StockMarketWire.com - Iron casting and machining group Castings reported a sharp decline in annual profit as revenue was hurt by the pandemic impact and supply chain issues.

For the year ended 31 March, revenue fell to £4.9 million from £12.5 million year-on-year as turnover decreased to £114.7 million from £138.7 million.

The revenue from the foundry operations to external customers decreased by 16.2% to £112.0 million and revenue from the machining operation to external customers decreased by 46.1% during the year to £2.7 million.

Despite a uptick in demand during the second half of the year to pre-COVID output levels, production was 'hampered by more employees needing to self-isolate as UK COVID cases increased around the turn of the calendar year,' the company said.

Full production has returned, though customers were still seeing shortages of semi-conductors and other materials.

'We have also seen large increases in raw material prices, in particular steel scrap and copper, the company said. 'These increases will be reflected in price rises in the new financial year, but the profit for the last three months of the year has been affected by under recovery.'






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