(CGS) Castings

I have taken my profit yesterday from this one but may return.

A strong Balance Sheet and improved prospects ( 6 months booked already ) worth watching on weakness when the spread is only a few pence.

Some good trades today over 1M and an increase in the price accordingly. I have not seen this level of activity for a considerable period of time.

Almost reached my purchase price !

This one is a very small market with a 10p spread however......

Stonking figures last week will reassure current investors and attract a few new ones. if existing shareholders purchase a few more on the back of the figures so much the better.

At the end of the day I have one major concern regarding our leader in the hope that Mr. Cooke is not considering retirement at any time in the near future.

Castings reaps the rewards
By Jonas Crosland, 24 November 2011
http://www.investorschronicle.co.uk/2011/11/24/shares/news-and-analysis/castings-reaps-the-rewards-OTu06PFuyT4nUExGETm0wI/article.html


Castings delivered an impressive first-half performance, thanks in part to previous investment in new machining and foundry equipment.
The group saw increased demand from existing customers and also picked up new business, although management warned that some customers have revised their schedules in the light of a reduction in commercial vehicle production. Even so, the group continues to invest in output, and a new warehouse is due to come on stream in January, which should improve stock control and logistics. The foundry operations, which involve the manufacture of iron castings, generated most of group turnover, and revenue there rose from £40.5m a year earlier to £59.4m. There was also good progress at CNC Speedwell, the machining side, where revenue rose 11 per cent to £4.59m. Group finances remain in pretty good shape, too – despite investments of £3.95m, net cash grew by 13 per cent in the period.
Broker Arden Partners has upgraded its full-year forecasts by £1m to give pre-tax profits of £17m and EPS of 28.3p (from £15.5m and 26.7p in 2011).
CASTINGS (CGS)
ORD PRICE: 261p MARKET VALUE: £114m
TOUCH: 260-275p 12-MONTH HIGH: 360p LOW: 250p
DIVIDEND YIELD: 4.2% PE RATIO: 7
NET ASSET VALUE: 193p NET CASH: £16.7m
Half-year to 30 Sep Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2010 44.6 5.12 8.45 2.71
2011 64.0 10.10 17.20 2.91
% change +43 +97 +104 +7
Ex-div: 7 Dec
Payment: 6 Jan
IC VIEW:

Castings is reaping the rewards of continued investment in new plant and machinery and Arden Partners has also upped its full-year dividend forecast to 11.4p a share – meaning an attractive prospective yield of 4.4 per cent. But the economic outlook is beset with uncertainties. So the shares – trading on nine times expected earnings and rated in the middle of the range for engineering companies – look up with events. Fairly priced.