Castings PLC (LON:CGS) confirm it has retained its dividend though noted production remains significantly below pre coronavirus (COVID-19) levels.
Demand dropped by around 80% in the third week of March, the company noted, as OEMs closed their plants.
The iron specialist, in its financial results statement, said that its output had increased off the lows seen in April and a number of its employees have returned off furlough in anticipation of higher demand for products.
Nonetheless, it commented: “production remains significantly below pre-COVID-19 levels and the continued uncertainty regarding the economic recovery post-lockdown means that it remains incredibly difficult to predict future demand and therefore whether this initial recovery in demand will be maintained through the year.”
Despite the uncertainty the company’s directors recommend a final dividend of 11.4p per share for 2019, which takes total dividend for the year to 14.88p – the record date for the payment will be July 17.
Turnover for the twelve months ended March 31 2020 amounted to £139mln, versus £150mln in the preceding year. Cashflow from operating activities was reported at £27.2mln, up from £18.2mln.
Profit before exception items and tax was tallied at £12.7mln, compared to £15.3mln.
The company ended the reporting period with £33.4mln of cash.