Interim Results

Castings PLC
25 November 2004


CASTINGS PLC
RESULTS FOR HALF YEAR ENDED 30 SEPTEMBER 2004

SUMMARISED GROUP PROFIT AND LOSS ACCOUNT


                             SIX MONTHS      SIX MONTHS    
                                ENDED           ENDED       YEAR ENDED
                         30 SEPT 2004    30 SEPT 2003    31 MARCH 2004
                                 £000            £000             £000

NET TURNOVER                   31,508          29,072           61,176
                               ______          ______           ______
OPERATING PROFIT                3,193           3,493            7,676
EXCEPTIONAL ITEM-SALE
OF                                134               -                -
PROPERTY
OTHER INCOME                      478             540            1,017
                                _____           _____           ______
PROFIT BEFORE TAXATION          3,805           4,033            8,693
TAXATION ON PROFITS             1,143           1,210            2,614
                                _____           _____            _____
PROFIT ATTRIBUTABLE TO
SHAREHOLDERS                    2,662           2,823            6,079
DIVIDENDS                       1,065           1,038            3,678
                                _____           _____            _____
RETAINED PROFIT                 1,597           1,785            2,401
                                _____           _____            _____
INTERIM DIVIDEND            2.44PENCE       2.38PENCE        8.43PENCE
DECLARED
-PENCE PER SHARE
EARNINGS PER  BASIC &       6.11PENCE       6.47PENCE       13.93PENCE
SHARE         DILUTED
              
-ADJUSTED                   5.89PENCE               -                -
FOR
EXCEPTIONAL
ITEM

SUMMARISED GROUP BALANCE SHEET

                         30 SEPT 2004    30 SEPT 2003    31 MARCH 2004
                                 £000            £000             £000

TANGIBLE ASSETS                32,303          31,295           31,043
INVESTMENTS                       602             704              704
CURRENT ASSETS
STOCKS                          4,953           3,660            4,527
DEBTORS                        13,149          11,960           13,697
CASH AT BANK                   23,777          22,636           25,393
                               ______          ______           ______
                               41,879          38,256           43,617
CREDITORS - UNDER ONE         (12,032)        (10,417)         (14,855)
YEAR
                               ______          ______           ______
NET CURRENT ASSETS             29,847          27,839           28,762
PROVISIONS FOR
LIABILITIES/CHARGES            (2,020)         (1,319)          (1,374)
                               60,732          58,519           59,135
                               ______          ______           ______

CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL         4,363           4,363            4,363
SHARE PREMIUM                     874             874              874
RESERVES                       55,495          53,282           53,898
                               ______          ______           ______
                               60,732          58,519           59,135
                               ______          ______           ______

SUMMARISED CASH FLOW     30 SEPT 2004    30 SEPT 2003    31 MARCH 2004
STATEMENT                        £000            £000             £000

NET CASH INFLOW FROM
OPERATING                       4,927           1,723            8,213
ACTIVITIES
RETURNS ON INVESTMENTS
AND
SERVICING OF FINANCE:
INTEREST RECEIVED                 478             540            1,017
TAXATION                       (1,057)         (1,363)          (2,311)
CAPITAL EXPENDITURE
AND
FINANCIAL INVESTMENT:
PURCHASE OF TANGIBLE
FIXED                          (4,176)         (1,233)          (3,481)
ASSETS
SALE OF INVESTMENTS               102               -                -
SALE OF TANGIBLE FIXED            750               -               33
ASSETS
EQUITY DIVIDENDS PAID          (2,640)         (2,561)          (3,600)
CASH OUTFLOW BEFORE USE        ______          ______           ______
OF
LIQUID RESOURCES AND           (1,616)         (2,894)            (129)
FINANCING
MANAGEMENT OF LIQUID
RESOURCES:
DECREASE IN SHORT-TERM            767           2,897              942
DEPOSITS
FINANCING:
CHANGE IN ORDINARY                  -               -                -
SHARE CAPITAL
                                _____           _____            _____
INCREASE/(DECREASE)IN            (849)              3              813
CASH
                                _____           _____            _____
RECONCILIATION OF NET
CASH FLOW TO MOVEMENT
IN NET FUNDS
INCREASE/(DECREASE) IN
CASH IN                          (849)              3              813
THE PERIOD
DECREASE IN LIQUID               (767)         (2,897)            (942)
RESOURCES
SALE OF INVESTMENTS              (102)              -                -
                                _____           _____            _____
CHANGE IN NET FUNDS
FROM CASH                      (1,718)         (2,894)            (129)
FLOWS
OPENING NET FUNDS              26,097          26,226           26,226
                               ______          ______           ______
CLOSING NET FUNDS              24,379          23,332           26,097
                               ______          ______           ______
     
1)   THE HALF YEAR RESULTS ARE UNAUDITED.THE ACCOUNTS FOR THE YEAR TO 31 MARCH 
     2004 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 2004 ANNUAL REPORT AND ACCOUNTS.

3)   EARNINGS PER SHARE IS CALCULATED ON THE PROFIT ON ORDINARY ACTIVITIES AFTER
     TAXATION OF £2,662,000 (2003: £2,823,000) AND ON THE WEIGHTED AVERAGE 
     NUMBER OF SHARES IN ISSUE DURING THE PERIOD OF 43,632,068(2003: 
     43,632,068).

4)   THE LAST DAY ON WHICH TRANSFERS CAN BE LODGED WITH THE REGISTRAR FOR
     TRANSFEREES TO RECEIVE THE INTERIM DIVIDEND IS 10 DECEMBER 2004,AND THE 
     INTERIM DIVIDEND WILL BE POSTED ON 7 JANUARY 2005.

COPIES OF THE INTERIM REPORT WILL BE AVAILABLE AT THE REGISTERED OFFICE OF THE
COMPANY AND WILL BE SENT TO SHAREHOLDERS ON 1 DECEMBER 2004.

CHAIRMAN'S STATEMENT

PROFIT BEFORE TAX AND AFTER EXCEPTIONAL ITEM FOR THE SIX MONTHS ENDED 30
SEPTEMBER 2004 WAS £3,805,000 COMPARED WITH £ 4,033,000 IN THE PERIOD TO 30
SEPTEMBER 2003.

REGRETTABLY THE CONTINUAL INCREASE IN RAW MATERIAL PRICES AND ENERGY PRICES HAS
HAD AN ADVERSE EFFECT ON OUR PROFITS.

STEEL SCRAP AND PIG IRON PRICES HAVE MORE THAN DOUBLED OVER THE LAST EIGHTEEN
MONTHS AND INCREASED BY OVER 40% SINCE APRIL 2004. THESE INCREASES COUPLED WITH
A 40% INCREASE IN ELECTRICITY PRICES FROM OCTOBER WILL CONTINUE TO HAVE AN
EFFECT ON OUR PROFITS BECAUSE OF THE DELAY IN RECOVERING THESE UNPARALLELED COST
INCREASES IMPOSED ON THE COMPANY. WE ALSO HAVE A SMALL NUMBER OF FIXED PRICE
CONTRACTS ON WHICH WE WILL NOT RECOVER THESE INCREASES UNTIL NEW CONTRACTS ARE
ESTABLISHED.

WE ARE FORTUNATE IN ENJOYING A FULL ORDER BOOK AND HIGH SCHEDULE DEMANDS, AND SO
IT IS DISAPPOINTING FOR ALL OF US THAT IN THE CURRENT CIRCUMSTANCES WE CANNOT
BENEFIT FROM OUR RECENT INVESTMENTS WITH IMPROVED PROFITS. I AM PLEASED TO
REPORT THAT CNC SPEEDWELL, OUR MACHINING OPERATION, IS LESS AFFECTED BY THESE
COST INCREASES AND IS ENJOYING CONTINUED SUCCESS IN GROWING ITS BUSINESS AND
PROFITS.

THE MEDIA NOW RECOGNISES THAT STEEL, OTHER RAW MATERIALS AND SERVICES HAVE RISEN
IN PRICE TO SUCH AN EXTENT THAT THE EFFECT ON WORLD ECONOMIES IS UNKNOWN.
NEITHER OURSELVES NOR ANYONE ELSE HAVE EXPERIENCED SUCH RAW MATERIAL INFLATION
IN MODERN TIMES.

THANKFULLY YOUR COMPANY IS FINANCIALLY SECURE TO BE ABLE TO OPERATE THROUGH
THESE DIFFICULT TIMES. IT IS IMPOSSIBLE TO FORECAST PROFITS UP OR DOWN DUE TO
STEEL SCRAP PRICE MOVEMENTS WHICH ARE IMPOSED ON US ON A MONTHLY BASIS, WITH A
SINGLE MONTHLY MOVEMENT THAT CAN AFFECT PROFITS BY MORE THAN 10%. WE SHALL
CONTINUE IN OUR ENDEAVOURS TO RECOVER THESE INCREASES.

AN INTERIM DIVIDEND OF 2.44 PENCE PER SHARE HAS BEEN DECLARED AND WILL BE SENT
TO SHAREHOLDERS ON 7 JANUARY 2005.

B J COOKE. CHAIRMAN.
CASTINGS PLC. LICHFIELD ROAD. BROWNHILLS. WEST MIDLANDS. WS8 6JZ


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