Castings Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.9268062
A strong Balance Sheet and improved prospects ( 6 months booked already ) worth watching on weakness when the spread is only a few pence. By Myunderstanding ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=9268062&action=detail Thu, 09 Feb 2012 10:27:00 GMT Myunderstanding tag:iii.co.uk,2003:tst.9247053
Almost reached my purchase price ! By Myunderstanding ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=9247053&action=detail Fri, 03 Feb 2012 19:19:00 GMT Myunderstanding tag:iii.co.uk,2003:tst.9027069
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.

By Myunderstanding ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=9027069&action=detail Fri, 02 Dec 2011 17:56:00 GMT Myunderstanding tag:iii.co.uk,2003:tst.8997559 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. By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=8997559&action=detail Fri, 25 Nov 2011 18:22:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8435043 23rd June 2011
By Duncan Tift - Deputy Editor, West Midlands
http://bit.ly/itMofm

WALSALL engineering group Castings has seen a strong improvement in annual profits with business improving to pre-recession levels.

The group said turnover had increased 74% from £60.6m for the year ended March 2010 to £105.4m for the year to March 31, 2011, of which 60% was exported. Profits rose from £9.8m to £15.5m in the same period.

Investors reacted positively to the results with the group’s share price rising favourably.

However, the Brownhills group acknowledged the recovery was from a low base, while performance had been impacted by a rapid rise in raw material costs, which accounted for £5.7m of final turnover.

The group said the second half had seen an improving trend and this had continued, to the point where the business is now operating at pre-recession levels and in its machining business, at levels above those in 2008.

Chairman Brian Cooke said trade was so encouraging the company was taking on new staff and re-employing a number of the workers it had made redundant at the onset of decline.

“It is sincerely hoped we can enjoy a period of sustained growth in a somewhat uncertain economic outlook. Our major customers appear to be optimistic about the future and forecast increased volumes,” he said.

“We are now operating at the Castings Brownhills site at previous levels of production and at William Lee we are producing at record levels with the new foundry operating at near capacity levels. Overall we still have capacity available for future growth.”

He said the group had overcome costly logistics problems during the year and was now back to on-time deliveries with stocks under control.

The CNC Speedwell machining business enjoyed a record year with revenue up 151%, which was aided by new investment and new customers.

Looking ahead, Mr Cooke said the group was now at the stage where it was looking for growth and would be expanding into a new warehouse and manufacturing plant once planning permission was granted.

He said this would improve the logistics operation, help stock control and ease traffic congestion in Brownhills. The estimated cost will be £5m and the project is expected to complete by the end of the year.

The group also received a boost with a settlement of £0.86m from the administrators of the UK subsidiaries of the Icelandic banks. Castings has now recovered a total of £2.06m and it hopes further payments will follow.

Mr Cooke said the performance had enabled the group to recommend an increase in the final dividend to 8.04p per share after two years of no increases. The represents a £4.7m return to shareholders.

In outlook, he said: “Despite various adverse reports, our customers are forecasting stable or increased demands and if these forecasts are converted to sales we will enjoy further growth in the company and our investments in both foundry production and machining capacity will improve returns.” By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=8435043&action=detail Thu, 23 Jun 2011 08:47:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8384738 http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=8384738&action=detail Mon, 13 Jun 2011 10:53:00 GMT i love money more than you tag:iii.co.uk,2003:tst.8336350 Wed, 01/06/2011 - 10:15 | Cherry Reynard

John McClure is the manager of the Unicorn UK Income fund. It tops the UK equity income sector over one, three and five years. McClure specialises in small and medium-sized higher-income companies, helping him to boost performance over the long term.

Buy: Castings (CGS)

"This is a manufacturer of parts for the international automotive market. Its two main clients are truckmaker Scania and carmaker Volvo. This means that it's exposed to the fast-growing markets of Russia, Eastern Europe and Brazil. Even US truck sales are showing a huge increase in sales volumes.

"Lots of people think that Castings is all to do with British truck sales, but this is not quite right.

"It has a market capitalisation of around £120 million. Part of our differentiation as an equity income manager is that we are willing to go into smaller companies. We only have around 4% of the fund in the FTSE 100. We find that there are plenty of opportunities within smaller companies.

"People have had this view that dividends are much safer with larger companies, but the problems with the banks, and then BP (BP.), destroyed that idea. Smaller companies dividends are important for the management team and as such, I believe that dividend investors are generally safer in these types of companies.

"As a case in point, over the past couple of years, there have been plenty of smaller companies that have raised their dividends.

"Castings also has a strong balance sheet, with £10 million in cash. This is a key criteria for us - we want companies that can maintain and grow their dividend.

"In Scania's latest set of results, it said one of its biggest problems was sourcing parts. It says that manufacturers can't get sufficient working capital to keep up with their production needs. Castings, which can keep up, is therefore well-placed.

"We also like companies with international earnings. We're very negative on the UK market and still think that with cuts to government spending and taxes rising, it's time to pull the reins in now." By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=8336350&action=detail Thu, 02 Jun 2011 06:24:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.7806311
Looking very good value with a chunky yeild imv.
Nice period of consolidation on the chart as well. By EssentialInvestor ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7806311&action=detail Tue, 15 Feb 2011 15:57:00 GMT EssentialInvestor tag:iii.co.uk,2003:tst.7747866
My own view is that forecasts will be raised following the trading
update, further reducing the earnings multiple.

Net cash increasingly nicely, combined with a pension surplus
adds to the attraction imv.
I would expect over 35 Million in net cash by FY 2012.

The focus will now begin to turn to the dramatic fall in the PER
on the 2011/2012 forecasts.

With upgrades the 2012 PER is likely to be approx 10x,
net the likely 2012 cash balances and this reduces even further.

All imv, dyor as always - looks a strong Buy to me.
By EssentialInvestor ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7747866&action=detail Mon, 07 Feb 2011 15:20:00 GMT EssentialInvestor tag:iii.co.uk,2003:tst.7415315 http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7415315&action=detail Thu, 09 Dec 2010 09:23:00 GMT Hugeloss tag:iii.co.uk,2003:tst.7415142
With spread that variable, it's difficult to value the real performance of the share when there is a price movement. Example, you buy when spread is 7p say at 260/267 the price then goes up by 10p and you think "that's good" but if the spread widens to 18p 260/278 you've gained nothing if you were to sell.

By livebythesword ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7415142&action=detail Thu, 09 Dec 2010 09:07:00 GMT livebythesword tag:iii.co.uk,2003:tst.7414561
I know this is a very daft question, but one that gets asked a lot on these boards... Given the results, what do we think is a fair price for this share now? I'd also like to know why there is such a large spread with this share? Can someone explain in simple terms?

Thanks By Hugeloss ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7414561&action=detail Thu, 09 Dec 2010 08:03:00 GMT Hugeloss tag:iii.co.uk,2003:tst.7401228 http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7401228&action=detail Tue, 07 Dec 2010 12:17:00 GMT EssentialInvestor tag:iii.co.uk,2003:tst.7397059
Looks very undervalued next to the recent sharp sector re-ratings.

I would look for approx £20 Million in net cash by the Interims,
this needs to be factored into the 2011 ratings. By EssentialInvestor ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7397059&action=detail Mon, 06 Dec 2010 21:30:00 GMT EssentialInvestor tag:iii.co.uk,2003:tst.7323713
Excellent performance from CGS - with very much more to come as the highly operationally geared Speedwell division cuts in. By MelchiorHoffman ]]> http://www.iii.co.uk/investment/detail?code=cotn:CGS.L&display=discussion&id=7323713&action=detail Thu, 25 Nov 2010 09:38:00 GMT MelchiorHoffman