVER HAS INCREASED DURING THE FIRST SIX MONTHS, IT IS NOW APPARENT
THAT THE ANTICIPATED REDUCTION IN SALES REPORTED IN AUGUST HAS OCCURRED AND WE
BELIEVE THERE WILL BE FURTHER REDUCTIONS TOWARDS THE END OF THE CURRENT SIX
MONTHS. HOWEVER, WE ARE CONSIDERABLY ENCOURAGED BY THE FACT WE HAVE OBTAINED NEW
CONTRACTS FROM SEVERAL CUSTOMERS WHICH WILL BENEFIT BOTH OUR FOUNDRY AND
MACHINING BUSINESSES IN THE FUTURE.

OUR CASH POSITION HAS REDUCED FROM LAST YEAR'S LEVEL MAINLY DUE TO OUR LUMP SUM
CONTRIBUTION TO THE PENSION FUNDS AND ALSO CAPITAL EXPENDITURE BUT THE BOARD DO
NOT CONSIDER THE LEVEL TO BE EXCESSIVE. WE ARE STILL INVESTING TO IMPROVE
PRODUCTIVITY AND WE WILL BE EXPANDING OUR MACHINING OPERATIONS, BOTH OF WHICH
REQUIRE CAPITAL. FINANCING WILL BE OUT OF OUR OWN RESOURCES WHICH THE BOARD
BELIEVES TO BE PRUDENT AND COST EFFECTIVE. WE WILL CONSIDER SPECIAL DIVIDENDS IF
FUNDS APPEAR TO BE RETURNING TO PREVIOUS LEVELS.



AN INTERIM DIVIDEND OF 2.38 PENCE PER SHARE HAS BEEN DECLARED AND WILL BE SENT
TO SHAREHOLDERS ON 9 JANUARY 2004.

B J COOKE. CHAIRMAN.

CASTINGS PLC. LICHFIELD ROAD. BROWNHILLS. WEST MIDLANDS. WS8 6JZ




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