ANNUAL
REPORT
for the year ended
31 March 2026
Stock Code: CGS
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
An Introduction
to Castings P.L.C.
Our continued strength is largely as a result
of our investment in the latest technologies
and manufacturing processes. Maintaining an
ungeared balance sheet provides investment
flexibility, enabling us to fully capitalise on
commercial opportunities to generate strong
returns for the benefit of shareholders,
customers and employees alike.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
01
Contents
Strategic Report
Financial Highlights 02
Chairman’s Statement 03
Group Overview and Strategy 04
Business Model 05
Business and Financial Review 06
Principal Risks and Uncertainties 08
Environmental, Social and Governance 12
Viability Statement 21
S172(1) Statement 22
Corporate Governance
Board of Directors 23
Directors’ Report 24
Corporate Governance 27
Audit and Risk Committee Report 29
Directors’ Remuneration Report
Annual Statement 30
Remuneration Policy 31
Annual Report on Directors’ Remuneration 35
Statement of Directors’ Responsibilities 38
Independent Auditor’s Report 39
Financial Statements
Consolidated Statement of Comprehensive Income 44
Consolidated Balance Sheet 45
Consolidated Cash Flow Statement 46
Consolidated Statement of Changes in Equity 47
Notes to the Consolidated Financial Statements 48
Five Year Financial History 66
Parent Company Balance Sheet 67
Parent Company Statement of Changes in Equity 68
Notes to the Parent Company Financial Statements 69
Company Information
Notice of Meeting 75
Directors, Officers and Advisers 78
Shareholder Information 79
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
02
Financial Highlights
Revenue Profile
Geographical revenue split
United Kingdom 19%
Export 81%
Customer sector profile
Commercial vehicle 71%
Automotive 5%
Other 24%
Group revenue
(£m)
£173m
(2025: £177m)
Foundry sales volume
(tonnes)
41,500
(2025: 41,000)
2025
2026
2024
2023
201
224
177
173
2025
2026
2024
2023
53,100
50,450
41,500
41,000
Profit before tax
(£m)
£10.3m
(2025: £5.6m)
EPS
(basic)
17.36p
(2025: 9.60p)
2025
2026
2024
2023
21.3
5.6
16.7
10.3
2025
2026
2024
2023
38.45
9.60
31.66
17.36
Cash generated from
operating activities (£m)
£25.1m
(2025: £12.3m)
Capital expenditure
(£m)
£20.5m
(2025: £13.2m)
2025
2026
2024
2023
21.6
12.3
22.4
25.1
2025
2026
2024
2023
10.5
13.2
6.2
20.5
Dividend per share (excluding
supplementary dividend)
(pence)
18.40p
(2025: 18.40p)
2025
2026
2024
2023
18.32
18.40
17.35
18.40
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
03
Chairman’s Statement
Overview
Demand from our heavy truck customers,
which make up over 70% of group revenue,
continued at the reduced levels of the
previous year compared to the very strong
volumes seen in the year ended 31 March
2024. The Original Equipment Manufacturers
(‘OEMs’) have suggested that European
heavy truck demand was some 10%
below what they would consider to be the
normalised trend level. Volumes saw small
fluctuations on a quarter-by-quarter basis,
with Q4 being ahead of the prior year, but
the overall picture is of a flat level of demand
compared to the prior year.
The European market, which comprises
nearly three-quarters of our revenue, whilst
remaining resilient, has varied country
by country. Demand from the US is still
being impacted by political and economic
uncertainty.
Turnover decreased by 2% compared with
the previous year and profit from operations
increased by 109%. The despatch weight
increased by 1% compared to the prior year,
albeit at a reduced average selling price
reflecting lower energy surcharges during the
year.
It is pleasing to report that our larger iron
castings (up to 7 tonnes) business in
Scunthorpe, established in June 2024, is
operating profitably. This business represents
an opportunity to supply products and
customers that are new to the group. It also
enables us to offer our existing customers
a broader product range which has been in
evidence during the year.
The cash generated from operations was
strong. The more stable level of demand
enabled us to reduce working capital.
Foundry businesses
Whilst demand marginally increased on a
sales weight basis in the year, the more
consistent level of production requirements
enabled the foundry operation to drive
production efficiencies in the year.
The new foundry production line at our
William Lee site was commissioned towards
the end of the 2025 calendar year and
production commenced in the final quarter of
the financial year. There were some expected
early-stage production inefficiencies, but
the new line adds up to 12,000 tonnes of
additional gross foundry capacity which
represents a 15% increase on the group’s
current capacity. It also enables us to
produce larger castings compared to the
existing production capabilities.
CNC Speedwell
It is pleasing to report another solid
performance in the machining business
against the backdrop of the continuing lower
demand levels.
Investment has been focussed on replacing
older equipment with more efficient machines
in line with our on-going programme.
Outlook
The forward schedules from our customers
currently suggest an increase of 5% - 10%
which includes new work from our wind
energy customers. The heavy-truck element
of these increases is supported by reports
from some of the OEMs of increases to
their European truck forecasts for 2026.
The impact of these increases in schedules
has been offset in the first two months of
the current financial year by a restriction
of around 50% in the power supplied by
Northern Powergrid to the William Lee site.
The transformer concerned has been repaired
and full power was restored on 24 May 2026.
The new foundry line can produce parts with
slightly larger dimensions, thus providing the
opportunity to quote for work that would have
previously been outside of our scope. The
facility in Scunthorpe is allowing the group to
supply significantly larger castings to existing
and new customers.
We will continue to develop opportunities
with existing customers in areas such as
the electrification of lighter trucks and build
relationships in other markets such as wind
energy and agriculture. We remain well
positioned to take advantage of any increases
in the US market as and when they come
through.
Dividend
The directors are recommending the payment
of a final dividend of 14.19 pence per share to
be paid on 25 August 2026 to shareholders
on the register on 24 July 2026. This,
together with the interim dividend, maintains
the total dividend for the year at 18.40 pence
per share.
Directors
I would like to thank the directors, senior
management and all of our employees for
their hard work and commitment during the
year.
A. N. Jones
Chairman
17 June 2026
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
04
Group Overview and Strategy
Group overview
Castings P.L.C. is a market leading iron casting and machining group based in the UK, supplying both the domestic and export markets.
The original foundry operation dates back to 1835 and today the group comprises four trading businesses, employing approximately 1,000
people in the UK.
The group operates three iron foundries – Castings P.L.C. (Brownhills, West Midlands), William Lee Limited (Dronfield, Derbyshire) and Ductile
Castings Limited (Scunthorpe, North Lincolnshire) – together with the CNC Speedwell Limited machining operation which is also based in
Brownhills.
The group produces SG iron, Austempered ductile iron (‘ADI’), SiMo and Ni-resist castings up to 7,000kg in weight. Our three Disamatic
moulding machines and four horizontal green sand moulding machines provide a foundry production capacity of over 82,000 tonnes per annum
(equates to sales capacity of approximately 74,000 tonnes per annum after machining weight is removed).
Our machining operation is invested to support the capacity requirements of the foundry customer base.
Strategy
Our continued strength is largely as a result of our investment in the latest technologies and manufacturing processes. Utilising high volume
equipment in a small and medium batch environment, we are perfectly positioned to supply our commercial vehicle focussed customer base in
Europe and beyond.
The management team is committed to developing the business for the benefit of shareholders, employees and customers.
Our focus is to deliver long-term sustainable revenues and higher than average margins through the following strategic priorities:
Reinvestment for
innovation and
efficiency
We invest in the latest technologies to provide our customers with innovative design
and production offerings and to ensure we maximise production process efficiencies.
We seek to strike a balance in the allocation of strong cash flows between reinvestment
and providing attractive returns for shareholders.
Increase Orignial
Equipment
Manufacturer
(‘OEM’) market
share
By continuing to work collaboratively with customers to develop innovative, cost-
effective solutions, we strive to increase our market share within our existing core
commercial vehicle customer base.
With our investment in warehousing and logistics systems, we are well placed to take
advantage of opportunities to bring additional products to our current OEM customers.
Strength of
balance sheet
The group balance sheet is managed to ensure long-term financial stability and the
ability to make efficient investment decisions to support our strategic objectives.
Investment in
our people
With approximately 1,000 employees in the UK, our workforce is a critical element
to the continued success of the group. We are committed to developing our people
through targeted and balanced training across all levels, whilst maintaining an eye on
the future with apprenticeship programmes in all companies in the group.
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
05
Business Model
Design collaboration
Work closely with customers to
develop cost-effective solutions to
meet their needs.
Use of 3D design simulation and
rapid prototyping.
Our people
Committed, experienced workforce
with a high degree of technical
knowledge.
Foundry production
High-volume moulding equipment
used in a flexible manner (zero time
changeovers) to allow production of
small and medium volume batches.
Ability to produce a diverse range of
parts.
Technical expertise, investment in
flexible automation and efficient
working practices ensure cost of
production is kept low, whilst quality
of output is very high.
Machining capability
Highly invested machine shop
focussed on the prismatic machining
of castings primarily for the group
customer base.
Robotic feeding of machines being
rolled out to aid efficiencies and
quality standards.
Vertical integration of assembly
processes available.
Delivery to customer
Investment in logistics systems
ensures a diverse product range is
managed effectively, meeting strict
customer delivery deadlines.
Experience in managing logistics
both domestically and for the export
market.
INVESTMENT
INVESTMENT
D
E
S
I
G
N
C
O
L
L
A
B
O
R
A
T
I
O
N
O
U
R
P
E
O
P
L
E
F
O
U
N
D
R
Y
P
R
O
D
U
C
T
I
O
N
D
E
L
I
V
E
R
Y
T
O
C
U
S
T
O
M
E
R
C
A
P
A
B
I
L
I
T
I
E
S
M
A
C
H
I
N
I
N
G
VALUE FOR STAKEHOLDERS
Customers
Flexible, agile and
cost-effective
supply of high-
quality and diverse
product range.
Long-term security
of supply.
Employees
Training and
investment
allowing our
employees to
develop in a
challenging
and ambitious
environment.
Shareholders
Maintaining
competitive
position affords
us growth
opportunities to
increase returns to
our shareholders.
Strong cash
generation and
a progressive
dividend policy.
Communities
and
environment
We aim to
contribute
positively to the
communities and
environment in
which we operate.
A recycler of
steel scrap metal
produced in
theUK.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
06
Business and Financial Review
General overview
The underlying demand from our commercial
vehicle customers (approximately 70% of
group revenue) was up 1.2% when compared
to the previous year based on sales weight.
As previously reported at the half-year,
demand for heavy trucks had remained at
lower levels during the year with the OEMs
suggesting that European heavy-truck
demand was 10% below the normalised
trend level.
Demand levels remained relatively flat during
the second half of the year, albeit with a slight
improvement in the final quarter, particularly
in Europe.
The US market continues to be impacted by
tariff uncertainty, which has reduced activity in
that region.
Profitability has improved as the businesses
have right sized to operate at the lower levels
of demand in the year.
The Ductile Castings business in Scunthorpe,
has continued to benefit from the engineering
investment made and some consolidation
in the UK larger casting market. It is very
pleasing to report a profitable second half
to the year for this business, benefiting from
an improved short-term order book from a
growing customer base.
The commissioning of the new foundry
production line at our Dronfield site was
completed in the second half of the year with
production commencing in Q4. Whilst there
have been some early-stage inefficiencies,
the additional capacity and enhanced casting
dimensional capability, means the group is
well positioned for future growth.
Overview of business
segment performance
The segmental revenue and results for
the current and previous years are set out
in note 2 on page 52. An overview of the
performance, position and future prospects of
each segment, and the relevant KPIs, are set
out below.
Key Performance Indicators
The key performance indicators considered
by the group are:
• Segmental revenue;
• Segmental result (profit from operations
before pension cost);
• EPS;
• Cash; and
• Dividends per share.
Foundry operations
As set out previously, customer demand has
continued at the generally lower levels seen
last year. That said, the foundry businesses
experienced a modest increase in sales
output of 1.2% to 41,500 tonnes. After taking
into account the reduction in weight from
machining, this equates to approximately
46,000 tonnes of production.
On a like-for-like basis, excluding Ductile
Castings, the sales volumes were flat at just
under 40,000 tonnes.
External sales revenue reduced by 2.1% to
£171.8 million. Of the total output weight for
the year, excluding Ductile Castings, 66.9%
related to machined castings compared to
67.3% in the previous year. This, along with
lower surcharges, contributed to the fall
in sales revenue despite the slight volume
increase.
The segmental profit of £6.4 million was
up £3.5 million on the prior year. The prior
year result included £1.5 million of one-off
additional electricity costs and a loss of £1.3
million at Ductile Castings.
The result represents a profit margin of 3.3%
on total segmental sales (2025 – 1.5%).
Capital additions of £19.3 million have been
recognised in the foundry businesses during
the year. The net cash figure, excluding
amounts transferred from prepayments, is
£12.6 million, the most significant element of
which was £8.3 million on the new production
line at our William Lee site. In addition, we
have invested in building improvements and
in other non-foundry equipment capacity and
efficiency initiatives.
Machining
The machining business generated total
sales of £30.6 million in the year compared to
£32.1 million in the previous year, a reduction
of 4.7%. Of the total revenue, 4.8% was
generated from external customers compared
to 4.6% in 2025.
The segmental result for the year was a profit
of £2.4 million (2025 – £2.0 million).
We have invested £1.2m million during the
year, which included £0.5 million on more
efficient machining capacity in line with our
machine replacement programme and down
payments on the group’s second solar panel
installation.
Business review and
performance
Revenue
Group revenues decreased by 2.1% to
£173.2 million compared to £177.0 million
reported in 2025, of which 81% was exported
(2025 – 84%).
Revenue from the foundry operations to
external customers decreased by 2.1% to
£171.8 million (2025 – £175.5 million) with
the despatch weight of castings to third-
party customers increasing by 1.2% to
41,500 tonnes (2025 – 41,000 tonnes).
Revenue from the machining operation to
external customers remained consistent at
£1.5 million.
Operating profit and segmental result
The group operating profit for the year was
£10.0 million compared to £4.8 million
reported in 2025, which represents a return
on sales of 5.8% (2025 – 2.7%).
Other operating income
Other operating income of £1.2 million
represents research and development tax
credits. The claims made in the year relate to
both the current period and the two previous
financial years; £0.4 million being attributable
to the current year.
Finance income
The level of finance income decreased to
£0.5 million compared to £0.96 million in
2025, reflecting the lower interest rates
available on deposits during the financial year
and the reduced sums on deposit.
Profit before tax
Profit before tax has increased to
£10.3 million from £5.6 million in the
prior year.
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
07
Taxation
The tax charge of £2.75 million (2025 – £1.45
million) is made up of a current tax credit of
£0.60 million (2025 – charge of £0.47 million)
and a deferred tax charge of £3.35 million
(2025 – £0.98 million).
The current tax credit reflects additional
capital allowances that have been claimed
this year in respect of capital investment in
the prior year, reducing this year’s current
tax charge but increasing the deferred
tax charge. The deferred tax charge also
includes the effect of the significant level
of full-expensing (100%) capital allowance
deductions claimed in the current year.
The effective rate of tax of 26.7% (2025 –
25.8%) is marginally higher than the main rate
of corporation tax of 25% (2025 – 25%).
Earnings per share
Basic earnings per share increased 80.8% to
17.36 pence (2025 – 9.60 pence), reflecting
the 83.0% increase in profit before tax.
Options over 111,005 shares were granted
during the year (2025 – options over 66,787
shares), as set out in note 19. The company
did not purchase any shares during the
year (2025 – nil). The diluted weighted
average number of shares has increased to
43,758,140 resulting in a diluted earnings per
share of 17.25 pence per share (2025 – 9.56
pence per share).
Dividends
The directors are recommending a final
dividend of 14.19 pence per share (2025 –
14.19 pence per share) to be paid on
25 August 2026 to shareholders on the
register on 24 July 2026. This would give
a total ordinary distribution for the year of
18.40 pence per share (2025 – 18.40 pence
per share).
Cash flow
The cash position at 31 March 2026 was
£17.4 million compared to £15.6 million in the
previous year.
The group generated cash from operating
activities of £25.1 million compared to
£12.3 million in 2025. When compared
to 2025, the variance is mainly due to the
significant increase in profit of £4.7 million
and a net working capital inflow.
In the year to 31 March 2026, the most
significant decrease to working capital relates
to a planned inventory reduction of
£9.3 million compared to the start of the year.
Corporation tax payments during the year
totalled £1.5 million (2025 - £1.0 million) and
included additional payments in respect of
a previous year. As noted previously, there
has been a change in the approach to
claiming capital allowances which will result in
repayments in the current financial year.
Capital expenditure during the year amounted
to £20.5 million (2025 – £13.2 million),
including £6.7 million of advanced deposit
payments reclassified from prepayments.
The charge for depreciation was £8.3 million
(2025 – £8.9 million).
The company pays pensions on behalf of
the two final salary pension schemes and
then reclaims these advances from the
schemes (as set out in note 5). During the
year repayments of £3.3 million (2025 –
£4.0 million) were received from the schemes
and advances were paid on behalf of the
schemes of £3.5 million (2025 – £2.3 million).
The outstanding amount of these advances
of £0.7 million will be repaid to the company
during the current financial year.
Dividends paid to shareholders were
£8.0 million in the year (2025 – £11.0 million).
The net cash and cash equivalents movement
for the year was an increase of £1.8 million
(2025 – decrease of £17.0 million).
At 31 March 2026, the total cash and
deposits position was £17.4 million
(2025 – £15.7 million).
Pensions
The pension valuation showed a slight
reduction in the surplus, on an IAS 19 basis,
to £12.0 million compared to £12.2 million in
the previous year.
The majority of the liabilities of the schemes
are covered by an insurance asset that fully
matches, subject to final adjustment of the
bulk annuity pricing, the remaining pension
liabilities of the schemes.
However, there remains the uninsured
element relating to the GMP equalisation
liability (further detail is set out in note 5).
The pension surplus continues not to be
shown on the balance sheet as the company
does not have an unconditional right to
receive returns of contributions or refunds.
Balance sheet
Net assets at 31 March 2026 were
£127.3 million (2025 – £127.4 million). Other
than the total comprehensive income for
the year of £7.5 million (2025 – £4.3 million),
the only movements relate to the dividend
payment of £8.0 million (2025 – £11.0 million),
a share-based payment charge of £0.19
million (2025 – £0.14 million) and a net £0.04
million in respect of share options exercised
during the year (2025 – nil).
Non-current assets have increased to
£80.4 million (2025 – £68.2 million). Property,
plant and equipment has increased by £12.3
million with investment during the year of
£20.5 million being at a higher level than the
depreciation charge of £8.3 million. The group
continues to recognise a right-of-use asset
in respect of the operating lease negotiated
at the time of the Ductile Castings asset
purchase in June 2024, the year end balance
being £1.97 million (2025 – £2.06 million).
Current assets have decreased to
£84.6 million (2025 – £100.1 million) reflecting
the inventory reduction and the reduced
prepayment balances. There is also a
current tax debtor of £2.0 million as set-out
previously.
Total liabilities have decreased to
£37.7 million (2025 – £40.8 million), with the
reduction in trade payables of £4.9 million
being partially offset by the £3.4 million
increase in the deferred tax liability.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
08
Principal Risks and Uncertainties
In common with all trading businesses, the
group is exposed to a variety of risks in the
conduct of its normal business operations.
The directors regularly assess the principal
risks facing the entity. Whilst it is difficult
to completely quantify every material risk
that the group faces, below is a summary
of those risks that the directors believe are
most significant to the group’s business
and could have a material impact on future
performance, causing it to differ materially
from expected or historic achieved results.
Information is also provided as to how the
risks are, where possible, being managed or
mitigated.
The group does not operate a formal internal
audit function; however, risk management is
overseen by senior management and group
risk registers are maintained and regularly
reviewed, alongside factors which may
result in changes to risk assessments or
require additional mitigation measures to be
implemented.
External consultants are used to assess the
design and effectiveness of controls relating
to IT security to provide specialist support to
management in this area.
Key risks arising or increasing in impact are
reviewed at both group and subsidiary board
meetings.
The impact of each risk set out below has
been described as increased, stable or
decreased dependent upon whether the
business environment and group activity has
resulted in a change to the potential impact
of that risk.
Risk description Impact Mitigation and control
Markets and competition
The group’s revenues are dominated by the
commercial vehicle sector which is a cyclical
market exposed to macroeconomic trends.
Global conflicts in the year have resulted in
inflation and interest rates remaining elevated.
These factors are impacting both the underlying
demand for heavy goods vehicles and the
affordability and timing of investment decisions by
fleet operators.
A high level of competition could lead to deflation
in prices. Global sourcing models could also result
in the resourcing of work to low-cost economies.
A number of customers are now sourcing
parts for common base engines and modular
chassis; therefore there is pressure to ensure this
business is generated by the group against global
competition.
Tariff regimes, notably in the USA, have impacted
sourcing decisions and the associated uncertainty
is impacting buyers’ decisions.
Increased
The operational and commercial activity
of the business is driven by customer
demand. Demand has the potential
to change rapidly dependent upon
the significant variable factors in the
macroeconomic environment such
as inflation, interest rate changes or
changing regulatory positions.
Erosion of market share could result in
loss of revenue and profit.
Tariff regimes have increased the risk of
dealing in US markets during the year.
The group’s operations are set up in such a way
as to ensure that variation in demand can be
accommodated and rapidly responded to.
Demand is closely reviewed by senior
management on a constant basis.
Whilst there can be no guarantee that business
will not be lost on price, we are confident that we
can remain competitive.
The group continues to mitigate this risk through
investment in productivity, with a strong focus on
cost and customer value.
The group is actively developing its ability to
understand, respond to and mitigate tariff impacts
where possible, supported by external advisers.
Customer concentration and relationships
The group has relationships with key customers
in the commercial vehicle market which forms the
majority of the customer base.
Stable
The loss of, or deterioration in, any
major customer relationship could
have a material impact on the group’s
results.
We build strong relationships with our customers
to develop products to meet their specific needs.
The ability to supply larger castings (up to
7 tonnes) through Ductile Castings provides an
opportunity to reduce customer concentration.
Product quality and liability
The group’s businesses expose it to certain
product liability risks which, in the event of failure,
could give rise to material financial liabilities.
Stable
Fines or penalties could result in a
loss of revenue, additional costs and
reduced profits.
Whilst it is a policy of the group to endeavour to
limit its financial liability by contract in all long-term
agreements (‘LTAs’), it is not always possible to
secure such limitations.
The group’s customers do require the
maintenance of demanding quality systems to
safeguard against quality-related risks and the
group maintains appropriate external quality
accreditations. The group maintains insurance for
public liability-related claims but does not insure
against the risk of product warranty or recall.
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
09
Risk description Impact Mitigation and control
Technological change
Sustainability and climate change mean that
customers continue to invest in the development
of synthetic fuels, electric and hydrogen powered
vehicles to reduce the emissions produced by the
heavy-duty truck sector.
The initial phase of this is focussed on passenger
cars and smaller, short-range trucks which are
not key markets for the group. However, the
continued development of new technology does
present a medium-term risk to the group as
c. 30% of group revenue arises from the supply
of cast iron powertrain components.
It is important to note that such a change also
presents an opportunity for the group to evolve
its product offering, as has always been the case
over the years.
During the year changing attitudes and regulatory
positions in the USA and EU have deferred
emissions targets and supported extensions
to the lifecycle of diesel engines for heavy duty
commercial vehicles.
Stable
The group continues to work with
key customers producing the next
generation of internal combustion
engine (‘ICE’) commercial vehicles,
whilst monitoring opportunities for the
future.
The strategic focus of the group is a matter
addressed through group board meetings.
Consideration is given to what opportunities might
be available within alternative light-weight metals
such as aluminium, value added opportunities
and also investigating the potential within
hydrogen fuel cells (considered to be the most
likely replacement technology for heavy-duty
trucks).
Customers continue to invest in green iron
solutions, the conditions for which the group
already satisfies, and demonstrate a commitment
to transition to a green iron supply chain by 2030.
Electricity contracts have been fully REGO backed
since October 2022 and from October 2023 our
gas is purchased alongside contractual carbon
offsets. This provides a platform to support
customers’ green iron aspirations.
Foreign exchange
The group is exposed to foreign exchange risk
on both sales and purchases denominated in
currencies other than sterling, being primarily the
euro and US dollar.
Stable
The group is exposed to gains or
losses that could be material to the
group’s financial results and can
increase or decrease how competitive
the group’s pricing is to overseas
markets.
The group’s foreign exchange risk is well-
mitigated through commercial arrangements with
key customers.
Foreign exchange rate risk is sometimes partially
mitigated by using forward foreign exchange
contracts. Such contracts are short term in
nature, matched to contractual cash flows and
non-speculative.
Equipment
The group operates a number of specialist
pieces of equipment, including foundry furnaces,
moulding lines and CNC milling machines which,
due to manufacturing lead times, would be
difficult to replace sufficiently quickly to prevent
major interruption and possible loss of business in
the event of unforeseen failure.
Reduced
A large incident could disrupt business
at the site affected and result in
significant rectification costs or material
asset impairments.
Whilst this risk cannot be entirely mitigated
without the uneconomic duplication of all key
equipment, the plant is maintained to a high
standard and inventories of strategic equipment
spares are maintained.
The foundry facilities at Brownhills and Dronfield
have similar equipment and work can be
transferred from one location to another very
quickly.
Additional flexibility and resilience has been
provided through the investments in a new
foundry based in Dronfield and the ongoing
gradual machine replacement programme at
CNC Speedwell.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
10
Risk description Impact Mitigation and control
Suppliers
The group holds long-standing relationships with
key suppliers and there is a risk that a business
which the group is critically dependent upon for
goods or services could be subject to significant
disruption and that this could materially impact
the operations of the group.
There are specifically high risks of supply
disruption as a result of current geopolitical
instability.
Stable
The risk of a supplier’s business
interruption remains very high due
to the current global business
environment.
Although the group takes care to ensure
alternative sources of supply remain available
for materials or services on which the group’s
businesses are critically dependent, this is not
always possible to guarantee without risk of
short-term business disruption, additional costs
and potential damage to relationships with key
customers.
The group continues to maintain productive
dialogue with key suppliers, working together to
adjust to changes to the business environment.
Commodity and energy pricing
The group is exposed to the risk of price inflation
on raw materials and energy contracts.
The principal metal raw materials used by the
group’s businesses are steel scrap and various
alloys. The most important alloy raw material
inputs are premium graphite, magnesium ferro-
silicon, copper, nickel and molybdenum.
The availability, and therefore price, of steel scrap
has the potential to be a risk to the group as a
result of steel producers transitioning from blast
furnaces to electric arc furnaces.
Increased
Changes to the pricing of the group’s
commodity and energy purchases
could materially impact the financial
performance of the group if no
mitigating actions were taken.
Conflicts in the Middle East and
Ukraine have resulted in additional
risk being priced in to gas and power
markets, with prices becoming more
volatile than we have seen for the past
two years.
Wherever possible, prices and quantities (except
steel) are secured through long-term agreements
with suppliers. In general, the risk of price inflation
of these materials resides with the group’s
customers through price adjustment clauses.
The group has operated flexible power contracts,
purchasing a proportion of its estimated electricity
and gas requirements up to three years ahead of
expected consumption. We continue to review
the most appropriate arrangements moving
forwards.
Information technology, cybersecurity and systems reliability
The group is dependent on its information
technology (‘IT’) systems to operate its business
efficiently, without failure or interruption.
The group continues to invest in IT systems to aid
in the operational performance of the group and
its reporting capabilities.
There are increasing global threats faced by these
systems as a result of sophisticated cyberattacks.
Stable
Significant failures to the IT systems of
the group as a result of external factors
could result in operational disruption
and a negative impact on customer
delivery and reporting capabilities.
We continuously update our systems to mitigate
current threats and align with good industry
practice, including regular back-up schedules
and, where appropriate, hardware duplication.
We regularly discuss these risks at board level to
ensure it remains a key focus area.
Security awareness training is conducted for all
relevant employees, including phishing simulation
exercises. We also conduct external penetration
testing and continue to evaluate additional
security solutions.
Principal Risks and Uncertainties
continued
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
11
Risk description Impact Mitigation and control
Regulatory and legislative compliance
The group must comply with a wide range of
legislative and regulatory requirements including
modern slavery, anti-bribery and anti-competition
legislation, taxation legislation, employment law
and import and export controls.
Stable
Failure to comply with legislation could
lead to substantial financial penalties,
business disruption, diversion of
management time, personal and
corporate liability and loss of reputation.
The group maintains a comprehensive range of
policies, procedures and training programmes
in order to ensure that both management and
relevant employees are informed of legislative
changes and it is clear how the group’s business
is expected to be carried out.
Whistleblowing procedures and an open-
door management style are in place to enable
concerns to be raised and addressed.
Specialist advice is made available to
management when required to ensure that the
group is up to date with changes in regulation and
legislation.
Climate change
The group’s operations are energy intensive by
their nature and therefore result in greenhouse gas
emissions being produced, which either require
reducing or offsetting.
Whilst the group considers that its businesses
provide fundamental components and services
that will prove resilient in a transition towards a net
zero economy, it also recognises policy targets
have been set which may result in changes to the
wider economy and societal attitudes towards
industry.
A fall in investor demand in the industrial sector
could negatively impact share values; it is
important to ensure that the group’s sustainability
strategy is communicated appropriately to
ensure that stakeholders are aware of the group’s
progressive net zero position for scope 1 and 2
emissions, alongside the fact that the group is
already well invested with plant that can support
our customers’ green iron aspirations (such as
electric induction furnaces).
The risk of business disruption due to extreme
weather events may also increase if policy targets
are not met.
Stable
It is expected that green taxes on
energy and the compliance cost
of meeting developing reporting
obligations for our stakeholders will
result in increased energy prices and
administrative expenses.
Opportunities may present themselves
as a result of the group’s early adoption
of green iron principles and strong
sustainability credentials.
The group continues to develop its ESG strategy,
reporting and practices and has appointed a
Head of Sustainability to support this.
The ESG working group continues to monitor
ESG strategy, risks, opportunities and
developments.
The group is evolving its ESG reporting to
communicate the positive story we have to
tell, including our early adherence to green iron
standard which is based on the fundamentals of
electric furnaces, renewable energy and the use
of scrap steel.
The group is now powered by 100% renewable
power and carbon offset gas, with a number of
on-site renewables projects either under way or
under application.
The group operates in locations where the
physical risks of climate change are relatively low
but will continue to engage with and understand
the needs of its stakeholders in this area.
Insurance policies are maintained in relation to the
group’s property, plant and equipment.
People risk
The group’s operations depend upon the
availability of both skilled and unskilled labour to
operate manual equipment and fulfil our strategic
goals.
The nature of our activities and the equipment
operated presents inherent health and safety
risks. Our operations, if not properly managed,
could have a significant impact on individual
employees. Furthermore, poor safety and health
practices could lead to disruption of business,
financial penalties and loss of reputation.
Stable
The inability to attract and retain talent
could result in either a shortage of staff
or a reduction in operating margins.
The group looks to provide safe, stable and
long-term employment at competitive rates of pay.
We invest in people development, including a
structured apprenticeship programme, and utilise
technology and productivity gains to ensure that
our products remain competitively priced.
We have clearly defined health and safety policies
and practices which we regularly review and
modify as circumstances and experiences dictate.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
12
Environmental, Social and Governance
Our strategy
Our approach to ESG and sustainability activities continues to focus on providing safe, long-term employment for the local economy whilst
generating sustainable value for stakeholders (set out on page 5) in a manner that is consistent with our governance obligations.
The group presents this ESG Report for the year to 31 March 2026 taking note of relevant industrial data points suggested in the London Stock
Exchange guidance on ESG reporting. These metrics are used both in the context of wider ESG reporting and to support our Task Force on
Climate-related Financial Disclosures (‘TCFD’) metric reporting. The group’s Sustainability Report is available on our website.
At a glance
Completed initiatives (in last three years) Ongoing initiatives
• Two solar PV systems installed at Brownhills; approval for a third.
• 100% REGO-backed electricity powering the group’s plant and
100% carbon offset gas.
• Energy efficient plant upgrades, including compressors and
chillers, including an investment in energy efficient cooling plant
in collaboration with the BEIS Industrial Energy Transformation
Fund.
• Appointment of Head of Sustainability, formation of sustainability
working group and publication of first Sustainability Report.
• Supported our customers with the implementation of the EU
carbon border adjustment mechanism (‘CBAM’).
• Technical appraisal of sand reclamation equipment to enable
foundry sand to be re-used.
• Continuous review of on and off-site renewables opportunities
• Implementing our approach to the UK carbon border adjustment
mechanism.
• Understanding the impact of IFRS S1 and S2 implementation.
• Development of approach to measuring scope 3 emissions.
• Working with customers and suppliers to report product carbon
footprints.
Environmental
As an energy-intensive industry, we understand that we must evolve in order to meet the needs of our stakeholders. The group continues to
improve its environmental credentials in a commercially viable manner, with numerous success stories to date. We are taking proactive steps to
build on this further, working in collaboration with customers, suppliers, industry bodies and research organisations as set out in our report under
the TCFD framework on pages 16 to 20. The data set out in this section corroborates the strong environmental credentials of the group.
Carbon emissions
We have calculated our carbon footprint according to the World Resources Institute (‘WRI’) and World Business Council for Sustainable
Development (‘WBCSD’) GHG Protocol, which is the internationally recognised standard for corporate carbon reporting. The group’s total CO
2
emission data is based on scope 1 and scope 2. Scope 1 emissions are direct emissions resulting from fuel usage and operation of facilities.
Scope 2 emissions are indirect energy emissions resulting from purchased electricity and other power for own use.
The group collects monthly consumption information from each facility and converts to tonnes of CO
2
e (‘tCO
2
e’) produced using the DEFRA
published national carbon conversion factors.
Energy consumption and intensity
Energy efficiency is a key priority for the group, thus reducing our carbon footprint and creating value for our stakeholders. The increase in MWh
of energy consumption as a proportion of revenue generated is largely due to the reduction in revenue from lower surcharges.
2026 2025 2024
Scope 1
17,047
15,778 18,240
Scope 2 119,222 118,589 140,898
Total energy consumption (MWh) 136,269 134,367 159,138
Total energy intensity (MWh per £000 revenue) 0.787 0.759 0.709
Greenhouse Gas (‘GHG’) emissions (tCO
2
e)
GHG emissions are set out below under both location and market-based methods. The location-based method reflects the average emissions
intensity of the grids on which energy consumption occurs (using mostly grid-average emission factor data), namely the UK grid for the group.
The market-based method reflects emissions from electricity that companies have specifically chosen. It derives emission factors from
contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes
about the energy generation. Market-based emissions are therefore shown net of electricity supplied to the group under OFGEM-certified
renewable contracts and gas supplied on contracts with offset arrangements.
Location-based 2026 2025 2024
Scope 1
3,119
2,886 3,283
Scope 2 20,851 24,303 28,878
Total location-based emissions 23,970 27,189 32,161
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
13
Market-based 2026 2025 2024
Scope 1
—
— 1,687
Scope 2 — — —
Total market-based emissions — — 1,687
GHG intensity (location-based)
2026 2025 2024
Revenue intensity (tCO
2
e per £000 revenue)
Foundry operations (gross revenue)
0.119
0.129 0.120
Machining operations (gross revenue)
0.044
0.050 0.052
Group total (net revenue)
0.138
0.153 0.143
Production intensity (tCO
2
e per production tonne)
Foundry operations
0.490
0.536 0.523
Group total 0.520 0.570 0.557
All operations in the group and therefore all energy consumption is UK only.
For the foundry businesses, the most appropriate metric to measure the intensity of GHG emissions is by production tonne; this has decreased
to 0.490 (2025 – 0.536) tCO
2
e per production tonne. We actively seek to minimise energy use in the group, however the decrease in emission
intensity in 2026 is primarily due to an improvement in the UK Government GHG conversion factor applied to our electricity consumption.
Consumption monitoring and reduction projects started in 2025 are now complete and have supported a number of investments in new
compressors and improvements to working practices.
The machining operation does not have a production weight, therefore, the relevant intensity metric used is emissions per thousand pounds of
machining revenue; emissions have decreased to 0.044 (2025 – 0.050) tCO
2
e per £000. This reflects investments in solar generation,
energy-efficient cooling systems and new compressors made in recent years.
Whilst many foundry competitors still utilise fossil fuels to power furnaces, generating direct emissions, the group’s operations utilise furnaces
and CNC machines which are powered by purchased electricity. This allows the plant and equipment to be fuelled by power purchased from
commercial energy providers supplying power from OFGEM-certified renewable sources.
Waste, water and recycling
The group has made significant investments in scrap metal, plastic and cardboard recycling in recent years. The table below sets out the group’s
waste classifications and water use:
2026 2025 2024
Recycled waste (tonnes)
44
68 76
Non-recycled waste (tonnes)
30,505
28,597 36,355
Hazardous waste (tonnes)
809
867 1,500
Water use (m
3
) 64,938 68,159 71,232
Intensity
Recycled waste (tonnes per thousand tonnes produced) 0.95 1.42 1.32
Non-recycled waste (tonnes per thousand tonnes produced) 661.66 599.26 629.48
Hazardous waste (tonnes per thousand tonnes produced) 17.55 18.16 25.99
Water use (m
3
per tonne produced) 1.409 1.428 1.234
The group has compacted and sold waste bales of plastic and cardboard for several years and continues to seek ways of increasing the
recycling profile. The level of recycled waste per tonne produced has reduced in the year which is disappointing and will continue to be worked
on.
The vast majority of the non-recycled waste relates to sand. The group is seeking viable technical solutions to enable sand re-use in the
production process and the commercial re-use of sand by-products.
Hazardous waste decreased due to an increase in the use of the coolant evaporation plant. Additional coolant recycling facilities were installed in
2025 with a view to further reducing hazardous waste further.
The majority of the water consumed by the group is within the foundry production process, particularly within the sand mills. As a result, it is not
anticipated that the volume of water consumed will reduce significantly other than with variations in production volumes.
There have been no environmental fines in the past three years and NOx, SOx and VOC emissions are not material.
The group’s facilities are ISO 14001 accredited, and our practices and procedures are subject to regular environmental audits by external
consultants.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
14
The group demands that all activities and services comply with applicable laws and regulations.
Social
The foundation of the group’s strength is its people. We strive to support our employees’ health and well-being whilst driving a performance
culture of business understanding and shared values. The group’s policy is to employ people who embody its core values of commitment and
excellence. These values apply to all employees regardless of seniority or position, including directors.
2026 2025 2024
Proportion of workforce joining on temporary (agency) or short-term contracts 61.8% 23.8% 10.2%
Number of apprentices recruited 9 9 10
Staff turnover* 19.5% 18.5% 15.8%
* Staff turnover is calculated by reference to the number of people who have left employment (having worked for at least a three-month period) as a proportion of
the average number of employees for the year.
The group takes pride in being a significant employer in each of the locations in which it operates and has traditionally enjoyed high staff
retention levels and a dedicated, long-term, focussed workforce.
In 2024, one part of the group started using an agency to support the hiring and onboarding process of new employees, which had been an
area of high employee turnover. As a result, the proportion of employees joining on temporary contracts has increased in recent years. In 2026,
all group entities began utilising agency labour to support the on-boarding process for certain roles.
Staff turnover has increased slightly during the year, which is partly driven by lower volumes and, unfortunately, in some cases, a reduction in the
number of employees to reflect a reduced workload. The group continues to invest in employee facilities and our people with a view to offering
career development and improving employee retention levels, supplemented by the use of agency workers where required.
In addition to the structured apprenticeship training, the group provides internal, external and continuous on-the-job training for all staff as
required. As a result of the nature of the training carried out, the group does not collate data concerning the number of hours of training
conducted each year.
The group seeks to communicate with its employees in a structured, open manner, including regular briefings and dissemination of relevant
information on the group and business unit. Employees are informed weekly of production levels and the relative production performance.
Similarly, they are kept informed of any factor affecting the group and the industry generally.
Their involvement in the group’s performance is encouraged by means of a production bonus and at the time of annual wages and salaries
review they are made aware of all economic factors affecting the previous year’s performance and the outlook for the ensuing year.
Equality, diversity and inclusion
Recognising the demands of our customers and our strategy, the group’s diversity and recruitment policy is to recruit the best available people
and to invest in their training and development to enable a high level of retention. We are committed to diversity and equality, judging applications
for employment neither by race, nationality, gender, age, disability, sexual orientation nor political bias. We have made a commitment to consider
applicants from a wide range of educational backgrounds and have an active apprenticeship programme.
The group gives full consideration to employment applications by disabled persons where they can adequately fulfil the requirements of the
position. If necessary, we endeavour to retrain any employee who becomes disabled during their period of employment with the group.
The gender of our staff at 31 March 2026 was as follows:
Male Female
Non-executive directors 3 —
Executive directors 2 —
Senior managers 35 4
Other employees 922 75
962 79
Human rights
The group’s operations are all based in the United Kingdom. Each of the group’s businesses has a core of long-standing, local suppliers and
several key partners based in the European Union. The group has minimal activity with suppliers outside of these areas, therefore due to the
existing regulatory controls in our core areas of geographical activity, human rights is not considered to be a material issue.
Management has a high level of involvement in the day-to-day activities of the business and its suppliers and is trained to identify areas of
concern which may not align with the standards the group demands. The board receives regular updates on corporate responsibility issues
including the UK Modern Slavery Act. We have a Code of Conduct that sets out our policy on compliance with legislation, child labour,
anti-slavery and human trafficking and conditions of employment.
Environmental, Social and Governance
continued
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
15
Health and safety
The board regards the promotion of health and safety measures as a mutual objective for management and employees at all levels. It is our
policy to do all that is practicable to prevent personal injury and damage to property and to protect everyone from foreseeable hazards, including
third parties in so far as they come into contact with the group’s activities.
The group has clearly defined health and safety policies and we operate a system of strict reporting. Regular audits of health and safety at the
group’s manufacturing operations are carried out using independent agencies who make recommendations for improvements to achieve best
practice wherever appropriate.
The group’s health and safety policy is regularly reviewed and modified as circumstances and experiences dictate. The group encourages the
maintenance of consistently high standards and each site is required to develop a safety management system. Health and safety training is a
continual process at each site and therefore is completed on a regular basis and covers all levels within the group.
Lost time incidents 2026 2025 2024
Accidents 137 148 203
Reportable accidents 11 10 8
Near misses 591 429 172
Intensity (per million hours worked)
Accidents 66.6 70.0 81.9
Reportable accidents 5.3 4.7 3.2
Near misses 287.2 203.0 107.2
We have seen a reduction in the total number of accidents and the intensity of accidents, but a small increase in reportable accidents (defined as
injuries to workers which result in them being incapacitated for more than seven consecutive days immediately following the day of the accident)
during the year. As we continue to promote a health and safety focussed agenda across the group, the volume of near misses properly reported
has again increased significantly. A near miss is an incident where an unplanned event occurred, posing a potential threat of injury, damage or
loss, but no harm actually resulted. The increase is partly driven by the inclusion of the machining business and Ductile Castings within near
miss data in 2026, meaning all group companies are now included. Increased reporting allows improvements to be made to prevent accidents
moving forwards and management continues to invest in areas where the accident risks are the greatest.
Governance
Strong and straightforward corporate governance underpins all our business activities. The group’s arrangements are set out in the Corporate
Governance section on pages 27 and 28. There have been no political contributions made in the past three years.
Board diversity
Gender identity
Number
of board
members
Percentage
of the board
Number
of senior
positions on
the board
(CEO, CFO,
SID and
Chair)
Number in
executive
management
Percentage
of executive
management
Men 5 100% 4 2 100%
Women — — — — —
Prefer not to say — — — — —
Ethnic background
White British or other White (including minority-white groups) 5 100% 4 2 100%
Mixed/Multiple Ethnic Groups — — — — —
Asian/Asian British — — — — —
Black/African/Caribbean/Black British — — — — —
Other ethnic group including Arab — — — — —
Not specified/prefer not to say — — — — —
The data in the above table is based on pre-existing internal records.
The executive management are the CEO and CFO who also sit on the board.
All five members of the board are white British males and therefore the targets under UKLR 6.6.6R (9) of 40% of the board being female and at
least one of the four senior positions on the board being occupied by a female and having one board member of minority ethnic origin have not
been met. This reflects an industry-wide issue and is an area that remains under review by the nomination committee.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
16
Responsible business
We are committed to conducting business with the utmost integrity and in accordance with the Bribery Act 2010 and have a clear anti-bribery
and corruption policy in place, which is available on the group website. We communicate our expectations to all employees and have a zero
tolerance policy in respect of improper or criminal behaviours; all directors and employees are encouraged to report any suspicions of bribery.
Non-financial and sustainability information statement
We comply with the non-financial reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006. Information
regarding our business model is set out on page 5; environmental matters on pages 12 to 14; employees, social matters and human rights on
pages 14 and 15; and anti-corruption and anti-bribery matters are set out above.
Task Force on Climate-related Financial Disclosures (‘TCFD’)
The group has prepared disclosures based on TCFD recommendations in accordance with UK Listing Rules 6.6.6R(8) as set out below.
Each section of our TCFD report includes a reference to the relevant recommended TCFD disclosure as follows:
Recommendation
a) Page
Recommendation
b) Page
Recommendation
c) Page
Governance GA 16 GB 16 - -
Strategy SA 18 SB 18 SC 19
Risk Management RA 16 RB 17 RC 17
Metrics and targets MA 20 MB 20 MC 20
Governance
GA) Board oversight:
The Board of Directors has ultimate responsibility for climate-related risks and opportunities. A Sustainability Working Group (‘SWG’) formed of
the CEO, CFO, HSE director and Head of Sustainability has been established and meets quarterly, with any material updates reported through
the bi-annual audit and risk committee report and then, if necessary, escalated to the Castings PLC board.
GB) Management roles:
The CEO holds responsibility for embedding climate strategy and a Head of Sustainability leads day-to-day work. Functional heads each have
responsibility for the implementation of emissions reductions, energy use and resilience to physical and transition risks.
During the year several SWG agenda items that are relevant to climate-related risks and opportunities, mainly with regards to how the business
will allocate capital resources, were escalated and assessed at both audit and risk committee and Castings PLC board level.
• Publication of a group sustainability report for the year to 31 March 2025
• Energy contracts, costs, reliefs and non-commodity charge updates
• Solar PV installations – impact of investment in 1 MW system at CNC Speedwell and future opportunities
• The construction of a new, more energy-efficient foundry in Dronfield
• Evaluation of commercial opportunities in the renewables sector
• Evaluation of commercial opportunities in lightweight materials suitable for electric vehicles
Risk Management
Climate-related risks and opportunities are integrated into the group risk framework. Scenario planning, physical risk assessments, regulatory
horizon scanning and supply-chain mapping are part of risk identification.
RA) Identification and assessment:
Climate risks are identified via periodic risk reviews, through consultation with industry bodies, external expert advice, supply chain mapping
and site climate exposure assessments. Each risk is scored on likelihood, impact (financial and operational), and time horizon. Time horizons
assessed are as follows:
• Short term: 1 to 3 years
• Medium term: 3 to 5 years
• Long term: greater than 5 years
Scenario stress tests are performed where relevant.
Environmental, Social and Governance
continued
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
17
The group has a flat management structure and executive management are heavily involved in the day to day climate related events, decisions
and activities ongoing across the group. This enables fast and effective identification, assessment of and responses to risks as and when they
arise.
Management are also active participants in industry bodies and net zero forums, which provide valuable updates on topics that are likely to
impact our industry and give rise to business risks and opportunities.
RB) Mitigation and adaptation:
Climate related risks are managed by the SWG. It is not considered likely that climate related risk will have a material financial impact on the
businesses cash flows or profitability based upon current reasonably foreseeable scenarios and mitigation strategies that are in place, which
include:
• A green iron strategy, providing our customers with a market leading sustainable product
• Investment in REGO backed power and carbon offset gas
• Investments in on site renewables
• Fixing our power prices for future periods using a flexible power contract
• Price escalators in place with our customers for raw materials and power costs
• Use of recycled steel and circular resource flows embedded within the group
• Continuous investment in more energy efficient technologies
• Diversification of the markets we serve, including investing in Ductile Castings to support growth
• Maintaining a flexible local core supply chain in the UK to support resilience
• Insurance coverage and business continuity planning to cover extreme events
RC) Integration into risk management:
Identification
Climate related risks are identified through horizon scanning, scenario analysis, and monitoring of regulatory developments, including UK Climate
related Financial Disclosure requirements.
Physical risks such as flooding, extreme heat, and supply chain disruption are systematically captured within the corporate risk register.
Oversight of risk identification is exercised at Board level, ensuring climate risks are considered alongside financial, operational, and compliance
risks.
Assessment
Transition risks (e.g., emissions regulation, energy market volatility) are evaluated for potential impact on production costs and profitability.
Physical risks are assessed through site specific vulnerability studies and stress testing.
Climate risk assessment is embedded into capital allocation decisions, ensuring investments are evaluated for both financial return and resilience
under different climate scenarios.
Management
Mitigation measures include energy efficiency programmes, adoption of low carbon technologies, and diversification of supply chains.
Governance structures assign accountability for climate risk management to the SWG, with bi-annual reporting to the audit and risk committee.
Reporting to the Castings PLC board takes place when agenda items are considered of an appropriate level of materiality on a quantitative or
qualitative basis by the SWG and audit and risk committee.
Embedding climate related risks into overall risk management demonstrates the group’s commitment to long term value creation and regulatory
compliance.
Strategic risks & opportunities under different scenarios
The group can provide casting, machining, assembly and ancillary services with a low level of transport (and therefore GHG emissions emitted)
between group sites and with manufacturing powered by electricity generated from renewable sources and carbon offset gas. Management
believes this places the business in a strong position to support its customers’ and stakeholders’ environmental aspirations, particularly when
compared to coal-powered or geographically disparate competitors.
Recycling, energy-efficient plant solutions and waste management continue to be areas of focus with regard to reducing the group’s carbon
footprint and landfill waste. Through its participation in industry bodies the group supports several research projects to find commercial uses for
remaining waste materials, such as sand.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
18
The group operates all production facilities using REGO-backed power and carbon offset gas contracts, which alongside our use of electric
induction furnaces and 100% scrap steel makes us a strong supplier to those customers seeking a green iron-based strategy.
There is an opportunity for the group to utilise its considerable production experience, financial resource and relationships as a supplier to the
established commercial vehicle markets to enter new or additional product categories as they develop at scale. In the nearer term, this means
supplying parts to the most fuel-efficient combustion engines ever produced by OEMs for HGVs as well as expanding our supply of parts to
offshore power-generation customers.
Further opportunities are expected to arise for supply into the smaller end of the truck sector which is naturally more suited to the battery electric
vehicle (‘BEV’) technology. This is not a market that the group has served to any great extent previously.
As BEV and hydrogen fuel cell powertrain technologies evolve, there is a risk that the market for the group’s cast iron internal combustion engine
(‘ICE’) products could reduce, albeit the application of such technologies to the group’s core heavy truck market is expected to be longer term.
This would directly impact approximately one-third of group revenue, but opportunities will exist for the group within the new product ranges.
Climate scenarios used
We have assessed three scenarios:
Scenario A: Below 2 °C / Net Zero Transition (“Paris Aligned”) – strong regulatory action, carbon pricing increasing, energy supply
decarbonised, technology shifts, customer demand heavily towards lower carbon solutions.
Scenario B: 2 - 3 °C Pathway (“Moderate Transition / Delayed Action”) – slower regulatory progress, some carbon pricing, incremental
technology uptake; physical risks moderate.
Scenario C: >3 °C / Hot House World – minimal transition; high physical risks (extreme weather, supply chain disruptions, heat stress),
regulatory action is weak or delayed.
SA and B) Climate related risks and opportunities impacting our strategy
Transition
risks Description Risks and opportunities
Financial
impact Scenario
Time
horizon
Policy and
legal risk
Potential for changes to
environmental standards /
carbon tax
There is a risk international HGV
manufacturers will cease to manufacture
in the UK / EU due to the level and cost of
regulation and energy taxes.
The group is well placed to provide
a green iron product, which offers
customers a low carbon cost compared
to the global market under the EU CBAM
regulation.
High A All
Technology
risk
EV transition in the HGV
market
The heavy goods sector could cease
to operate using diesel powertrains if
suitable alternative technology emerges.
Opportunities exist in alternative products
and materials for the group to expand its
product portfolio
High A, B Medium to
long
Market risk Change in demand for our
product
Gross margin could reduce if demand
for certain products (eg powertrain
parts) reduced or increase if demand for
products (e.g. components for renewable
energy generation) increased.
High A, B All
Reputation
risk
How our response can
impact perception of the
business
Stakeholders could either engage further
or seek to avoid working with the group
depending on the response to climate-
related issues.
Medium A, B, C Short
Environmental, Social and Governance
continued
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
19
Physical
risks Description Risks and opportunities
Financial impact,
scenario and time
horizon
Acute risk Event-driven risks, such as
flooding, heatwave, droughts
or storms.
The main physical risk to the group’s operations is
considered to be flooding, which could result in lost
production and increases to insurance premiums.
The UK government flood risk assessment tool
categorises all sites as low or very low risk for all types of
flooding (being surface water, rivers and sea, groundwater
and reservoirs) under all available timescales extending as
far as 2069.
Heatwaves could result in unpleasant or unsafe working
conditions, particularly within the plant. Investments have
been made in cooling equipment to reduce the ambient
temperatures and there is potential for further investment
to be made to ensure working conditions remain safe
going forwards.
The availability of a water supply is fundamental to both
workplace attendance and the manufacturing process.
A lack of water supply during drought conditions would
result in business disruption. The location of our sites in
the UK is an advantage here and reduces the risk of water
outages.
It is expected that under all scenarios storms, flooding
and heatwaves will result in a degree of disruption,
maintenance costs and capital investment being incurred.
However, based upon the relatively moderate climate in
the UK the financial impact is not expected to be material
to the business financially or operationally.
A hot house world scenario would have the largest impact
on the physical risks affecting the group and insurance
premiums would be likely to increase.
It is not considered that
acute or chronic physical
risks are likely to materially
affect the group under the
considered scenarios and
time horizons.
Chronic risk Risk of long term shifts in
climate patterns
The financial impact of climate related risks and opportunities is currently assessed on a qualitative basis, relying upon the judgement of
management. Detailed quantitative scenario analysis has not been performed due to the cost and complexity of completing such analysis, which
management consider would be likely to result in materially the same risk response as is currently in operation.
SC) Resilience of the company’s strategy, taking into consideration different climate-related scenarios
The physical risks of scenario A, B or C are not considered material at this point. The most significant influencing factors upon the group strategy
are the regulatory environment and pace of technological development regarding electrification of the heavy truck industry.
Approximately one-third of the group’s turnover arises from the sale of parts which are used by our customers to produce ICEs for heavy trucks.
This revenue would be at risk in the event of a sudden technological or regulatory development which rendered the ICE obsolete. This risk is
short, medium and long term with the financial implication being higher over the long term if no product diversification took place within our
revenue streams ahead of any technological change.
This scenario is considered unlikely to develop quickly given the reliance of the human population on a well-functioning transport and logistics
infrastructure to transport essential items such as food. In addition, any technology break-through would need significant infrastructure changes
to support the charging or re-fuelling of an alternative powertrain for heavy trucks. At present the group is working with OEMs on a variety of
project opportunities, whilst research into the technical direction of the market (in response to climate-related scenarios) continues, including:
• Supplying parts which make current large diesel engines significantly more efficient.
• Providing additional on-site ancillary services to reduce unnecessary transportation of parts.
• Making our own product using renewable energy.
• Collaborating to supply parts and potential capacity for the manufacture of electric trucks.
• Investing in our capacity to make larger parts in diverse markets
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
20
Whilst we are working with our key customers to facilitate movement away from ICEs and are active commercially in this area, our key
customers continue to invest significantly in new, more efficient diesel engine production facilities and therefore we continue to see the phase out
of diesel engines in the heavy truck market as a long term issue in our scenario planning.
In June 2024 the group acquired certain assets to form Ductile Castings, diversifying the groups customer base and product offering outside of
the commercial vehicle market, mainly in power generation and infrastructure.
At present, we continue to focus on the short to medium term opportunities the transition to a zero-emission market can provide, whilst utilising
our engineering expertise and customer relationships to develop our long term strategy alongside our customer base.
The Group has not published a formal net zero transition plan. The Group currently reports a net zero, market based position for Scope 1 and
Scope 2 emissions, achieved through 100% renewable electricity consumption and the offsetting of gas usage. As a result, there is limited
scope for further material reductions in Scope 1 and Scope 2 emissions through operational measures at this time.
Given this position, the Group does not consider that publishing a traditional transition plan focused on Scope 1 and Scope 2 emissions would
be meaningful at present. The Group’s focus is on maintaining this position and on improving the measurement of Scope 3 emissions, which will
inform any future target setting or transition planning as data quality and coverage improve.
This initial consideration of resilience has been set out by the group and consideration is being given to more detailed scenario analysis.
Impact on the group’s strategy and financial planning
It is expected that this transition away from ICEs will be a medium to long-term, gradual strategic issue and therefore investment will be
appropriately managed to avoid redundant undepreciated plant that may become subject to impairment. Structural parts to heavy goods
vehicles will potentially continue to be made from cast iron due to the material’s favourable characteristics.
The group’s plant is depreciated over a maximum life of 15 years and is not considered at risk of impairment because of a reduction in cast iron
business under currently reasonably foreseeable circumstances.
MA, B and C) Metrics and targets
Metrics have been reported within the relevant sections of the group ESG Report on pages 12 to 14.
The group reported nil scope 1 and 2 emissions on a market basis for the first time in 2025. Reaching this goal was a target for the group and
sets a high bar to maintain.
It is a target of the group to continue to operate on this basis moving forwards, utilising a combination of operational efficiency improvements, on
site renewables, REGOs and carbon offsets.
The group is giving consideration to both measurement of and targets related to our scope 3 emissions; but has not yet set targets in this
regard. This is because we consider it prudent to have fully measured and understood our scope 3 emissions before setting realistic targets to
reduce them.
Following the success of our first investment in solar PV in 2024, the group is targeting additional capacity investments in the short to medium
term subject to receiving approvals for grid connection requests.
Consideration is being given to additional targets that might be used by the group to manage climate-related risks and opportunities and
performance against those targets.
Environmental, Social and Governance
continued
Strategic Report
Castings P.L.C. Annual Report for the year ended 31 March 2026
21
Viability Statement
In conducting the review of the group’s long-term prospects, the directors considered economic and market conditions in conjunction with the
strategy and the principal risks facing the group (as set out in the Strategic Report on pages 2 to 22). This assessment considered the impact of
the principal risks on the business model and on future performance, liquidity and solvency and was mindful of the limited forward visibility that
the group has in respect of its major market of commercial vehicles.
In preparing this statement of viability, the directors have considered the prospects of the group over the three year period immediately following
the financial year ended 31 March 2026. This longer-term assessment process supports the board’s statements on both viability, as set out
below, and going concern (on page 28).
A three year period was determined as the most appropriate for the purpose of concluding on longer-term viability, given the limited forward
visibility of the group.
The directors’ viability assessment included a review of three year profit and cash flow estimates, alongside the group’s current position, and
a review of the sensitivity analysis performed on the three year estimate whereby the principal risks, particularly those related to markets and
customers, were applied to the plan. The assessment was based on current demand schedules from customers and assumed that these levels,
along with average selling prices and costs, remain consistent. The group’s recent record of cash conversion was used to estimate the cash
generation in the period under review.
A severe but plausible downside scenario was also prepared and assumed a 30% reduction in demand which would cover the loss of the
group’s most significant customer. Furthermore, such a reduction is also in line with the approximate revenue loss in the event that environmental
legislation changes or a technological breakthrough rendered the internal combustion engine obsolete.
In making this viability statement, the directors considered the mitigating actions that would be taken by the group in the event that the principal
risks of the company become realised. The directors also took into consideration the group’s strong financial position at 31 March 2026, with
freehold land and buildings, cash and deposits of £17.4 million, no debt and a history of strong cash generation.
The directors have assessed the viability of the group and, based on the procedures outlined above in addition to activities undertaken by the
board in its normal course of business, confirm that they have a reasonable expectation that the group will be able to continue in operation and
meet its liabilities as they fall due over the period to 31 March 2029.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
22
S172(1) Statement
The following disclosures describe how the
directors have had regard to the matters set
out in section 172(1)(a) to (f), relating to the
directors’ duty to promote the success of the
company, and forms the directors’ statement
required under section 414CZA(1) of the
Companies Act 2006.
Stakeholder engagement
Our success depends on the relationships
we have with the people, communities
and organisations that have an interest in
our business and may be impacted by the
decisions we take. The key stakeholders are
set out in the business model on page 5 and
the manner of our engagement with them is
described below.
Customers
Dedicated sales, technical and production
teams engage with customers to foster a
collaborative working relationship for the long
term. Investment in the latest production
technologies ensures we provide the quality,
efficiency and on-time delivery they require.
Employees
An important part of the culture of the group
is our open-door style of management. All
senior personnel are visible throughout the
business on a daily basis engaging with the
workforce across all levels; it is important
to both the company and our employees
that they have that chance to share their
opinions. In addition, regular function-specific
committee meetings take place as well as
regular information sharing to the whole
workforce.
Shareholders
We engage with our shareholders through a
number of channels which include the Annual
Report, AGM, investor site visits, one-to-
one meetings and telephone conversations.
They are interested in the strategy and its
execution, generating strong returns and
maintaining financial discipline. We report and
discuss these areas on a regular basis.
Communities and environment
As a significant employer for each area
where we are based, we support local
employment and apprenticeship schemes.
We seek to engage and collaborate with
local educational institutes where possible
and increase the overall visibility of the group.
The local communities are keen to ensure
we are supporting and investing in local
jobs, operating safely and ethically as well
as reducing our environmental impact. We
provide direct employment to approximately
1,000 people, invest in our facilities to provide
a safe workplace and consider opportunities
to ensure a more sustainable strategy.
Suppliers
We seek to improve our business
relationships with our key suppliers to protect
the operations of the company. We engage
with suppliers to ensure they comply with our
code of conduct to maintain high standards
of supply.
Principal decisions taken
during the year
Formation of Sustainability Working
Group
As part of an assessment of ESG activities
in the group, the board decided to establish
a Sustaintability Working Group (‘SWG’) to
oversee the group’s ESG priorities.
The Strategic Report was approved by the
board and signed on its behalf by
A. Vicary
Chief Executive Officer
17 June 2026
Castings P.L.C. Annual Report for the year ended 31 March 2026
23
Corporate Governance
Board of Directors
Executive directors
Adam Vicary
Chief Executive Officer
Having obtained a degree in metallurgy and
a business masters, Adam has worked in
the foundry industry for all of his career and
joined the company in September 2010 as
joint managing director. He was appointed to
the main board in April 2012, becoming chief
executive on 31 March 2017.
Steve Mant
Finance Director
Steve is a fellow of the ICAEW and joined the
company in June 2010. He was appointed
company secretary and finance director on 1
November 2010. Prior to joining the company
he had been working for BDO specialising
in manufacturing, international and listed
companies.
Non-executive directors
Alec Jones
Independent Non-executive Chairman
Alec was appointed a director in April 2012,
becoming chairman on 1 January 2023, and
is an independent director. He was a partner
in PricewaterhouseCoopers for 27 years until
his retirement in 2010.
Mark Smith
Senior Independent Non-executive
Director
Mark was appointed a director on
16 November 2022 and is an
independent director. He was a partner in
PricewaterhouseCoopers for 24 years until
his retirement in 2021. Mark is a director of
the Birmingham Repertory Theatre Limited
and is a member of the finance, audit and
risk committee. He was High Sheriff of
the County of West Midlands for the year
ended 31 March 2026. Mark is chairman of
the audit and risk committee and is also a
member of the remuneration and nomination
committees.
Stephen Harrison
Independent Non-executive Director
Stephen was appointed a director on
26 September 2024 and is an independent
director. Stephen is currently chairman of
Tungsten West plc, the AIM listed mining
company. He was chairman of Epwin
Group plc, the AIM-listed manufacturer
of energy efficient and low maintenance
building products until October 2025. He
was also chief executive officer at Forterra
plc, a London Stock Exchange Main Market
listed supplier of building materials to the
UK’s construction sector until May 2023.
Stephen has over 20 years’ experience in
the construction materials sector. Stephen is
chairman of the remuneration and nomination
committees and is a member of the audit and
risk committee.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
24
Castings P.L.C.
Directors’ Report
The directors submit the Annual
Report and audited consolidated
financial statements of Castings
P.L.C. for the year ended
31 March 2026.
Strategic Report
The Strategic Report, which contains a review
of the group’s business, a description of the
principal risks and uncertainties facing the
group and commentary on the likely future
developments, is set out on pages 2 to 22.
Financial results and
dividend
The profit for the year after taxation was
£7,547,000 (2025 – £4,173,000), full details
of which are set out in the consolidated
statement of comprehensive income on
page 44.
An interim dividend of 4.21 pence per share
was paid in January 2026 in respect of the
year ended 31 March 2026.
The directors recommend a final dividend of
14.19 pence per share payable on
25 August 2026 to shareholders on the
register on 24 July 2026, making a total
ordinary distribution of 18.40 pence for the
year.
Share capital
The company’s capital consists of
43,632,068 (2025 – 43,632,068) ordinary
shares of 10 pence each with voting rights.
There are no restrictions on voting rights.
There are no restrictions on the transfer of
shares in the company and in particular there
are no limitations on the holding of shares
and no requirements to obtain the approval of
the company, or of other shareholders, for a
transfer of shares.
Beneficial owners of shares who have been
nominated by the registered holder of those
shares to receive information rights under
Section 146 of the Companies Act 2006 are
required to direct all communications to the
registered holder of their shares rather than
to the company’s registrar, MUFG Corporate
Markets (UK) Limited, or to the company
directly.
Subject to legislation and to any resolution of the company in general meeting, all unissued
shares are at the disposal of the board who may allot, grant options over or otherwise dispose
of them to such persons, on such terms and at such times as it may think fit.
The company is authorised to purchase its own shares; no shares were purchased during the
year (2025 – nil).
Directors
The directors of the company are listed on page 23 and their interests in the ordinary share
capital at the beginning and end of the year is set out on page 34.
In accordance with Provision 18 of the UK Corporate Governance Code, all directors are
subject to annual re-election. The board considers that the performance of those directors
proposed for re-election continues to be effective, that they remain independent in judgement
and that they demonstrate a strong commitment to their role.
The unexpired period of the contracts of service for A. Vicary and S. J. Mant is one year.
A. N. Jones, M. L. Smith and S. R. Harrison do not have contracts of service.
The company has made qualifying third-party indemnity provisions for the benefit of its
directors which were in force during the year and exist at the date of this report.
There are no agreements between the company and its directors or employees providing for
compensation for loss of office or employment that occurs because of a takeover bid.
The number of directors is not subject to any maximum but shall not be less than two.
The company may by ordinary resolution elect any person to be a director and the board
has the power to appoint any person to be a director, but any director so appointed will be
subject to election at the next Annual General Meeting.
The business of the company is managed by the board, who may exercise all such powers of
the company as are not by legislation or by the company’s Articles required to be exercised in
general meeting. The board may make such arrangements as it thinks fit for the management
and transaction of the company’s affairs and may for that purpose appoint local boards,
managers and agents and delegate to them any of the powers of the board (other than the
power to borrow and make calls on shares) with power to sub-delegate.
Other than the directors’ service contracts, the directors have no interests in any contract of
the business.
Substantial shareholdings
As at 17 June 2026, the company had been notified, in accordance with DTR Rule 5, of the
following disclosable interests, including directors, in its voting rights:
Number %
Threadneedle Asset Management Limited 7,409,030 17.0
Aberforth Partners’ Clients 6,656,628 15.3
Ruffer LLP 3,870,330 8.9
Janus Henderson Group PLC 2,887,757 6.6
B. J. Cooke 2,044,158 4.7
NR Holdings Limited 1,800,000 4.1
Castings P.L.C. Annual Report for the year ended 31 March 2026
25
Corporate Governance
Special business
There will be the following items of special
business at the Annual General Meeting.
Directors’ authority to allot shares
Approval will be sought to renew the
authority given to the directors to allot
shares in the company in accordance with
section 551 of the Companies Act 2006.
The present authority was granted on 21
August 2025 and under the Companies Act
must be renewed at least every five years.
The authority to be renewed on 20 August
2026 would therefore expire on 21 August
2031, but will be put to annual shareholder
approval.
Authority will also be sought from
shareholders to allow the directors to allot
equity securities for cash as if section 561
of the Act (which gives shareholders certain
pre-emption rights on the issue of shares)
did not apply. Such allotments being up to
a maximum nominal amount of £218,160,
being approximately 5% of the current issued
share capital. The renewed authority would
expire on 20 August 2026.
In any three year period no more than 7.5%
of the issued share capital will be issued on a
pre-emptive basis.
The proposed resolutions are set out as items
11 and 12 in the Notice of Meeting.
Authority to purchase own shares
At the Annual General Meeting in 2025, the
board was given authority to purchase and
cancel up to 4,358,844 of its own shares,
representing 9.99% of the company’s existing
shares, through market purchases on The
London Stock Exchange. The maximum price
to be paid on any exercise of the authority
was restricted to 105% of the average of the
middle market quotation for the shares for the
five dealing days immediately preceding the
day of a purchase. The minimum price which
may be paid for each share is 10 pence.
The current authority to make market
purchases expires at the forthcoming Annual
General Meeting. The directors are now
seeking the approval of shareholders for
the renewal of this authority upon the same
terms, namely to allow the company to
purchase and cancel up to 4,358,844 of its
own shares, representing 9.99% of its issued
share capital at 31 March 2026.
The authority is sought by way of a special
resolution, details of which are also included
in the Notice of Meeting as item 13.
This authority will only be exercised if the
directors, in the light of market conditions
prevailing at the time, expect it to result in
an increase in future earnings per share, and
if it is in the best interests of shareholders
generally.
Stakeholder engagement
The key stakeholders are set out in the
Business Model on page 5. The engagement
and decisions taken during the year are
set out in the Section 172(1) statement on
page 22.
Employee involvement
Employees are informed weekly of
production levels and the relative production
performance. Similarly, they are kept informed
of any factor affecting the group and the
industry generally.
Their involvement in the group’s performance
is encouraged by means of a production
bonus and at the time of annual wages and
salaries review, they are made aware of
all economic factors affecting the previous
year’s performance and the outlook for the
ensuing year.
Further details of employee involvement
and the group’s policy on the employment
of disabled persons are given under the
Environmental, Social and Governance
section on pages 12 to 20 and the S172(1)
statement on page 22.
Health and safety
As required by legislation, the group’s
policy for securing the health, safety and
welfare at work of all employees has been
brought to their notice. In addition, safety
committees hold regular meetings. Further
details of health and safety are given under
the Environmental, Social and Governance
section on pages 12 to 20.
Financial instruments
Details of the use of financial instruments
by the group are contained in note 22 in
the notes to the consolidated financial
statements.
Research and development
The group continues to invest significantly
in future technologies and to improve and
enhance production processes. Activities and
likely future developments for the business
are described in the Strategic Report on
pages 2 to 22.
Articles of Association
Any amendments to the Articles of
Association have to be adopted by the
members by a special resolution in general
meeting. The current articles were adopted in
August 2011.
Post balance sheet events
There were no reportable subsequent events
following the balance sheet date.
Independent auditor
The auditor, Forvis Mazars LLP, have
indicated their willingness to continue
in office. A resolution proposing their
reappointment as auditor of the company and
authorising the directors to determine their
remuneration will be submitted at the Annual
General Meeting.
Each of the persons who are directors at the
date when this report was approved confirms
that so far as each of the directors is aware,
there is no relevant audit information of which
the group’s auditor is unaware, and each of
the directors has taken all steps that he ought
to have taken as a director to make himself
aware of any relevant audit information and
to establish that the auditor is aware of
that information.
Significant agreements
There are no significant agreements to which
the company is party that take effect, alter
or terminate upon a change of control of the
company following a takeover bid.
Corporate governance
Details of the group’s corporate governance
policies are dealt with on pages 27 and 28.
Greenhouse gas emissions
Details of the group’s greenhouse gas
emissions are set out on pages 12 and 13.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
26
Castings P.L.C.
Cautionary statement
Under the Companies Act, a company’s
Strategic Report and Directors’ Report
are required, among other matters, to
contain a fair review by the directors of the
group’s business through a balanced and
comprehensive analysis of the development
and performance of the business of the group
and the position of the group at the year end,
consistent with the size and complexity of the
business.
The Directors’ Report set out above, including
the Chairman’s Statement, the Principal
Risks and Uncertainties and Environmental,
Social and Governance section incorporated
into it by reference (together, the Directors’
Report), has been prepared solely to provide
additional information to shareholders to
assess the company’s strategies and the
potential for those strategies to succeed. The
Directors’ Report should not be relied upon
by any other party or for any other purpose.
The Directors’ Report (as defined) contains
certain forward-looking statements. These
statements are made by the directors in good
faith based on the information available to
them up to the time of their approval of this
report and such statements should be treated
with caution due to the inherent uncertainties,
including both economic and business
risk factors, underlying any such forward-
looking information.
Approval of Directors’
Report and Responsibility
Statement
Each of the persons who is a director at the
date of approval of this report confirms that to
the best of his knowledge:
a. each of the group and parent company
financial statements, prepared in
accordance with International Financial
Reporting Standards in accordance with
the Companies Act 2006 and UK Financial
Reporting Standards respectively, gives a
true and fair view of the assets, liabilities,
financial position and the profit or loss of
the issuer and the undertakings included
in the consolidation taken as a whole; and
b. the Chairman’s Statement, Strategic
Report and Directors’ Report include
a fair review of the development and
performance of the business and
the position of the company and the
undertakings included in the consolidation
taken as a whole, together with a
description of the principal risks and
uncertainties they face.
The directors consider that the Annual
Report and financial statements, taken as a
whole, is fair, balanced and understandable
and provides the information necessary for
shareholders to assess the company’s
and group’s performance, business model
and strategy.
On behalf of the board
A. N. Jones
Chairman
17 June 2026
Directors’ Report
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
27
Corporate Governance
General
Castings P.L.C. recognises the importance
of high standards of corporate governance.
The board has considered the principles
and provisions of the 2024 UK Corporate
Governance Code and will continue to adhere
to them where it is in the interests of the
business, and of the shareholders, to do so.
The manner in which the board provides
leadership of the company within a
framework of prudent and effective controls is
set out in this section.
Board of directors
The board meets regularly to monitor the
current state of business and to determine
its future strategic direction.
During the financial year, the board comprised
two executive directors and four non-
executive directors, reducing to three on
21 August 2025. The non-executive directors
are independent of executive management
and none of the non-executive directors
participate in share option or other executive
remuneration schemes, nor do they qualify for
pension benefits.
Notwithstanding the length of service (14
years as a director, of which 3 as chairman),
the board considers that the chairman,
A. N. Jones, remains independent and that
the skill and experience he brings and his
overall contribution to the board remains of
significant value to the group.
The directors maintain their knowledge
through a combination of technical and
market bulletins and attendance at seminars.
The company secretary has responsibility for
bringing new regulatory developments to the
attention of the board.
Board committees
The principal committees established by the
directors are:
Audit and risk committee
Further details are contained within the Audit
and Risk Committee Report on page 29.
Remuneration committee
Further details are set out in the Directors’
Remuneration Report on page 30.
Nomination committee
The nomination committee is chaired by
S. R. Harrison with M. L. Smith also being
a member. The group chairman, whilst not
a formal member of the committee, is also
invited to attend meetings. The committee
met once during the year. The committee
takes an active role in considering, with
the wider board, the overall culture of the
company. It is also involved in ensuring the
company considers equality, inclusion and
diversity in senior management positions.
The terms of reference for the three
committees are available on the company’s
website www.castings.plc.uk.
Effectiveness
The board undertakes an annual assessment
of its own performance and that of its
committees and the directors. The executive
directors are appraised annually by the
chairman and the non-executive directors.
The chairman is appraised annually by the
non-executive directors. The chairman
considers the effectiveness of each non-
executive director annually.
The results of these appraisals are
considered by the remuneration committee
for the determination of their remuneration
recommendations.
Directors’ conflicts
of interest
A director has a statutory duty to avoid a
situation in which he has, or can have, an
interest that conflicts or possibly may conflict
with the interests of the company. A director
will not breach that duty if the relevant matter
has been authorised in accordance with the
Articles of Association by the other directors.
The board has conducted a review of actual
or possible conflicts of interest in respect
of each director. The board has an agreed
process for identifying current conflicts,
authorised conflicts that have been identified
and stipulated conditions in accordance with
the guiding principles and agreed a process
to identify and authorise future conflicts. In
practice, directors are asked to consider and
disclose actual or potential conflicts as and
when a matter arises. There have been no
conflicts identified during the year.
Relations with
shareholders
The company holds meetings from time
to time with institutional shareholders
to discuss the company’s strategy and
financial performance. The board regularly
receives copies of analysts’ and brokers’
briefings. The chairman is available to
meet major shareholders on request to
discuss governance and strategy. The
senior independent director and other
non-executive directors are also available to
meet shareholders if requested. The Annual
General Meeting is used to communicate with
private and institutional investors.
Attendance at meetings
Attendance at board and board committee
meetings during the year is detailed in the
table shown below:
Board
Audit and risk
committee
Remuneration
committee
Director
Required to
attend Attended
Required to
attend Attended
Required to
attend Attended
A. N. Jones 9 9 — 3 — 3
A. Vicary 9 9 — 3 — 3
S. J. Mant 9 9 — 3 — 3
M. L. Smith 9 9 3 3 3 3
S. R. Harrison 9 9 3 3 3 3
A. K. Eastgate (resigned 21 August 2025) 4 4 1 1 2 2
Corporate Governance
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
28
Castings P.L.C.
Internal control
The board is ultimately responsible for the
group’s system of internal controls, including
internal financial control, and for monitoring its
effectiveness. There is a continuous process
for identifying, evaluating and managing the
significant risks faced by the group which
is regularly reviewed and has been in place
throughout the year under review and up to
the date of approval of the Annual Report and
financial statements. However, such a system
is designed to manage rather than eliminate
the risk of failure to achieve business
objectives and can provide only reasonable
and not absolute assurance against material
misstatement or loss. The review covers
all controls including financial, operational,
compliance and risk management.
The directors confirm they have established
procedures necessary to implement the
internal control guidance for directors such
that they comply with the 2024 UK Corporate
Governance Code for the accounting year
ended on 31 March 2026.
Internal financial control
The directors are responsible for maintaining
the group’s systems of internal financial
control. These controls are designed to both
safeguard the group’s assets and ensure the
reliability of financial information used within
the business and for publication. As with
any such systems, controls can only provide
reasonable and not absolute assurance
against material misstatement or loss.
Internal financial control is operated within a
clearly defined organisational structure with
clear control responsibilities and authorities,
and a practice throughout the group of
regular management and board meetings to
review all aspects of the group’s businesses
including those aspects where there is a
potential risk to the group.
For each business there are regular weekly
and monthly reports, reviewed by boards
and management, which contain both written
reports and management accounts. The
accounts include income statements and
balance sheets for the year under review, year
to date and previous year and are compared
with expected results. A variety of operational
and financial ratios are also produced.
Continual monitoring of the systems of
internal financial control is conducted by all
management. The external auditor, who is
engaged to express an opinion on the group
financial statements, also considers the
systems of internal financial control to the
extent necessary to express that opinion. The
external auditor reports the results of their
work to management, including members of
the board and the audit and risk committee.
The board does not consider there is a need
for an internal audit function due to the size
and non-complexity of the group.
Going concern
The directors have assessed the future
funding requirements of the group and the
company and compared them to the level
of funding available. Details of the cash
position are set out in note 22 to the financial
statements. The group’s objectives, policies
and processes for managing its capital, its
financial risk management objectives, details
of its financial instruments and hedging
activities, and its exposure to credit risk and
liquidity risk are also set out in notes 20 and
22 to the financial statements.
The directors’ assessment of going
concern, included a review of the group’s
financial forecasts for a period of at least
12 months from the date of approval of the
financial statements. They modelled a base
case, which reflects the directors’ current
expectations of future trading in addition to
potential severe but plausible impacts on
revenue, profits and cash flows in a downside
scenario. The base case scenario is based on
current demand schedules from customers
and assumes that these levels, along with
average selling prices and costs remain
consistent. The group’s recent record of cash
conversion was used to estimate the cash
generation in the period under review. The
directors also considered severe but plausible
downside scenarios, further details of which
are set out in the viability statement on page
21 and the accounting policies in note 1.
The directors have a reasonable expectation
that the company and the group have
adequate resources to continue operations
for the foreseeable future and they continue
to adopt the going concern basis in preparing
the financial statements.
Summary
The board takes its responsibilities seriously
albeit there are a number of areas in which
it does not comply fully with the 2024 UK
Corporate Governance Code. It does not
feel that the size or complexity of the group
and the way in which it governs would
be enhanced or strengthened by further
changing the already existing high standards
of corporate governance practised.
For the year ended 31 March 2026 the
company complied with the 2024 UK
Corporate Governance Code other than the
following points:
• Of the three non-executive directors who
served during the year one,
A. N. Jones, has been a member of
the board for more than nine years.
Notwithstanding his length of service,
the board considers that A. N. Jones
remains independent and that the skill
and experience he brings and his overall
contribution to the board remain of
significant value to the group.
• The non-executive directors do not have
specified term contracts.
• The finance director also performs the
role of company secretary as there is no
one else within the business qualified to
fulfil the position. The role of company
secretary is not full time.
• There is not a director appointed from
the workforce, formal workforce advisory
panel nor designated non-executive
director for engagement with the
workforce.
These are considered acceptable given the
size of the company and the way in which it
operates.
By order of the board
S. J. Mant
Company Secretary
17 June 2026
Corporate Governance
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
29
Corporate Governance
Audit and Risk Committee Report
Responsibilities
The main responsibilities of the audit and risk
committee are:
• to monitor the integrity of the financial
statements of the company and any
formal announcements relating to the
company’s financial performance,
reviewing significant financial reporting
judgements contained in them;
• to provide advice on whether the
company’s Annual Report is fair, balanced
and understandable;
• to review the company’s internal financial
controls and internal control and risk
management systems;
• to review the need for an internal audit
function;
• to make recommendations to the board,
for it to put to the shareholders for their
approval in general meeting, in relation
to the appointment, reappointment and
removal of the external auditor and to
approve the remuneration and terms of
engagement of the external auditor;
• to review and monitor the external
auditor’s independence and objectivity
and the effectiveness of the audit process,
taking into consideration relevant UK
professional and regulatory requirements;
• to develop and implement policy on the
engagement of the external auditor to
supply non-audit services; and
• to report to the board on how it has
discharged its responsibilities.
As part of its work, and in line with its terms
of reference, the committee also considers
the discharge of the board’s responsibilities in
the areas of corporate governance, financial
reporting and internal control, including the
internal management of risk, as identified in
the UK Corporate Governance Code.
Committee composition
and meetings
The audit and risk committee is chaired by
M. L. Smith with S. R. Harrison also being
a member of the committee. The chairman,
finance director and other directors may
also attend meetings as appropriate to the
business in hand but are not members of the
committee.
The board considers that M. L. Smith has the
most recent and relevant financial experience
as required by the code.
The committee meets at least three times
a year. Meetings are also attended by
representatives of the group’s external
auditor. At meetings attended by the external
auditor, time is allowed for the committee
to discuss issues with the external auditor
without the executive directors being present.
The committee operates under formal
terms of reference and these are reviewed
annually. The committee considers that it has
discharged its responsibilities as set out in its
terms of reference to the extent appropriate
during the year. There were no changes to the
terms of reference in the year under review.
Financial reporting and
accounting judgements
During the year, the committee reviewed
the appropriateness of the group’s half-year
and full-year financial statements, taking into
account the reports of the group finance
director and external auditor.
The main areas of focus considered by the
committee during the year were as follows:
• revenue recognition processes have been
reviewed to ensure revenue has been
recognised appropriately and consistency
of policy applied across the group; and
• reviewed the viability statement and
going concern assessment and agreed
an appropriate assessment period and
the reasonableness of the profit and loss
and cash flow estimates, together with
an evaluation of the main risks affecting
the viability of the company over that time
frame.
Internal control
During the year, the committee reviewed
the effectiveness of the group’s system of
internal controls and risk management and
the disclosures of the results in this Annual
Report. The committee concluded the system
to be effective.
The committee again concurred with the
board’s view that there is no requirement for
an internal audit function due to the size and
non-complex nature of the group.
External auditor
The committee oversees the relationship with
the external auditor and monitors all services
provided by and fees payable to them, to
ensure that potential conflicts of interest
are considered and that an objective and
professional relationship is maintained.
In particular, the committee reviews and
monitors the independence and objectivity
of the external auditor and the effectiveness
of the audit process. At the outset of the
audit process, the committee receives from
the auditor a detailed audit plan, identifying
their assessment of the key risks and their
intended areas of focus. This is agreed
with the committee to ensure coverage is
appropriately focussed.
Feedback on the audit process is requested
from management and for the 2026 financial
year, management was satisfied that there
had been appropriate focus and challenge on
the primary areas of audit risk and assessed
the quality of the audit process to be
satisfactory. The committee concurred with
the view of management.
The committee also keeps under review
the nature, extent, objectivity and cost of
non-audit services provided by the external
auditor; there have been no such services
provided during the year.
Forvis Mazars LLP has been the group’s
external auditor since 2020. In June 2026
the committee reviewed the external audit
mandate and confirmed the continuing
appointment of Forvis Mazars LLP. This was
on the basis the committee was satisfied with
the quality of the audit and that the Forvis
Mazars LLP audit team remained objective
and independent. The committee has
recommended to the board that a resolution
be put to shareholders for the reappointment
of the auditor at the Annual General Meeting.
M. L. Smith
Chairman of the Audit and Risk Committee
17 June 2026
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
30
Castings P.L.C.
Directors’ Remuneration Report
Annual statement
On behalf of the board, I am pleased to present the Directors’ Remuneration Report for the year ended 31 March 2026.
The remuneration committee has reviewed the existing directors’ remuneration policy, which was approved at the AGM held in 2023 for a period
of three years, and the application of that policy in the period since then.
The conclusion of the review is that the current policy is functioning well and supports our strategy and values. Therefore, we are not proposing
to make any changes to the structure of our annual bonus, Share Plan or the incentive opportunities available in the remuneration policy for 2026
to 2029. The committee also deems the bonus targets to remain appropriately stretching for the next three years of the policy.
There have been a handful of proposed changes to the policy to ensure alignment to the updated 2024 UK Corporate Governance code and
general market practice. These changes includes the introduction of share ownership guidelines and other minor changes to increase flexibility in
the policy. Full details of the proposals are set out in the proposed remuneration policy below.
By order of the board
S. R. Harrison
Chairman of the remuneration committee
17 June 2026
Remuneration committee
The remuneration committee is chaired by S. R. Harrison with M. L. Smith also being a member. The group chairman, whilst not a formal
member of the committee, is also invited to attend meetings. The remuneration committee is responsible within the authority delegated by the
board for determining the remuneration policy and for determining the specific remuneration packages for each of the executive directors and
the chairman. The committee also monitors the structure of remuneration of senior management. None of the executive directors were present
at meetings of the committee during consideration of their own remuneration.
The remuneration committee’s terms of reference are available on the company’s website www.castings.plc.uk.
Remuneration policy
The underlying policy in setting the remuneration of the executive directors is that it shall be designed to attract, retain and motivate the directors
and be reasonable and fair in relation to their responsibilities.
Castings P.L.C. Annual Report for the year ended 31 March 2026
31
Corporate Governance
Detailed policy
The table below sets out the directors’ remuneration policy that will be proposed at the company’s AGM and, if approved, will apply for three
years from the date of approval.
Remuneration
element
Purpose and link to
strategy Operation Maximum potential value
Base salary To provide competitive
fixed remuneration
in order to attract
and retain high
calibre directors to
deliver growth for the
business.
Reviewed with effect from 1 April each year taking into account
market rates, performance of the individual and the company and
the rates of salary increase across the group.
Whilst no absolute maximum
is prescribed, increases
will take account of other
salary increases across
the group. However, in
certain circumstances,
including changing roles and
responsibilities, market levels
and individual and group
performance, the committee
will have discretion to award
larger increases.
Benefits To provide broadly
market competitive
benefits as part of the
total remuneration
package.
Currently include the provision of car benefit, private healthcare, life
assurance and income protection. Benefits are reviewed annually
taking into account market practice. The committee does have
discretion to alter benefits and provide any other benefits that
the committee deems appropriate, and the Company may make
a payment in respect of any associated tax liability where the
committee considers this to be appropriate.
Whilst the committee has not
set an absolute maximum
on the level of benefits,
these are set at a level that
the committee considers
appropriate against the market.
Annual bonus To reward contribution
to the performance of
the group, aligned to
shareholder interests.
Bonus is based on paying a proportion of salary subject to the
achievement of a certain level of profits before tax and exceptional
items (‘PBT’). 5% of salary would be payable per £1 million of PBT
between £10m and £18m, 7.5% of salary per £1 million of PBT
between £18m and £21m and 10% of salary for every £1m of PBT
above £21m. The committee does have discretion to pay an annual
bonus (not to exceed 50% of base salary) if, in its opinion, the bonus
otherwise payable does not adequately recognise the performance
of the individual or the company or the committee considers that the
formulaic outturn is not appropriate in the context of other factors
considered by the committee to be relevant.
The committee has discretion to make such changes as it thinks
fit to the PBT targets, particularly having regard to any significant
corporate events such as share issues. The annual bonus will be
subject to malus and clawback provisions as set out below.
The annual bonus cannot
exceed 125% of base salary.
Pension To provide competitive
retirement benefits
as part of the overall
remuneration package.
Executive directors receive 7% of base salary as contributions to
personal pension plans or a cash equivalent.
7% of base salary.
Restricted
Share plan
(‘RSP’)
To provide a
mechanism to enable
executive directors to
build a shareholding
in the company with
a view to providing
a further incentive
and alignment with
the interests of
shareholders.
Awards will be in the form of nil-cost options and will normally vest
three years after the date of grant, subject to continued employment
with the group. Awards are not subject to performance measures
as the committee believes that the balance between certainty and
a lower value of award achieves the objective of providing a further
incentive to the executive directors and aligning them more closely
with the interests of shareholders, whilst remaining straightforward
and easily understood. Awards will normally be subject to a two
year holding period after vesting and may be granted on the basis
that the participant shall be entitled to an additional benefit (in cash
or shares) in respect of dividends paid over the subsequent holding
period. Awards are subject to malus and clawback provisions as set
out below
Awards will normally be
granted to a value of 25%
of the base salary at the
date of granting, though the
committee has the discretion
to increase this to 50% of
base salary in exceptional
circumstances.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
32
Castings P.L.C.
Share ownership guidelines
In-service guideline
During employment, shareholding guidelines require executive directors to acquire a shareholding with a value equal to 100% of base salary,
with an expectation that the guideline will be achieved within 5 years of appointment. Progress towards the guideline will be reviewed regularly.
Executive directors will be required to retain at least half of all shares acquired under the RSP until the shareholding guideline is met, unless in
exceptional circumstances the committee exercises discretion to vary this requirement. Shares subject to RSP awards which have vested but
which remain subject to a holding period count towards the guideline on a net of assumed tax basis.
Post-employment guideline
A post-employment shareholding guideline is in place such that, for one year following an executive director stepping down from the Board,
they must retain such number of their “relevant shares” as have a value (at the time of stepping down) equal to the shareholding guideline that
applies during service. “Relevant shares” include all shares acquired pursuant to awards granted under the Company’s share plans, including
shares subject to awards which have vested but not yet been released and/or been exercised (on a net of assumed tax basis). Shares which the
executive director has purchased are not “relevant shares” for these purposes.
If the executive director holds less than the required number of “relevant shares” at any time, they must retain the “relevant shares” they hold.
Unless the committee determines otherwise, when considering the extent to which this requirement is satisfied, an executive director or former
executive director shall be deemed to have disposed of shares which are not “relevant shares” before any “relevant shares” that person holds.
The committee retains discretion to vary this requirement in exceptional circumstances.
Operation of share plans
The committee may amend the terms of awards and options under its share plans in accordance with the plan rules in the event of a variation of
the company’s share capital or a demerger, special dividend or other similar event or otherwise in accordance with the terms of the plans. The
committee will operate any such plan in accordance with its rules. Share awards granted under any such plan may be settled (in whole or in part)
in cash, although the committee would only do so where the particular circumstances made it appropriate to do so – for example, where there is
a regulatory restriction on the delivery of shares.
Choice of performance conditions
The annual bonus performance targets are based on profit before tax which is aligned with the company’s overall strategy and is a key
performance indicator for the company. The targets are reviewed in line with the Policy taking into account the Company’s strategy and outlook
for the next three years.
The Share Plan Awards are not subject to performance measures as the committee believes that the balance between certainty and a lower
value of award achieves the objective of providing a further incentive to the executive directors and aligning them more closely with the interests
of shareholders, whilst remaining straightforward and easily understood.
Reduction and recovery provisions (malus and clawback)
The annual bonus and RSP awards are subject to reduction and recovery (malus and clawback) provisions as follows:
• any bonus paid in cash may be recovered for up to two years following payment; and
• an RSP award may be cancelled (if shares have not been delivered to satisfy it) or recovered from a participant (if shares have been delivered)
up to the second anniversary of vesting.
The reduction and recovery provisions may be applied in the following circumstances: (i) material misstatement of financial results; (ii) material
failure of risk management, fraud or other material irregularity; (iii) serious reputational damage; (iv) misconduct; (v) material corporate failure; (vi)
error in the information or assumptions based on which an Award was granted, vests or is released; or (vii) any other circumstances considered
to be similar in their nature or effect to those set out above.
A recovery period of two years following payment of an annual bonus and vesting of an RSP award is considered appropriate on the basis that:
• it is reasonable to assume that an event relating to the performance / vesting period requiring clawback would be discovered within a two-
year period;
• it is considered a reasonable period to support the enforceability of clawback; and
• it is aligned with market practice.
Directors’ Remuneration Report
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
33
Corporate Governance
Differences between the executive directors’ and general employee’s remuneration
policy
Performance related pay, through the annual bonus, makes up a significant proportion of total remuneration for the executive directors and other
senior employees compared to employees generally reflecting the role of these individuals in managing the business to achieve the company’s
strategic objectives. The committee considers that the emphasis on performance related pay for executive directors and senior employees and
participation in the Share Plan closely aligns the Directors’ interests with those of shareholders and helps to deliver excellent long-term company
performance.
Non-executive director remuneration
The fees paid to non-executive directors are set by reference to current levels in the market. Non-executive directors do not receive bonus,
pension, benefits or RSP awards.
Statement of shareholding voting
The voting to approve last year’s annual report on the directors’ remuneration and the directors’ remuneration policy at the respective AGMs are
set out in the following table:
Votes for
(including
discretionary)
Number
%
Votes
against
Number
%
Total
number of
votes cast
Number
of votes
withheld
Annual report on remuneration – approved at AGM on 21 August 2025 27,559,912 13,090 27,573,002 13,330
99.95% 0.05%
Directors’ remuneration policy – approved at AGM on 15 August 2023 27,633,050 3,599,620 31,232,670 2,061
88.47% 11.53%
Implementation in 2026/27
The committee has considered market rates and increases awarded to all employees in determining the base salary increases for the executive
directors for 2026/27. The committee did not consult directly with the workforce. The chief executive officer and finance director will receive
a base salary of £390,160 and £283,772 respectively during the year ending 31 March 2027. This represents an increase of 3.75%, which is
broadly in line with the average rate of increase for employees across the group.
Scenario charts
The following charts set out the potential total remuneration payments for the year ended 31 March 2027 under our remuneration policy based
on the following assumptions:
• Minimum – base salary, no bonus payment and no share option award.
• Prior year – base salary, bonus based on profit as for year ended 31 March 2026 and 25% of base salary as share option award.
• Maximum – base salary, bonus of 125% of base salary and 25% of base salary as share option award.
Chief executive officer Finance director
0 100 200 300 400 500 600 700 800 900 1000 110 0
79%
40%
50%
10%
100%
Minimum
Remuneration £000
FY26 result
Maximum
20%
1%
0 100 200 300 400 500 600 700 800
Minimum
Remuneration £000
FY26 result
Maximum
79%
40% 50% 10%
100%
20%
1%
Salary
Bonus
Share option award
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
34
Castings P.L.C.
Recruitment policy
External appointment
In the event of the recruitment of a new executive director, the remuneration package would reflect the policy set out above so far as is possible.
The overall maximum level of variable remuneration which may be granted (excluding ‘buyout’ awards as referred to below) is 175% of salary.
The committee may make payments or awards in respect of hiring an employee to ‘buyout’ remuneration arrangements forfeited on leaving a
previous employer, which may be awarded in addition to the remuneration structure outlined in the table above. In doing so, the committee will
take account of relevant factors, including any performance conditions attached to the forfeited arrangements and the time over which they
would have vested.
The committee will generally seek to structure ‘buyout’ awards or payments on a comparable basis to the remuneration arrangement forfeited.
Any such ‘buyout awards will typically be made under the annual bonus or RSP rules, although in exceptional circumstances the committee
may exercise the discretion available under Listing Rule 9.3.2 R to make awards using a different structure. Any such payments or awards are
excluded from the maximum level of variable remuneration referred to above.
Other elements of remuneration may be included in appropriate circumstances, such as:
• an interim appointment being made to fill an executive director role on a short-term basis (including if exceptional circumstances require that
the non-executive chair or other non-executive director takes on an executive function); or
• if an executive director is recruited at a time in the year when it would be inappropriate to provide an annual bonus or long-term incentive
award for that year.
Internal promotion
In cases of appointing a new executive director by way of internal promotion, the committee and board will act consistently with the Policy
for external appointees detailed above. Where an individual has contractual commitments made prior to their promotion to executive director
level, the company will continue to honour these arrangements. Incentive opportunities for below Board employees are typically no higher than
executive directors.
Non-executive directors
Fees payable on the appointment of a chairman or non-executive director would be in line with the fee policy in place at the time of appointment.
Directors’ shareholdings (audited)
The directors’ interests in the ordinary share capital of the company (including the interest of connected persons) are as follows:
2026
Total
2025
Total
A. N. Jones — —
A. Vicary 55,828 40,000
S. J. Mant 27,912 20,037
M. L. Smith — —
S. R. Harrison — —
There have been no changes in the shareholdings of directors since the year end.
Directors’ contracts
The executive directors entered into new service contracts on 4 June 2020. The contracts are terminable on twelve months’ notice, which is
considered by the committee to be appropriate, and do not contain any provision for predetermined compensation in the event of termination.
Any payments for loss of office would be determined at the time taking into account all the circumstances. Non-executive directors do not have
a contract of service.
Policy of payment for loss of office
The company retains the right to terminate each executive director’s service agreement by making a payment in lieu of some or all of the notice
period. Any such payment would consist of base salary and may also include benefits (including pension or salary supplement contributions) in
respect of the unexpired notice period for termination.
Any payment to an executive director on termination in respect of annual bonus will be determined by the committee taking into account the
circumstances of the termination. Unless otherwise determined by the committee, any payment will be pro-rated to reflect the proportion of
the bonus year worked and subject to performance achieved. Payments will ordinarily only be made at the usual time (although the committee
retains discretion to make payments early in appropriate circumstances). The committee retains discretion to pay the whole of the bonus for the
year of departure and/or the previous year in cash but will only do so in exceptional circumstances.
Entitlements under the company’s Share Plan will be treated in accordance with the plan rules in the event of cessation of employment.
Directors’ Remuneration Report
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
35
Corporate Governance
Statement of consideration of shareholder views
The committee consults with major shareholders and their representative bodies on remuneration matters, particularly if any material changes
are proposed to the remuneration policy. As there were no material changes to the proposed remuneration policy shareholders had not been
consulted.
Statement of consideration of employment conditions elsewhere in the group
The committee does not directly consult with the wider workforce when determining the remuneration of the executive directors.
Professional advice
The committee received external advice during the year by way of a review of the remuneration policy to be presented to shareholders at the
AGM. The advice was received from Deloitte LLP at a fee of £3,000.
Annual Report on Directors’ Remuneration
Directors’ remuneration during the year (audited)
The directors’ remuneration for the year ended 31 March 2026 is set out in the table below.
A. N. Jones A. Vicary S. J. Mant A. K. Eastgate
1
M. L. Smith S. R. Harrison
2
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
Salary/fees 101 97 376 362 274 263 18 44 45 42 42 22
Benefits — — 6 6 16 15 — — — — — —
Pension contributions — — 16 16 16 16 — — — — — —
Total fixed remuneration 101 97 398 384 306 294 18 44 45 42 42 22
Performance-related bonus
3
— — 8 — 6 — — — — — — —
Share options exercised
4
— — 62 — 45 — — — — — — —
Total variable remuneration — — 70 — 51 — — — — — — —
Total remuneration 101 97 468 384 357 294 18 44 45 42 42 22
1. A. K. Eastgate retired as a director on 21 August 2025.
2. S. R. Harrison was appointed a director on 26 September 2024.
3. Profit before tax and exceptional items (‘PBT’), for the purposes of annual bonus calculations for the year ended 31 March 2026, was measured against a pre-
determined range, with zero payment below the threshold (£10 million) up to full payment at the maximum of the range (£21 million). This is in accordance with
the remuneration policy approved at the 2023 AGM. The profit figure of £10.4 million comprises the profit before taxation of £10.3 million for the year plus the
defined contribution pension cost that is added back. The annual bonus for the executives, agreed for payment by the remuneration committee, is 2.187% of
their respective salaries. It is noted that the directors’ remuneration report (approved in 2023 AGM) that relates to this performance target is 5% of salary would be
payable per £1 million of profit between £10 million and £18 million, 7.5% of salary per £1 million of profit between £18 million and £21 million and 10% of salary
for every £1 million of profit above £21 million.
4. The value of share options exercised includes the cash value paid for dividends declared during the two year holding period (as set out below).
Share options
Share options granted under the Castings 2020 Restricted Share Plan are nil-cost options which vest three years after the grant date and are
subject to continued employment with the group. The options are also subject to a two year holding period during which the participant shall be
entitled to an additional benefit (in cash or shares) in respect of dividends paid in that period. The following nil-cost options were granted during
the year:
Grant date
Number of
shares
Market price
at grant date
1
Fair value at
grant date
A. Vicary 9 July 2025 32,543 £2.889 £94,015
S. J. Mant 9 July 2025 23,669 £2.889 £68,379
1. The average closing share price of the five days preceding the grant date.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
36
Castings P.L.C.
Share options continued
In the event that the share price on vesting is 50% higher than the market price at the date of grant, the value of the options granted to A. Vicary
and S. J. Mant would be higher by £47,008 and £34,190 respectively. The following nil-cost options are outstanding as at 31 March 2026:
As at
1 April 2025
Options
granted
Options
exercised
As at 31
March 2026
A. Vicary 110,028 32,543 (20,432) 122,139
S. J. Mant 80,026 23,669 (14,860) 88,835
Relative importance of spend on pay
The following table shows actual expenditure of the group and change in spend between the current and previous financial years on
remuneration paid to all employees compared to distributions to shareholders.
2026
£000
2025
£000
Change
£000
Change
%
Remuneration of all employees 49,097 50,429 (1,332) -2.6%
Dividends declared to shareholders 7,996 7,996 — 0.0%
Chief executive officer remuneration
The total remuneration paid to the chief executive officer for the last ten years is as follows:
2026
£000
2025
£000
2024
£000
2023
£000
2022
£000
2021
£000
2020
£000
2019
£000
2018
£000
2017
£000
Performance-related bonus 8 — 242 70 53 – 30 57 54 61
Percentage of maximum
1
1.7% 0.0% 56.0% 17.6% 14.2% 0.0% n/a n/a n/a n/a
Total remuneration 468 384 616 414 376 319 345 357 341 340
1. The performance-related bonus did not have a maximum level for years 2020 and earlier.
Percentage change in remuneration
The following table sets out the annual percentage change in directors’ remuneration compared to the average remuneration of a Castings
employee for each of the last five years.
Salary/fees Taxable benefits Performance related bonus
2026
%
2025
%
2024
%
2023
%
2022
%
2026
%
2025
%
2024
%
2023
%
2022
%
2026
%
2025
%
2024
%
2023
%
2022
%
A. Vicary 4.0 4.5 9.1 6.4 1.4 0.0 -57.1 0.0 0.0 0.0 100.0 -100.0 245.7 32.1 n/a
S. J. Mant 4.0 4.5 9.1 6.5 1.4 6.7 0.0 7.1 0.0 0.0 100.0 -100.0 151.4 32.1 n/a
A. N. Jones
1
4.0 4.5 82.4 30.8 0.0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
A. K. Eastgate
2
4.0 4.5 13.1 2.7 0.0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
M. L. Smith
3
4.0 4.5 185.7 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
S. R. Harrison
4
90.9 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Employee average 5.8 -6.4 8.6 13.7 6.4 n/a n/a n/a n/a n/a 7.5 -26.7 1.2 21.6 42.4
1. A. N. Jones was appointed chairman on 1 January 2023.
2. A. K. Eastgate was appointed senior independent director on 1 January 2023 and retired as a director on 21 August 2025.
3. M. L. Smith was appointed as a director on 16 November 2022.
4. S. R. Harrison was appointed as a director on 26 September 2024.
Directors’ Remuneration Report
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
37
Corporate Governance
Chief executive officer pay ratio
The table below shows the chief executive officer’s pay ratio at 25th, median and 75th percentile of our employees for the year to
31 March 2026. The ratios have been determined using Option A of The Companies (Miscellaneous Reporting) Regulations 2018 which is
considered the most accurate method for calculating the ratio.
25th percentile
pay ratio
Median pay
ratio
75th percentile
pay ratio
Year ended 31 March 2026 13.3 10.9 8.6
Year ended 31 March 2025 14.4 12.4 10.0
Year ended 31 March 2024 14.7 12.7 10.3
Year ended 31 March 2023 14.0 11.4 9.2
Year ended 31 March 2022 14.3 11.1 9.1
Year ended 31 March 2021 13.6 9.9 8.3
There has not been a significant change in the ratios from 2025 to 2026.
Total shareholder return performance graph
The following graph shows the company’s performance, measured by total shareholder return, compared with the performance of the FTSE All
Share – Industrial Engineering Index, also measured by total shareholder return. This index has been selected for this comparison because this is
considered to be the most relevant index for the company.
Castings
P.L.C. TSR performance vs FTSE All Share
Industrials Engineering Index
Castings P.L.C. FTSE All Share Industrial Engineering Index
Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 Mar 26Sep 25
50
70
90
110
130
150
170
190
210
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
38
Castings P.L.C.
Statement of Directors’ Responsibilities
in Respect of the Financial Statements
The directors are responsible for preparing
the Annual Report and the financial
statements in accordance with applicable law
and regulation.
Company law requires the directors to
prepare financial statements for each financial
year. Under that law the directors have
prepared the group financial statements in
accordance with UK-adopted international
accounting standards and the parent
company financial statements in accordance
with United Kingdom Generally Accepted
Accounting Practice (United Kingdom
Accounting Standards, comprising FRS
101 ‘Reduced Disclosure Framework’, and
applicable law). Under company law the
directors must not approve the financial
statements unless they are satisfied that they
give a true and fair view of the state of affairs
of the group and parent company and of
the profit or loss of the group for that period.
In preparing the financial statements, the
directors are required to:
• select suitable accounting policies and
then apply them consistently;
• state whether UK-adopted international
accounting standards have been followed
for the group financial statements and
United Kingdom Accounting Standards,
comprising FRS 101, have been
followed for the parent company financial
statements, subject to any material
departures disclosed and explained in the
financial statements;
• make judgements and accounting
estimates that are reasonable and
prudent; and
• prepare the financial statements on
the going concern basis unless it is
inappropriate to presume that the group
and parent company will continue in
business.
The directors are also responsible for
safeguarding the assets of the group and
parent company and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the group and
parent company’s transactions and disclose
with reasonable accuracy at any time the
financial position of the group and parent
company and enable them to ensure that
the financial statements and the Directors’
Remuneration Report comply with the
Companies Act 2006.
Directors’ confirmations
The directors consider that the Annual
Report and financial statements, taken as a
whole, is fair, balanced and understandable
and provides the information necessary
for shareholders to assess the group and
parent company’s position and performance,
business model and strategy.
Each of the directors, whose names and
functions are listed in the Board of Directors
on page 23 confirm that, to the best of their
knowledge:
• the parent company financial statements,
which have been prepared in accordance
with United Kingdom Generally Accepted
Accounting Practice, give a true and fair
view of the assets, liabilities, financial
position and profit of the company;
• the group financial statements, which
have been prepared in accordance with
UK-adopted international accounting
standards, give a true and fair view of the
assets, liabilities, financial position and
profit of the group; and
• the business and financial review includes
a fair review of the development and
performance of the business and the
position of the group and parent company,
together with a description of the principal
risks and uncertainties that it faces.
In the case of each director in office at the
date the Directors’ Report is approved:
• so far as the director is aware, there is
no relevant audit information of which the
group and parent company’s auditor is
unaware; and
• they have taken all the steps that they
ought to have taken as a director in order
to make themselves aware of any relevant
audit information and to establish that the
group and parent company’s auditor is
aware of that information.
Website publication
The directors are responsible for ensuring the
Annual Report and the financial statements
are made available on a website. Financial
statements are published on the company’s
website in accordance with legislation in the
United Kingdom governing the preparation
and dissemination of financial statements,
which may vary from legislation in other
jurisdictions. The maintenance and integrity
of the company’s website is the responsibility
of the directors. The directors’ responsibility
also extends to the ongoing integrity of the
financial statements contained therein.
Castings P.L.C. Annual Report for the year ended 31 March 2026
39
Corporate Governance
Opinion
We have audited the financial statements of Castings P.L.C (the
‘parent company’) and its subsidiaries (the ‘group’) for the year ended
31 March 2026 which comprise the Consolidated Statement of
Comprehensive Income, Consolidated Balance Sheet, Consolidated
Cash Flow Statement, Consolidated Statement of Changes in Equity,
Parent Company Balance Sheet, Parent Company Statement of
Changes in Equity and Notes to the financial statements, including
material accounting policy information.
The consolidated financial statements have been prepared in
accordance with applicable law and UK-adopted international
accounting standards. The parent company financial statements
have been prepared in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting
Standards, comprising FRS 101 “Reduced Disclosure Framework”,
as applied in accordance with the provisions of the Companies Act
2006).
In our opinion:
• the financial statements give a true and fair view of the state of the
group’s and of the parent company’s affairs as at 31 March 2026
and of the group’s profit for the year then ended;
• the group financial statements have been properly prepared in
accordance with UK-adopted international
• accounting standards;
• the parent company financial statements have been properly
prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
• the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the “Auditor’s
responsibilities for the audit of the financial statements” section of our
report. We are independent of the group and the parent company
in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed entities and public interest entities and
we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our audit procedures to evaluate the directors’ assessment of the
group’s and the parent company’s ability to continue to adopt the
going concern basis of accounting included but were not limited to:
• Undertaking an initial assessment at the planning stage of the
audit to identify events or conditions that may cast significant
doubt on the group’s and the parent company’s ability to continue
as a going concern;
• Obtaining an understanding of the relevant controls relating to the
directors’ going concern assessment;
• Making enquiries of the directors to understand the period of
assessment considered by them
• Assessing and challenging the appropriateness of the directors’
key assumptions in their base case cash flow forecasts, as
described in note 1, by reviewing supporting and contradictory
evidence in relation to those key assumptions;
• Assessing the directors’ consideration of severe but plausible
scenarios, including the viability of mitigating actions within the
directors’ control;
• Testing the accuracy and functionality of the model used to
prepare the directors’ forecasts;
• Assessing the historical accuracy of forecasts prepared by the
directors;
• Considering the consistency of the directors’ forecasts with other
areas of the financial statements and our audit; and
• Evaluating the appropriateness of the directors’ disclosures in the
financial statements on going concern
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the group’s and the
parent company’s ability to continue as a going concern for a period
of at least twelve months from when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections of this
report.
In relation to Castings P.L.C’s reporting on how it has applied the UK
Corporate Governance Code, we have nothing material to add or
draw attention to in relation to:
• the directors’ statement in the financial statements about whether
the directors considered it appropriate to adopt the going concern
basis of accounting; and
• the directors’ identification in the financial statements of the
material uncertainty related to the group’s and the parent
company’s ability to continue as a going concern over a period of
at least twelve months from the date of approval of the financial
statements.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to fraud)
we identified, including those which had the greatest effect on: the
overall audit strategy; the allocation of resources in the audit; and
directing the efforts of the engagement team. These matters were
addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Independent Auditor’s Report
to the Members of Castings P.L.C.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
40
Castings P.L.C.
We summarise below the key audit matters in forming our opinion above, together with an overview of the principal audit procedures performed
to address each matter and our key observations arising from those procedures.
These matters, together with our findings, were communicated to those charged with governance through our Audit Completion Report.
Key Audit Matter How our scope addressed this matter
Revenue Recognition – (group and parent)
The group’s and the parent company’s accounting policy for revenue
recognition is set out in the accounting policy notes on page 49 and
69 respectively.
Revenue is material for the group and the parent company and
represents the largest figure in the Consolidated statement of
comprehensive income. An error in this balance could significantly
affect a user’s interpretation of the financial statements.
Revenue recognition in relation to the cut off assertion was identified
as a key audit matter due to the risk that revenue may be recognised
in the incorrect period, particularly for transactions around the year
end.
Our audit procedures included, but were not limited to:
• Identifying key controls relating to revenue recognition and
performing a walkthrough to evaluate their design and
implementation;
• Reviewing management’s cut off assessment and substantively
testing a sample of deferred income recognised at the year end;
• assessing whether management’s cut off procedures were
consistently applied by:
— selecting a sample of transactions close to, and at each
side of, the year-end to assess whether that they had been
posted to the correct financial period in line with the relevant
contractual terms
— agreeing our sampled transactions to supporting
documentation, including invoices and evidence of delivery or
dispatch, cash receipt or trade debtors and
• reviewing manual journals posted to revenue around the period
end.
Our observations
Based on the procedures performed, we did not identify any material
misstatements in relation to revenue recognition.
Our application of materiality and an overview of the scope of our audit
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together
with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on
the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and on the financial
statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group materiality
Overall materiality £865k
How we determined it 0.5% of revenue
Rationale for benchmark applied We consider revenue to be the most appropriate benchmark for selecting materiality for the
following reasons:
• Revenue is a significant KPI for the business with the Annual Report demonstrating the
significant focus on revenues and associated sales tonnage.
• The profit before tax balance has, in prior years, been volatile and is therefore not considered an
appropriate reflection of the group’s trading activities and production volumes.
The percentage applied has been reduced from the prior year to reflect increased economic
uncertainty and to adopt a more cautious approach to audit materiality.
Performance materiality Performance materiality is set to reduce, to an appropriately low level, the probability that the
aggregate of uncorrected and undetected misstatements in the financial statements exceeds
materiality for the financial statements as a whole.
We set performance materiality at £605k, which represents 70% of overall materiality.
Reporting threshold We agreed with the Audit and Risk Committee that we would report to them misstatements
identified during our audit above £25k as well as misstatements below that amount that, in our view,
warranted reporting for qualitative reasons.
Independent Auditor’s Report
to the Members of Castings P.L.C.
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
41
Corporate Governance
Parent company materiality
Overall materiality £612k
How we determined it 0.5% of Revenue
Rationale for benchmark applied – The rationale for selecting revenue as the basis for determining materiality for the parent
company financial statements is the same as that for the group, as set out above.
Performance materiality Performance materiality is set to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements in the financial statements exceeds
materiality for the financial statements as a whole.
We set performance materiality at £428k which represents 70% of overall materiality.
Reporting threshold We agreed with the Audit and Risk Committee that we would report to them misstatements
identified during our audit above £12k as well as misstatements below that amount that, in our view,
warranted reporting for qualitative reasons.
As part of designing our audit, we assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and then
designed and performed audit procedures responsive to those risks. In particular, we looked at where the directors made subjective judgements,
such as assumptions on significant accounting estimates.
We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a
whole. We used the outputs of our risk assessment, our understanding of the group and the parent company, their environment, controls, and
critical business processes, to consider qualitative factors to ensure that we obtained sufficient coverage across all financial statement line items.
Our group audit scope included an audit of the group and the parent company financial statements. Based on our risk assessment, three
components, including the parent company, were subject to full scope audit and one component was subject to specified audit procedures, all
performed by the group audit team. The scope of work performed provided coverage of 96% of group revenue.
At the parent company level, the group audit team also tested the consolidation process and carried out analytical procedures to confirm our
conclusion that there were no significant risks of material misstatement of the aggregated financial information.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report
thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the course of audit or otherwise appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in
the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act
2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements and those reports have been prepared in accordance with applicable legal requirements;
• the information about internal control and risk management systems in relation to financial reporting processes and about share capital
structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Guidance and Transparency Rules sourcebook made by
the Financial Conduct Authority (the FCA Rules), is consistent with the financial statements and has been prepared in accordance with
applicable legal requirements; and
• information about the parent company’s corporate governance code and practices and about its administrative, management and
supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
42
Castings P.L.C.
Matters on which we are required to
report by exception
In light of the knowledge and understanding of the group and the
parent company and their environment obtained in the course of the
audit, we have not identified material misstatements in the:
• strategic report or the directors’ report; or
• information about internal control and risk management systems
in relation to financial reporting processes and about share capital
structures, given in compliance with rules 7.2.5 and 7.2.6 of the
FCA Rules.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to you
if, in our opinion:
• adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the parent company financial statements and the part of the
directors’ remuneration report to be audited are not in agreement
with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are
not made; or
• we have not received all the information and explanations we
require for our audit; or
• a corporate governance statement has not been prepared by the
parent company.
Corporate governance statement
The Listing Rules require us to review the directors’ statement
in relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to Castings P.L.C’s
compliance with the provisions of the UK Corporate Governance
Statement specified for our review.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
• Directors’ statement with regards the appropriateness of
adopting the going concern basis of accounting and any material
uncertainties identified, set out on page 28;
• Directors’ explanation as to its assessment of the entity’s
prospects, the period this assessment covers and why they
period is appropriate, set out on page 21;
• Directors’ statement on fair, balanced and understandable, set out
on page 26;
• Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks, set out on page 8;
• The section of the annual report that describes the review of
effectiveness of risk management and internal control systems,
set out on page 28; and;
• The section describing the work of the Audit and Risk Committee,
set out on page 29.
Responsibilities of directors
As explained more fully in the Statement of directors’ responsibilities
set out on page 38, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true
and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for
assessing the group’s and the parent company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or the parent company or
to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level
of assurance but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud.
Based on our understanding of the group and the parent company
and their industry, we considered that non-compliance with the
following laws and regulations might have a material effect on the
financial statements: employment regulation, anti-money laundering
regulation and health and safety regulation.
To help us identify instances of non-compliance with these laws and
regulations, and in identifying and assessing the risks of material
misstatement in respect to non-compliance, our procedures included,
but were not limited to:
• Gaining an understanding of the legal and regulatory framework
applicable to the group and the parent company, the industry
in which they operate, and the structure of the group, and
considering the risk of acts by the group and the parent company
which were contrary to the applicable laws and regulations,
including fraud;
• Inquiring of the directors, management and, where appropriate,
those charged with governance, as to whether the group and the
parent company is in compliance with laws and regulations, and
discussing their policies and procedures regarding compliance
with laws and regulations;
Independent Auditor’s Report
to the Members of Castings P.L.C.
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
43
Corporate Governance
• Reviewing minutes of directors’ meetings in the year; and
• Discussing amongst the engagement team the laws and
regulations listed above, and remaining alert to any indications of
non-compliance.
We also considered those laws and regulations that have a direct
effect on the preparation of the financial statements, such as tax
legislation, pension legislation, and the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives
and opportunities for fraudulent manipulation of the financial
statements, including the risk of management override of controls, and
determined that the principal risks related to posting manual journal
entries to manipulate reported financial performance, management
bias through judgements and assumptions in significant accounting
estimates, in particular in relation to revenue recognition (which we
pinpointed to the cut-off assertion), and significant one-off or unusual
transactions.
Our procedures in relation to fraud included but were not limited to:
• Making enquiries of the directors and management on whether
they had knowledge of any actual, suspected or alleged fraud;
• Gaining an understanding of the internal controls established to
mitigate risks related to fraud;
• Discussing amongst the engagement team the risks of fraud;
• Addressing the risks of fraud through management override of
controls by performing journal entry testing;
• Reviewing directors and Key Managements bonus scheme and
performance conditions attached to the bonus.
The primary responsibility for the prevention and detection of
irregularities, including fraud, rests with both those charged with
governance and management. As with any audit, there remained a
risk of non-detection of irregularities, as these may involve collusion,
forgery, intentional omissions, misrepresentations or the override of
internal controls.
The risks of material misstatement that had the greatest effect on our
audit are discussed in the “Key audit matters” section of this report.
A further description of our responsibilities is available on the Financial
Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Other matters which we are required to
address
Following the recommendation of the Audit and Risk Committee,
we were appointed by the Board on 08 January 2020, to audit
the financial statements for the year ending 31 March 2020 and
subsequent financial periods. The period of total uninterrupted
engagement is 7 years, covering the years ending 31 March 2020 to
31 March 2026.
The non-audit services prohibited by the FRC’s Ethical Standard were
not provided to the group or the parent company and we remain
independent of the group and the parent company in conducting our
audit.
Our audit opinion is consistent with our additional report to the audit
committee.
Use of the audit report
This report is made solely to the company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a
body for our audit work, for this report, or for the opinions we have
formed.
As required by the Financial Conduct Authority Disclosure Guidance
and Transparency Rules, these financial statements will form part
of the electronic reporting format annual financial report filed on the
National Storage Mechanism of the Financial Conduct Authority.
This auditor’s report provides no assurance over whether the annual
financial report has been prepared using the correct electronic
reporting format.
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
Two Chamberlain Square
Birmingham
B3 3AX
17 June 2026
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
44
Castings P.L.C.
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2026
Notes
| 2026 | 2025 | ||
| £000 | £000 | ||
Revenue | 2 | ||
Cost of sales | 3 | ( | ( |
Gross profit | |||
Distribution costs | 3 | ( | ( |
Administrative expenses | 3 | ( | ( |
Other operating income | 6 | ||
Profit from operations | |||
Finance income | 7 | ||
Finance expenses | 8 | ( | ( |
Profit before income tax | |||
Income tax expense | 9 | ( | ( |
Profit for the year attributable to equity holders of the parent company | |||
Profit for the year attributable to equity holders of the parent company | |||
| Other comprehensive income for the year: | |||
| Items that will not be reclassified to profit and loss: | |||
Movement in unrecognised surplus on defined benefit pension schemes net of actuarial gains and losses | 5 | ||
Other comprehensive income for the year (net of tax) | |||
| Total comprehensive income for the year attributable to the equity holders | |||
of the parent company | |||
Earnings per share attributable to the equity holders of the parent company | 11 | ||
Basic | |||
Diluted |
Notes to the consolidated financial statements are on pages 48 to 65.
Castings P.L.C. Annual Report for the year ended 31 March 2026
45
Financial Statements
Consolidated Balance Sheet
as at 31 March 2026
Notes
| 2026 | 2025 | ||
| £000 | £000 | ||
| ASSETS | |||
| Non-current assets | |||
Property, plant and equipment | 12 | ||
Right-of-use assets | 13 | ||
| Current assets | |||
Inventories | 14 | ||
Trade and other receivables | 15 | ||
Current tax assets | |||
Cash and cash equivalents | |||
Total assets | |||
| LIABILITIES | |||
| Current liabilities | |||
Trade and other payables | 16 | ||
Lease liabilities | 13 | ||
Current tax liabilities | |||
| Non-current liabilities | |||
Lease liabilities | 13 | ||
Deferred tax liabilities | 17 | ||
Total liabilities | |||
Net assets | |||
| Equity attributable to equity holders of the parent company | |||
Share capital | 18 | ||
Share premium account | |||
Treasury shares | ( | ( | |
Other reserve | |||
Retained earnings | |||
Total equity |
Notes to the consolidated financial statements are on pages 48 to 65.
Company registration number – 91580.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
46
Castings P.L.C.
Consolidated Cash Flow Statement
for the year ended 31 March 2026
Notes
| 2026 | 2025 | ||
| £000 | £000 | ||
| Cash flows from operating activities | |||
Profit before income tax | |||
| Adjustments for: | |||
Depreciation of property, plant and equipment and right-of-use assets | 12, 13 | ||
Loss on disposal of property, plant and equipment | 3 | ||
Finance income | 7 | ( | ( |
Finance expenses | 8 | ||
Equity-settled share-based payment expense | 19 | ||
Pension administrative costs | 5 | ||
PAYE/NIC on share options exercised | ( | ||
Operating cash flow before changes in working capital | |||
Decrease in inventories | |||
Decrease/(increase) in receivables | ( | ||
Decrease in payables | ( | ( | |
Cash generated from operating activities | |||
Tax paid | ( | ( | |
Interest received | 7 | ||
Interest paid | 8 | ( | |
Net cash generated from operating activities | |||
| Cash flows from investing activities | |||
Dividends received from listed investments | 6 | ||
Purchase of property, plant and equipment | ( | ( | |
Advanced payments in respect of property, plant and equipment | ( | ||
Proceeds from disposal of property, plant and equipment | |||
Repayments from pension schemes | 5 | ||
Advances on behalf of the pension schemes | 5 | ( | ( |
Net cash used in investing activities | ( | ( | |
| Cash flows from financing activities | |||
Repayment of principal of lease liabilities | ( | ( | |
Dividends paid to shareholders | 10 | ( | ( |
Net cash used in financing activities | ( | ( | |
Increase/(decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents at beginning of year | |||
Cash and cash equivalents at end of year | 22 | ||
| Cash and cash equivalents: | |||
Short-term deposits | |||
Cash available on demand | |||
Notes to the consolidated financial statements are on pages 48 to 65.
Castings P.L.C. Annual Report for the year ended 31 March 2026
47
Financial Statements
Consolidated Statement of Changes in Equity
for the year ended 31 March 2026
Equity attributable to equity holders of the parent
| Share | Share | Treasury | Other | Retained | Total | |
capital a) | premium b) | shares c) | reserve d) | earnings e) | equity | |
| £000 | £000 | £000 | £000 | £000 | £000 | |
At | ( | |||||
Profit for the year | ||||||
| Other comprehensive income: | ||||||
| Movement in unrecognised surplus on defined benefit | ||||||
pension schemes net of actuarial gains and losses (note 5) | ||||||
Total comprehensive income for the year | ||||||
Equity-settled share-based payments (see note 19) | ||||||
Own shares transferred on vesting | ||||||
Share option charge on vesting | ( | ( | ||||
Dividends (see note 10) | ( | ( | ||||
At | ( |
| Equity attributable to equity holders of the parent | ||||||
| Share | Share | Treasury | Other | Retained | Total | |
capital a) | premium b) | shares c) | reserve d) | earnings e) | equity | |
| £000 | £000 | £000 | £000 | £000 | £000 | |
At 1 April 2024 | ( | |||||
Profit for the year | ||||||
| Other comprehensive income: | ||||||
| Movement in unrecognised surplus on defined benefit | ||||||
pension schemes net of actuarial gains and losses (note 5) | ||||||
Total comprehensive income for the year | ||||||
Equity-settled share-based payments (see note 19) | ||||||
Dividends (see note 10) | ( | ( | ||||
At 31 March 2025 | ( |
a) Share capital (note 18) – The nominal value of allotted and fully paid up ordinary share capital in issue.
b) Share premium – Amount subscribed for share capital in excess of nominal value.
c) Treasury shares – Cost of shares acquired by the company.
d) Other reserve – Amounts transferred from share capital on redemption of issued shares.
e) Retained earnings – Cumulative net gains and losses recognised in the statement of comprehensive income.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
48
Castings P.L.C.
Notes to the Consolidated Financial Statements
Castings P.L.C. Annual Report for the year ended 31 March 2026
49
Financial Statements
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
50
Castings P.L.C.
1 Accounting policies continued
Leases continued
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
51
Financial Statements
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
52
Castings P.L.C.
2 Operating segments continued
| Foundry | Machining | |||
| operations | operations | Elimination | Total | |
| £000 | £000 | £000 | £000 | |
Revenue from external customers | 171,746 | 1,481 | — | 173,227 |
Inter-segmental revenue | 18,965 | 29,113 | (48,078) | — |
Segmental result (profit from operations before other operating income and pension cost) | 6,378 | 2,401 | 144 | 8,923 |
| Unallocated income/(costs): | ||||
Defined benefit pension cost | (139) | |||
Other operating income | 1,179 | |||
Finance income | 513 | |||
Finance expenses | (179) | |||
Profit before income tax | 10,297 | |||
Total assets | 154,464 | 27,816 | (17,329) | 164,951 |
Non-current asset additions | 19,343 | 1,172 | — | 20,515 |
Depreciation (including right-of-use asset depreciation) | 4,591 | 3,716 | — | 8,307 |
Total liabilities | (43,498) | (6,333) | 12,152 | (37,679) |
| Foundry | Machining | |||
| operations | operations | Elimination | Total | |
| £000 | £000 | £000 | £000 | |
Revenue from external customers | 175,492 | 1,477 | — | 176,969 |
Inter-segmental revenue | 22,447 | 30,655 | (53,102) | — |
Segmental result (profit from operations before pension cost) | 2,894 | 2,028 | 15 | 4,937 |
| Unallocated income/(costs): | ||||
Defined benefit pension cost | (165) | |||
Finance income | 962 | |||
Finance expenses | (107) | |||
Profit before income tax | 5,627 | |||
Total assets | 153,887 | 28,485 | (14,106) | 168,266 |
Non-current asset additions | 10,203 | 2,988 | — | 13,191 |
Depreciation (including right-of-use asset depreciation) | 5,027 | 3,871 | — | 8,898 |
Total liabilities | (42,976) | (6,677) | 8,822 | (40,831) |
| 2026 | 2025 | |
| £000 | £000 | |
| The geographical analysis of revenues by destination for the year is as follows: | ||
United Kingdom | 33,159 | 28,742 |
Sweden | 49,632 | 50,623 |
Germany | 26,161 | 25,056 |
Netherlands | 24,577 | 25,962 |
Rest of Europe | 25,885 | 29,195 |
North and South America | 13,029 | 16,462 |
Other | 784 | 929 |
173,227 | 176,969 |
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
53
Financial Statements
| 2026 | 2025 | |
| £000 | £000 | |
Raw materials and consumables | 45,688 | 42,914 |
Staff costs (note 4) | 55,500 | 55,841 |
Depreciation of property, plant and equipment and right-of-use assets | 8,307 | 8,898 |
Light, heat and power | 18,262 | 25,123 |
Sub-contract processing | 15,295 | 17,725 |
Carriage | 2,533 | 3,207 |
Agency labour | 2,380 | 391 |
Repairs and maintenance | 7,064 | 7,369 |
Rates and insurance | 2,127 | 2,457 |
Other costs | 7,287 | 8,272 |
Total cost of sales, distribution costs and administrative expenses | 164,443 | 172,197 |
| 2026 | 2025 | |
| £000 | £000 | |
Fees payable to the company’s auditor for the audit of the parent company and group financial statements | 135 | 123 |
Fees payable to the company’s auditor for other services – the audit of the company’s subsidiaries | 90 | 87 |
4 Employee information
2026 | 2025 | |
| Average monthly number of employees during the year was: | ||
Production | 922 | 1,043 |
Management and administration | 136 | 135 |
1,178 |
| 2026 | 2025 | |
| £000 | £000 | |
| Staff costs (including directors) comprise: | ||
Wages and salaries | 47,419 | 48,738 |
Social security costs | 6,264 | 5,247 |
Other pension costs – defined contribution plans | 1,678 | 1,691 |
Other pension costs – defined benefit plans (note 5) | 139 | 165 |
55,500 | 55,841 |
The directors represent the key management personnel. Details of their compensation are given in the Directors’ Remuneration Report on
page 35.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
54
Castings P.L.C.
5 Pensions continued
2026 | 2025 | |
Rate of increase of pensions in payment | 2.9% | 2.7% |
Discount rate | 6.1% | 5.8% |
Inflation assumption (RPI) | 3.3% | 3.1% |
Inflation assumption (CPI) | 3.1% | 2.8% |
| 2026 | 2025 | |
| £000 | £000 | |
| Change in benefit obligation | ||
Benefit obligation at beginning of year | 30,729 | 37,264 |
Past service cost | — | — |
Interest cost on defined benefit obligation | 1,695 | 1,769 |
Actuarial (gains)/losses arising from changes in financial assumptions | (407) | (2,864) |
Actuarial gains arising from changes in demographic assumptions | — | (724) |
Other experience losses/(gains) | 92 | (2,430) |
Benefits paid | (3,021) | (2,286) |
Benefit obligation at end of year | 29,088 | 30,729 |
| Change in plan assets | ||
Fair value of plan assets at beginning of year | 42,962 | 48,127 |
Interest income on plan assets | 2,401 | 2,298 |
Return on plan assets less than discount rate | (1,116) | (5,012) |
Administrative expenses | (139) | (165) |
Benefits paid | (3,021) | (2,286) |
Fair value of plan assets at end of year | 41,087 | 42,962 |
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
55
Financial Statements
Surplus | 11,999 | 12,233 |
Unrecognised pension surplus (asset ceiling) | (11,999) | (12,233) |
Net amount recognised in the balance sheet | — | — |
| Year to | Year to | |
| 31 March | 31 March | |
| 2026 | 2025 | |
| £000 | £000 | |
| Components of pension cost | ||
Current service cost | — | — |
Past service cost | — | — |
Interest cost on defined benefit obligation | 1,695 | 1,769 |
Interest income on plan assets | (2,401) | (2,298) |
Interest expense on effect of asset ceiling on unrecognised surplus | 706 | 529 |
Administrative expenses | 139 | 165 |
Total pension cost recognised within administrative expenses (note 4) | 139 | 165 |
(Gain)/loss arising from changes in financial assumptions | (407) | (2,864) |
Gain arising from changes in demographic assumptions | — | (724) |
Experience gain | 92 | (2,430) |
Return on plan assets less than discount rate | 1,116 | 5,012 |
Changes in asset ceiling on unrecognised surplus | (940) | 841 |
Pension gain shown in statement of comprehensive income | (139) | (165) |
Total defined benefit cost recognised in the year | — | — |
| 31 March | 31 March | |
| 2026 | 2025 | |
| £000 | £000 | |
| Participant category | ||
Active participants | — | — |
Deferred participants | 9,406 | 9,175 |
Pensioners | 19,682 | 21,554 |
29,088 | 30,729 |
| Plan | Plan | |
| assets at | assets at | |
| 31 March | 31 March | |
| 2026 | 2025 | |
| £000 | £000 | |
| Assets category | ||
Cash and cash equivalents | 11,743 | 12,544 |
Asset held by insurance company | 30,040 | 30,880 |
41,783 | 43,424 | |
Amounts repayable to the group | (696) | (462) |
41,087 | 42,962 |
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
56
Castings P.L.C.
5 Pensions continued
2026 | 2025 | |||
| Male | Female | Male | Female | |
| Staff/ | Staff/ | Staff/ | Staff/ | |
| Shopfloor | Shopfloor | Shopfloor | Shopfloor | |
| Scheme member age 65 | ||||
(current life expectancy) | 21.6/21.6 | 24.4/24.4 | 21.6/21.6 | 24.3/24.3 |
| Scheme member age 45 | ||||
(life expectancy at age 65) | 23.3/23.3 | 26.1/26.1 | 23.2/23.2 | 26.0/26.0 |
| 31 March | |
| 2026 | |
| £000 | |
| Defined benefit obligation as a result of: | |
Reduction in the discount rate of 0.25% | 29,756 |
Increase in inflation of 0.25% | 29,521 |
One year increase in life expectancy | 29,792 |
| 31 March | 31 March | |
| 2026 | 2025 | |
| £000 | £000 | |
| Expected benefit payments during: | ||
Year 1 | 2,316 | 2,157 |
Year 2 | 2,401 | 2,316 |
Year 3 | 2,532 | 2,401 |
Year 4 | 2,613 | 2,532 |
Year 5 | 2,660 | 2,613 |
Years 6–10 | 14,280 | 14,070 |
| 2026 | 2025 | |
| £000 | £000 | |
Interest on short-term deposits | 513 | 957 |
Income from listed investments | — | 5 |
513 | 962 |
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
57
Financial Statements
| 2026 | 2025 | |
| £000 | £000 | |
Interest on lease liability | 144 | 107 |
Other interest | 35 | — |
179 | 107 |
9 Income tax expense
| 2026 | 2025 | |
| £000 | £000 | |
| Corporation tax based on a rate of 25% (2025 – 25%) | ||
| UK corporation tax | ||
Current tax on profits for the year | 95 | 531 |
Adjustments to tax charge in respect of prior years | (695) | (60) |
(600) | 471 | |
| Deferred tax | ||
Current year origination and reversal of temporary differences | 2,447 | 999 |
Adjustment to deferred tax charge in respect of prior years | 903 | (16) |
3,350 | 983 | |
Taxation on profit | 2,750 | 1,454 |
Profit before income tax | 10,297 | 5,627 |
| Tax on profit at the standard rate of corporation tax | ||
in the UK of 25% (2025 – 25%) | 2,574 | 1,407 |
| Effect of: | ||
Expenses not deductible for tax purposes | 134 | 82 |
Effect of research and development claims | (201) | — |
Adjustment to tax charge in respect of prior years | (695) | (60) |
Adjustment to deferred tax charge in respect of prior years | 903 | (16) |
Pension adjustments | 35 | 41 |
Total tax charge for the year | 2,750 | 1,454 |
Effective rate of tax (%) | 26.7 | 25.8 |
| 2026 | 2025 | |
| £000 | £000 | |
Final paid of 14.19p per share for the year ended 31 March 2025 (2024 – 14.19p) | 6,167 | 6,167 |
Interim paid of 4.21p per share (2025 – 4.21p) | 1,829 | 1,829 |
Supplementary dividend of nil per share for the year ended 31 March 2025 (2024 – 7.00p) | — | 3,042 |
7,996 | 11,038 |
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
58
Castings P.L.C.
11 Earnings per share and diluted earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
2026 | 2025 | |
Profit after taxation (£000) | 7,547 | 4,173 |
Weighted average number of shares – basic calculation | 43,468,111 | 43,458,068 |
Earnings per share – basic calculation (pence per share) | 17.36p | 9.60p |
Number of dilutive share options in issue | 290,029 | 214,316 |
Weighted average number of shares – diluted calculation | 43,758,140 | 43,672,384 |
Earnings per share – diluted calculation (pence per share) | 17.25p | 9.56p |
12 Property, plant and equipment
| Freehold | |||
| land and | Plant and | ||
| buildings | equipment | Total | |
| £000 | £000 | £000 | |
| Cost | |||
At 1 April 2025 | 42,245 | 169,966 | 212,211 |
Additions during the year | 4,144 | 16,371 | 20,515 |
Disposals | — | (11,374) | (11,374) |
At 31 March 2026 | 46,389 | 174,963 | 221,352 |
| Accumulated depreciation | |||
At 1 April 2025 | 15,657 | 130,431 | 146,088 |
Charge for year | 858 | 7,365 | 8,223 |
Disposals | — | (11,369) | (11,369) |
At 31 March 2026 | 16,515 | 126,427 | 142,942 |
| Net book values | |||
At 31 March 2026 | 29,874 | 48,536 | 78,410 |
At 31 March 2025 | 26,588 | 39,535 | 66,123 |
| Cost | |||
At 1 April 2024 | 41,501 | 166,031 | 207,532 |
Additions during the year | 744 | 12,447 | 13,191 |
Disposals | — | (8,512) | (8,512) |
At 31 March 2025 | 42,245 | 169,966 | 212,211 |
| Accumulated depreciation | |||
At 1 April 2024 | 14,689 | 131,044 | 145,733 |
Charge for year | 968 | 7,866 | 8,834 |
Disposals | — | (8,479) | (8,479) |
At 31 March 2025 | 15,657 | 130,431 | 146,088 |
| Net book values | |||
At 31 March 2025 | 26,588 | 39,535 | 66,123 |
At 31 March 2024 | 26,812 | 34,987 | 61,799 |
The net book value of land and buildings includes £2,168,000 (2025 – £2,168,000) for land which is not depreciated.
Included within plant and equipment are assets in the course of construction with a net book value of £761,000 (2025 – £5,630,000) which are
not depreciated.
Under IAS 36, the group has had regard for the impact of any changes in the technological or regulatory environment which could intrinsically
indicate risk of impairment. The group’s principal risks and uncertainties, as set out on pages 8 to 11, describe the group’s considerations in
respect of technology and climate change. There are no matters which directly and materially impact the directors assessment of valuation of
property, plant and equipment in the medium-term.
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
59
Financial Statements
| Leasehold | ||
| land and | ||
| buildings | Total | |
| £000 | £000 | |
| Cost | ||
At 1 April 2025 | 2,120 | 2,120 |
Additions during the year | — | — |
At 31 March 2026 | 2,120 | 2,120 |
| Accumulated depreciation | ||
At 1 April 2025 | 64 | 64 |
Charge for year | 84 | 84 |
At 31 March 2026 | 148 | 148 |
| Net book values | ||
At 31 March 2026 | 1,972 | 1,972 |
At 31 March 2025 | 2,056 | 2,056 |
| 2026 | 2025 | |
| £000 | £000 | |
Not later than one year | 150 | 125 |
Between one and five years | 600 | 600 |
Later than five years | 3,813 | 3,963 |
4,563 | 4,688 |
14 Inventories
| 2026 | 2025 | |
| £000 | £000 | |
Raw materials | 5,040 | 4,588 |
Work in progress | 7,485 | 11,588 |
Finished goods | 10,958 | 16,604 |
23,483 | 32,780 |
Inventories are net of impairment provisions of £550,000 (2025 – £557,000). The cost of inventories recognised as an expense is £45,688,000
(2025 – £42,914,000).
| 2026 | 2025 | |
| £000 | £000 | |
| Due within one year: | ||
Trade receivables | 30,909 | 34,643 |
Other receivables | 3,155 | 2,332 |
Receivable from pension schemes (see note 5) | 696 | 463 |
Prepayments and accrued income | 6,921 | 14,305 |
41,681 | 51,743 |
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
60
Castings P.L.C.
| 2026 | 2025 | |
| £000 | £000 | |
| Current trade and other payables: | ||
Trade payables | 14,981 | 19,872 |
Social security | 2,331 | 1,949 |
Other payables | 1,201 | 1,242 |
Accruals and deferred income | 6,655 | 8,494 |
25,168 | 31,557 |
| 2026 | 2025 | |
| £000 | £000 | |
At 1 April 2025 | 7,013 | 6,030 |
Credited to other comprehensive income | — | — |
Charged to profit | 3,350 | 983 |
At 31 March 2026 | 10,363 | 7,013 |
| Accelerated | |||
| tax | |||
| depreciation | Other | Total | |
| £000 | £000 | £000 | |
At 1 April 2025 | 7,252 | (239) | 7,013 |
Charged/(credited) to profit | 3,683 | (333) | 3,350 |
Credited to other comprehensive income | — | — | — |
At 31 March 2026 | 10,935 | (572) | 10,363 |
| Accelerated | |||
| tax | |||
| depreciation | Other | Total | |
| £000 | £000 | £000 | |
At 1 April 2024 | 6,130 | (100) | 6,030 |
Charged/(credited) to profit | 1,122 | (139) | 983 |
Credited to other comprehensive income | — | — | — |
At 31 March 2025 | 7,252 | (239) | 7,013 |
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
61
Financial Statements
| 2026 | 2025 | ||
| £000 | £000 | ||
Authorised 50,000,000 | 10p ordinary shares | 5,000 | 5,000 |
Allotted and fully paid 43,632,068 10p ordinary shares | 4,363 | 4,363 |
19 Share-based payments
The company operates the Castings 2020 Restricted Share Plan under which nil-cost options have been granted to executive directors and
certain members of the senior management team. The options vest three years after the grant date and are subject to continued employment
with the group. The options are also subject to a two year holding period during which the participant shall be entitled to additional benefit (in
cash or shares) in respect of dividends paid in that period.
2026 | 2025 | |
At 1 April 2025 | 214,316 | 147,529 |
Granted during the year | 111,005 | 66,787 |
Exercised during the year | (35,292) | — |
At 31 March 2026 | 290,029 | 214,316 |
Average fair value of share awards granted during the year at date of grant (pence) | 229.9 | 329.8 |
Fair value of awards granted during the year (£) | 255,200 | 220,264 |
The options granted in the year were all done so on 9 July 2025 at a fair value, under the Black-Scholes model, of £2.299 per option. The inputs
used in the valuation model, used to determine the charge to the income statement are as follows:
2026 | 2025 | |
Weighted average share price (pence) | 288.9 | 367.2 |
Weighted average exercise price (pence) | Nil | Nil |
Expected dividend yield (%) | 6.57 | 4.81 |
Weighted average remaining contractual life of shares outstanding (years) | 3 | 3 |
Average fair value of share awards granted during the year at date of grant (pence) | 229.9 | 329.8 |
Fair value of awards granted during the year (£) | 255,200 | 220,264 |
The weighted average exercise prices of options outstanding at the beginning and end of the period, and of those granted, exercised and
expired forfeited during the period, were £nil, reflecting that all options granted under the scheme are nil-cost.
At the reporting date, no options were exercisable as all awards are subject to a multi-year vesting and holding period; therefore, the number of
exercisable options was nil and their weighted average exercise price was £nil.
The group recognised a total charge to the consolidated income statement of £190,000 (2025 – £145,000) in respect of equity-settled
share-based payment transactions.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
62
Castings P.L.C.
| 2026 | 2025 | |
| £000 | £000 | |
Capital commitments contracted for by the group but not provided for in the financial statements | 1,309 | 7,376 |
| Financial assets | ||
| 2026 | 2025 | |
| £000 | £000 | |
| Financial assets measured at amortised cost | ||
Trade receivables | 30,909 | 34,643 |
Other receivables | 3,851 | 2,795 |
Cash and cash equivalents | 17,390 | 15,564 |
Total current financial assets | 52,150 | 53,002 |
Total non-current financial assets | — | — |
Total financial assets | 52,150 | 53,002 |
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
63
Financial Statements
| Financial liabilities measured | ||
| at amortised cost | ||
| 2026 | 2025 | |
| £000 | £000 | |
| Current financial liabilities | ||
Trade payables | 14,981 | 19,872 |
Other payables | 1,201 | 1,242 |
Accruals | 6,655 | 8,494 |
Leases | 6 | 228 |
Total current financial liabilities | 22,843 | 29,836 |
Leases | 2,142 | 1,901 |
Total non-current financial liabilities | 2,142 | 1,901 |
Total financial liabilities | 24,985 | 31,737 |
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
64
Castings P.L.C.
22 Financial instrument risk exposure and management continued
| 2026 | 2025 | |
| £000 | £000 | |
30–60 days | 230 | 326 |
60–90 days | 517 | 638 |
90+ days | 370 | 50 |
1,117 | 1,014 |
| 2026 | 2025 | |
| £000 | £000 | |
Opening balance | 898 | 488 |
Increase in provisions | 12 | 410 |
Written off against provisions | — | — |
Closing balance | 910 | 898 |
Notes to the Consolidated Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
65
Financial Statements
| Floating rate | Fixed rate | Interest-free | ||
| assets | assets | assets | Total | |
| 2026 | 2026 | 2026 | 2026 | |
| £000 | £000 | £000 | £000 | |
Sterling | 14,222 | — | 30,453 | 44,675 |
US$ | 282 | — | 2,488 | 2,770 |
Euro | 2,886 | — | 1,819 | 4,705 |
17,390 | — | 34,760 | 52,150 |
| Floating rate | Fixed rate | Interest-free | ||
| assets | assets | assets | Total | |
| 2025 | 2025 | 2025 | 2025 | |
| £000 | £000 | £000 | £000 | |
Sterling | 10,633 | — | 31,864 | 42,497 |
US$ | 650 | — | 2,045 | 2,695 |
Euro | 4,281 | — | 3,529 | 7,810 |
15,564 | — | 37,438 | 53,002 |
| Interest-free | Interest-free | |
| liabilities | liabilities | |
| 2026 | 2025 | |
| £000 | £000 | |
Sterling | 21,158 | 28,616 |
US$ | 212 | 205 |
Euro | 1,467 | 787 |
22,837 | 29,608 |
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
66
Castings P.L.C.
Five Year Financial History – unaudited
For the years ended 31 March
2026
£000
2025
£000
2024
£000
2023
£000
2022
£000
Trading results
Revenue 173,227 176,969 224,414 200,990 148,583
Profit before tax 10,297 5,627 21,286 16,713 12,074
Profit after tax 7,547 4,173 16,721 13,790 8,552
Dividends paid 7,996 11,038 14,209 13,682 6,698
Balance sheet summary
Equity
Share capital 4,363 4,363 4,363 4,363 4,363
Reserves 122,909 123,072 129,627 127,297 127,135
Total equity 127,272 127,435 133,990 131,660 131,498
Assets
Property, plant and equipment 78,410 66,123 61,799 60,353 62,801
Right-of-use assets 1,972 2,056 — — —
Financial assets — — — 356 396
80,382 68,179 61,799 60,709 63,197
Current assets 84,569 100,087 112,256 113,721 101,997
Total liabilities (37,679) (40,831) (40,065) (42,770) (33,696)
Net assets 127,272 127,435 133,990 131,660 131,498
Dividends and earnings
Pence per share declared (excluding special) 18.40 18.40 18.32 17.35 16.23
Number of times covered (dividend paid, excluding special) 0.9 0.5 2.2 1.9 1.3
Earnings per share – basic 17.36p 9.60p 38.45p 31.66p 19.60p
Earnings per share – diluted 17.25p 9.56p 38.32p 31.58p 19.57p
Castings P.L.C. Annual Report for the year ended 31 March 2026
67
Financial Statements
Parent Company Balance Sheet
as at 31 March 2026
Notes
2026
£000
2025
£000
ASSETS
Non-current assets
Property, plant and equipment 5 22,094 23,735
Investments 6 4,995 4,995
27,089 28,730
Current assets
Inventories 7 17,502 25,046
Trade and other receivables 8 38,250 35,573
Current tax assets 1,481 —
Cash and cash equivalents 7,676 7,052
64,909 67,671
Total assets 91,998 96,401
LIABILITIES
Current liabilities
Trade and other payables 9 13,898 18,050
Current tax liabilities — 174
13,898 18,224
Non-current liabilities
Deferred tax liabilities 11 1,497 1,638
Total liabilities 15,395 19,862
Net assets 76,603 76,539
Equity attributable to the equity holders of the company
Share capital 12 4,363 4,363
Share premium account 874 874
Treasury shares 13 (571) (627)
Other reserve 13 13
Retained earnings 71,924 71,916
Total shareholders’ funds 76,603 76,539
The company’s profit for the financial year was £7,913,000 (2025 – £6,592,000 ).
The parent company financial statements on pages 67 to 74 were approved and authorised for issue by the board of directors on 17 June 2026,
and were signed on its behalf by:
A. N. Jones
Chairman
S. J. Mant
Finance Director
Notes to the parent company financial statements are on pages 69 to 74.
Registered number – 91580.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
68
Castings P.L.C.
Parent Company Statement of Changes in Equity
for the year ended 31 March 2026
Equity attributable to equity holders of the parent
Share
capital
a)
£000
Share
premium
b)
£000
Treasury
shares
c)
£000
Other
reserve
d)
£000
Retained
earnings
e)
£000
Total
equity
£000
At 1 April 2025 4,363 874 (627) 13 71,916 76,539
Profit for the year and total comprehensive income for the
year — — — — 7,913 7,913
Shares acquired in the year — — — — — —
Equity-settled share-based payments — — — — 190 190
Own shares transferred on vesting — — 56 — — 56
Share option charge on vesting — — — — (99) `(99)
Dividends (see note 4) — — — — (7,996) (7,996)
At 31 March 2026 4,363 874 (571) 13 71,924 76,603
Equity attributable to equity holders of the parent
Share
capital
a)
£000
Share
premium
b)
£000
Treasury
shares
c)
£000
Other
reserve
d)
£000
Retained
earnings
e)
£000
Total
equity
£000
At 1 April 2024 4,363 874 (627) 13 76,217 80,840
Profit for the year and total comprehensive income for the
year — — — — 6,592 6,592
Shares acquired in the year — — — — — —
Equity-settled share-based payments — — — — 145 145
Dividends (see note 4) — — — — (11,038) (11,038)
At 31 March 2025 4,363 874 (627) 13 71,916 76,539
a) Share capital – The nominal value of allotted and fully paid up ordinary share capital in issue.
b) Share premium – Amount subscribed for share capital in excess of nominal value.
c) Treasury shares – Cost of shares acquired by the company.
d) Other reserve – Amounts transferred from share capital on redemption of issued shares.
e) Retained earnings – Cumulative net gains and losses recognised in the statement of comprehensive income.
Castings P.L.C. Annual Report for the year ended 31 March 2026
69
Financial Statements
Notes to the Parent Company Financial Statements
1 Accounting policies
General information
Castings Public Limited Company (the ‘company’, ‘Castings P.L.C.’) is incorporated and domiciled in the United Kingdom and registered in
England as a public company limited by shares. The company’s registered office is at Lichfield Road, Brownhills, West Midlands, WS8 6JZ,
United Kingdom. The company’s ordinary shares are listed on the London Stock Exchange. There has been no change in this information since
the Annual Report for the year ended 31 March 2025.
Basis of preparation
The financial statements have been prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice and Companies Act 2006) including Financial Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’). The
principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently
applied to all years presented, unless otherwise stated.
The financial statements have been prepared on a going concern basis and under the historical cost convention, except for the revaluation of
certain financial instruments, and in accordance with the Companies Act 2006. As permitted by FRS 101, the company has taken advantage of
certain disclosure exemptions available under that standard and, therefore, these financial statements do not include:
• certain comparative information otherwise required;
• certain disclosures regarding the company’s capital;
• a statement of cash flows;
• the effect of future accounting standards not yet adopted;
• the disclosure of the remuneration of key management personnel; and
• disclosure of related party transactions with other wholly owned members of the group headed by the company.
In addition, and in accordance with FRS 101, further disclosure exemptions have been adopted because equivalent disclosures are included in
the group financial statements. Therefore, these financial statements do not include certain disclosures in respect of financial instruments (other
than certain disclosures required as a result of recording instruments at fair value) and impairment of assets.
Going concern
In determining the basis of preparation for the financial statements, the directors have considered the group’s business activities as a whole.
Further details of the going concern assessment are set out in note 1 of the group financial statements.
Revenue recognition
Revenue is measured at the fair value of consideration received or receivable and represents amounts receivable for goods and services
provided in the normal course of business, net of VAT and other sales-related taxes. Revenue from the sale of goods relates to the sale of
castings. Revenue from the sale of services relates to machining and minor assembly work performed on a subcontract basis for external
customers. Revenue is recognised once the performance obligation has been met. This is deemed to be when the goods and services have
been collected by, or delivered to, the customer in accordance with the agreed delivery terms.
Post-retirement benefits
Two of the company’s pension plans are of a defined benefit type. Under IAS 19 Employee Benefits the employer’s portion of the current service
costs and curtailment gains are charged to operating profit for these plans, with the net interest also being charged/credited to operating
profit subject to the asset ceiling. Actuarial gains and losses are recognised in other comprehensive income and the balance sheet reflects the
schemes’ surplus or deficit at the balance sheet date. A full valuation is carried out triennially using the projected unit credit method. Where the
company cannot benefit from a scheme surplus in the form of refunds from the plans or reductions in future contributions, any asset resulting
from the above policy is restricted accordingly. Payments to the defined contribution scheme are charged to the consolidated statement of
comprehensive income as they become payable.
Inventories
The company’s inventories are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a weighted average
for raw materials. Work in progress and finished goods include labour and attributable production overheads based on normal levels of activity.
Provision is made for obsolete and slow-moving items based on a review of parts with no demand during the year.
Property, plant and equipment
Property, plant and equipment assets are held at cost less accumulated depreciation. Depreciation is provided on property, plant and equipment,
other than freehold land and assets in the course of construction, on a straight-line basis. The periods of write-off used are as follows:
i. Freehold buildings over 50 years.
ii. Plant and equipment over a period of 3 to 15 years.
The company annually reviews the assessment of residual values and useful lives in accordance with IAS 16.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
70
Castings P.L.C.
1 Accounting policies continued
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits at call with banks and other short-term highly liquid investments with original
maturities of three months or less from inception.
Foreign currencies
Assets and liabilities in foreign currencies are translated at the spot rates of exchange ruling at the balance sheet date. Transactions in
foreign currencies are recorded at the rate ruling at the date of the transaction; all differences are dealt with through the statement of
comprehensive income.
Financial instruments
a) Financial assets
The company classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was
acquired. The company’s accounting policy for each category is as follows:
Amortised cost
These assets are held in order to collect contractual cash flows, on specific dates, which are solely payments of the principal and interest on
the principal amount outstanding. They arise principally through the provision of goods and services to customers (e.g. trade receivables) and
deposits held at banks and building societies, but may also incorporate other types of contractual monetary asset. They are initially recognised
at fair value plus transaction costs that are directly attributable to the acquisition or issue and subsequently carried at amortised cost using the
effective interest rate method, less provision for impairment.
Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9 using the lifetime expected credit
losses. During this process the probability of the non-payment of the trade receivables is assessed. Where specific receivables are known to
be ‘bad’ or it becomes apparent that payment is ‘doubtful’ then a credit loss allowance of 100% is applied. Such provisions are recorded in
a separate allowance account with the loss being recognised within administrative expenses in the consolidated statement of comprehensive
income. On confirmation that the deposit or receivable will not be collectable, the gross carrying value of the asset is written off against the
associated provision.
b) Financial liabilities
The company classifies its financial liabilities into liabilities measured at amortised cost. Although the company uses derivative financial
instruments in economic hedges of currency risk, it does not hedge account for these transactions and the amounts are not material.
Financial liabilities measured at amortised cost
Financial liabilities include trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently
carried at amortised cost using the effective interest method.
Fair value is calculated by discounting estimated future cash flows using a market rate of interest.
c) Share capital
The company’s ordinary shares are classified as equity instruments. Share capital includes the nominal value of the shares.
d) Share premium
Share premium attaching to the company’s ordinary shares shares.
Current and deferred tax
Deferred tax is provided using the liability method. Deferred income tax assets are recognised to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilised.
Deferred tax is measured at the actual tax rates that are expected to apply in the periods in which the temporary differences are expected to
reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Current tax is provided for on the taxable profits of the company, using current tax rates and legislation that has been enacted or substantively
enacted by the balance sheet date.
Notes to the Parent Company Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
71
Financial Statements
Government grants - Research and Development Expenditure Credit (‘RDEC’)
RDEC is accounted for as a government grant under IAS20. It is recognised at fair value where there is reasonable assurance that the grant will
be received and the company complies with the attached conditions.
The credit is recognised in the period in which the qualifying expenditure is incurred.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends
are recognised when approved by the shareholders at an Annual General Meeting.
Share-based payments
The cost of equity-settled transactions with employees of the company is measured by reference to the fair value at the date at which they
are granted using the Black-Scholes model, taking into the account the two year holding period at the end of the vesting period. The cost is
recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award.
The amount recognised as an expense is adjusted to reflect the actual number of awards for which the related service conditions are met, such that
the amount ultimately recognised as an expense is based on the number of awards that meet the related service conditions at the vesting date.
Investments
Investments in subsidiaries are held at cost and reviewed for impairment annually in accordance with IAS 36 based on the presence of indicators
of impairment. This includes consideration of both external indicators (such as adverse market or economic changes) and internal indicators
(such as evidence of obsolescence or underperformance).
Material accounting estimates and judgements
The company makes certain estimates and judgements regarding the future. Estimates and judgements are continually evaluated based on
historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. In
the future, actual experience may differ from these estimates and judgements. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are set out on page 51 of the group
financial statements.
In addition, in accordance with IFRS9, an expected credit loss model is used to determine a credit loss provision against the carrying value of
amounts owed by subsidiary undertakings which requires estimation by management. The basis for any such provision would be based on the
balance owed, the probability of default and the loss estimated to arise if a default occurred.
2 Company profit and loss account
Castings P.L.C. has taken advantage of Section 408 of the Companies Act 2006 and has not included its own profit and loss account in these
financial statements. The company’s profit for the financial year was £7,913,000 (2025 – £6,592,000).
The profit and loss account includes £135,000 (2025 – £123,000) for audit fees.
The cost of inventories recognised as an expense during the year was £15,347,000 (2025 – £18,616,000 ).
3 Employee information
2026 2025
Average monthly number of employees during the year was:
Production 322 346
Management and administration 26 26
348 372
2026
£000
2025
£000
Staff costs (including directors) comprise:
Wages and salaries 18,189 18,060
Social security costs 2,450 2,002
Other pension costs 713 714
21,352 20,776
The directors represent the key management personnel. Details of their compensation are given in the Directors’ Remuneration Report on
page 35.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
72
Castings P.L.C.
4 Dividends
2026
£000
2025
£000
Final paid of 14.19p per share for the year ended 31 March 2025 (2024 – 14.19p) 6,167 6,167
Interim paid of 4.21p per share (2025 – 4.21p) 1,829 1,829
Supplementary dividend of nil p per share for the year ended 31 March 2025 (2024 – 7.00p) — 3,042
7,996 11,038
The directors are proposing a final dividend of 14.19 pence (2025 – 14.19 pence) per share totalling £6,169,354 (2025 – £6,166,700). This
dividend has not been accrued at the balance sheet date.
5 Property, plant and equipment
Freehold and
leasehold
land and
buildings
£000
Plant and
equipment
£000
Total
£000
Cost
At 1 April 2025 22,896 39,086 61,982
Additions during year — 182 182
Disposals — (5,824) (5,824)
At 31 March 2026 22,896 33,444 56,340
Accumulated depreciation
At 1 April 2025 6,449 31,798 38,247
Charge for year 417 1,406 1,823
Disposals — (5,824) (5,824)
At 31 March 2026 6,866 27,380 34,246
Net book values
At 31 March 2026 16,030 6,064 22,094
At 31 March 2025 16,447 7,288 23,735
The net book value of land and buildings includes £1,768,000 (2025 – £1,768,000) for land which is not depreciated.
6 Investments
2026
£000
2025
£000
Subsidiary companies
At cost 4,995 4,995
4,995 4,995
2026
£000
2025
£000
At 1 April 2025 4,995 4,995
Impairment losses — —
At 31 March 2026 4,995 4,995
The company owns 100% of the issued share capital of William Lee Limited, CNC Speedwell Limited, Ductile Castings Limited and W. H. Booth
& Co. Limited, companies which operate in the United Kingdom. William Lee Limited and Ductile Castings Limited both supply spheroidal
graphite iron castings and CNC Speedwell Limited is a machinist operation. W. H. Booth & Co. Limited does not trade and is dormant. The
registered office of William Lee Limited is Callywhite Lane, Dronfield, Sheffield, S18 2XU. The registered office for all other subsidiaries is Lichfield
Road, Brownhills, West Midlands, WS8 6JZ.
For the year ended 31 March 2026, Ductile Castings Limited is exempt from the requirements of the Companies Act 2006 relating to the audit of
individual financial statements by virtue of section 479A. As a result, the company guarantees all outstanding liabilities to which Ductile Castings
Limited is subject which total £1,136,000 (2025 – £1,013,000) at the year end.
Notes to the Parent Company Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
73
Financial Statements
7 Inventories
2026
£000
2025
£000
Raw materials 2,294 2,410
Work in progress 5,336 8,299
Finished goods 9,872 14,337
17,502 25,046
Inventories are net of impairment provisions of £139,000 (2025 – £192,000).
8 Trade and other receivables
2026
£000
2025
£000
Due within one year:
Trade receivables 25,118 27,816
Amounts owed by subsidiary companies 7,372 1,687
Other receivables 1,472 1,592
Receivable from pension schemes (see note 5 of group financial statements) 696 463
Prepayments and accrued income 3,592 4,015
38,250 35,573
Trade receivables are net of impairment provisions of £391,000 (2025 – £402,000). Loan amounts owed by subsidiary companies are interest
free and have no fixed repayment terms; trading balances are paid in accordance with normal payment terms. The directors consider that the
carrying value of amounts owed by group undertakings approximate to their fair values.
The parent company also holds material receivable balances with its subsidiaries for which the expected credit loss model is also used in
establishing a provision for impairment, in accordance with IFRS 9. Based on the financial strength and expected cash generation of the
subsidiaries, no such impairment provision is required at the reporting date (2025 – £nil).
9 Trade and other payables
2026
£000
2025
£000
Current trade and other payables
Trade payables 7,132 10,748
Amounts owed to subsidiary companies 2,553 2,800
Social security 878 654
Other payables 587 506
Accruals and deferred income 2,748 3,342
13,898 18,050
Amounts owed to subsidiary companies are interest free and have no fixed repayment terms.
10 Share-based payments
The disclosures in respect of share-based payments are set out in note 19 of the group financial statements.
11 Deferred tax liabilities
Deferred tax is calculated in full on temporary differences under the liability method using the large company tax rate applicable in future years of
25% (2025 – 25%). The movement on the deferred tax account is shown below:
Deferred tax liabilities
2026
£000
2025
£000
At 1 April 2025 1,638 1,181
Credited to other comprehensive income — —
(Credited)/charged to profit (141) 457
At 31 March 2026 1,497 1,638
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
74
Castings P.L.C.
11 Deferred tax liabilities continued
The movement in deferred tax liabilities during the year is shown below:
Deferred tax liabilities
Accelerated
tax
depreciation
£000
Other
£000
Total
£000
At 1 April 2025 1,760 (122) 1,638
(Credited)/charged to profit (162) 21 (141)
Credited to other comprehensive income — — —
At 31 March 2026 1,598 (101) 1,497
The movement in the deferred tax liabilities during the prior year is shown below:
Accelerated
tax
depreciation
£000
Other
£000
Total
£000
At 1 April 2024 1,190 (9) 1,181
Charged/(credited) to profit 570 (113) 457
Credited to other comprehensive income — — —
At 31 March 2025 1,760 (122) 1,638
12 Share capital
2026
£000
2025
£000
Allotted and fully paid 43,632,068 (2025 – 43,632,068) 10p ordinary shares 4,363 4,363
13 Treasury shares
2026 2025
Number £000 Number £000
At 1 April 2025 174,000 627 174,000 627
Shares re-issued to satisfy share options (18,703) (56) — —
At 31 March 2026 155,297 571 174,000 627
14 Pensions
Castings P.L.C. has no contractual agreement or stated policy for charging its subsidiary entities for the net defined benefit cost on an IAS 19
Employee Benefits measurement basis. Legally, Castings P.L.C. is the sponsoring employer for the plan, so it recognises the full defined benefit
cost or asset (where recoverable) in its financial statements. The last valuation was performed with the effective date of 6 April 2023. Further
details of the schemes are contained in note 5 to the group financial statements.
15 Capital commitments and contingencies
2026
£000
2025
£000
Contracted for but not provided in the financial statements — —
The company does not insure against the potential cost of product warranty or recall. Accordingly, there is always the possibility of claims
against the company for quality-related issues on parts supplied to customers. As at 31 March 2026, the directors do not consider any
significant liability will arise in respect of any such claims (2025 – £nil).
Notes to the Parent Company Financial Statements
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
75
Company Information
Notice of Meeting
Notice is hereby given that the one hundred and nineteenth Annual General Meeting of Castings P.L.C. (the ‘company’) will be held at Castings
P.L.C., Lichfield Road, Brownhills, WS8 6JZ on 20 August 2026 at 3.30 pm for the purposes set out below.
As ordinary business
1 To receive and adopt the Directors’ Report and audited financial statements for the year ended 31 March 2026.
2 To declare a final dividend.
3 To re-elect A. N. Jones as a director.
4 To re-elect A. Vicary as a director.
5 To re-elect S. J. Mant as a director.
6 To re-elect M. L. Smith as a director.
7 To re-elect S. R. Harrison as a director.
8 To approve the directors’ remuneration policy
9 To approve the Directors’ Remuneration Report for the year ended 31 March 2026.
10 To reappoint Forvis Mazars LLP as auditors of the company at a fee to be agreed with the directors.
As special business
To consider and, if thought fit, pass the following resolutions, of which resolution 11 will be proposed as an ordinary resolution and resolutions 12
and 13 will be proposed as special resolutions.
The share capital consists of 43,632,068 ordinary shares with voting rights.
As ordinary resolutions
11 THAT:
(a) the directors be and are hereby generally and unconditionally authorised in accordance with the Companies Act 2006 to exercise all
the powers of the company to allot relevant securities provided that the aggregate nominal value of such securities shall not exceed
£636,793, which represents approximately 14.6% of the current issued share capital of the company;
(b) the foregoing authority shall expire on 19 August 2031 save that the company may before such expiry make an offer or enter into an
agreement which would or might require relevant securities to be allotted after the expiry of such period and the directors may allot
relevant securities in pursuance of any such offer or agreement as if the authority conferred had not expired;
(c) the foregoing authority shall be in substitution for the authorities given to the directors under the Companies Act 2006 on
21 August 2025, which authorities are accordingly hereby revoked; and
(d) this authority will be put to annual shareholder approval.
As special resolutions
12 THAT the directors be and are hereby empowered pursuant to the Companies Act 2006 to allot equity securities (within the meaning of that
Act) for cash pursuant to the general authority conferred by the ordinary resolution numbered 11 set out in the notice convening this meeting
as if the said Act did not apply to any such allotment provided that this power shall be limited:
(a) to allotments in connection with an offer of equity securities to the ordinary shareholders of the Company where the securities
respectively attributable to the interests of such holders are proportionate (as nearly as may be and subject to such exclusions or other
arrangement as the directors may consider appropriate, necessary or expedient to deal with any fractional entitlements or with any
legal or practical difficulties in respect of overseas holders or otherwise) to the respective numbers of ordinary shares then held by such
shareholders; and
(b) to the allotment (otherwise than pursuant to subparagraph (a) of this resolution) of equity securities having, in the case of relevant
shares, an aggregate nominal amount, or, in the case of other equity securities, giving the right to subscribe for or convert into relevant
shares having an aggregate nominal amount not exceeding £218,160, which represents approximately 5% of the current issued share
capital of the company,
and shall expire at the conclusion of the next Annual General Meeting following the date of this resolution save that the company shall be
entitled before such expiry to make an offer or agreement which would or might require equity securities to be allotted after such expiry and
the directors shall be entitled to allot equity securities in pursuance of such offer or agreement as if the power conferred hereby had not
expired. In any three year period no more than 7.5% of the issued share capital will be issued on a pre-emptive basis.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
76
Castings P.L.C.
13 THAT the company be and is hereby generally and unconditionally authorised for the purposes of the Companies Act 2006 to make one or
more market purchases of any of its ordinary shares of 10p each (the ‘ordinary shares’), provided that:
(a) the maximum number of ordinary shares hereby authorised to be purchased is 4,358,844, representing 9.99% of the issued share
capital at 31 March 2026;
(b) the minimum price which may be paid for each ordinary share is 10p, exclusive of the expenses of purchase;
(c) the maximum price (exclusive of expenses) which may be paid for each ordinary share is an amount equal to 105% of the average of the
middle market quotations for the ordinary shares as derived from the Daily Official List of the London Stock Exchange Limited for the five
business days immediately preceding the day of purchase;
(d) unless previously revoked or varied, the authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of
the company following the date of this resolution, unless such authority is renewed on or prior to such date;
(e) the company may, before the expiry of this authority, conclude a contract to purchase ordinary shares under this authority which will or
may be executed wholly or partly after such expiry and may make a purchase of ordinary shares pursuant to any such contract, as if
such authority had not expired.
The record date for payment of the final dividend is 24 July 2026. Assuming the final dividend is approved by the members, the dividend will be
paid on 25 August 2026.
Information about the meeting can be found on the company’s website (www.castings.plc.uk). The right to vote at the meeting is determined by
reference to the register of members as it stands on 17 August 2026.
By order of the board
S. J. Mant
Company Secretary
Registered Office:
Lichfield Road, Brownhills,
West Midlands, WS8 6JZ
17 June 2026
Note 1 - Proxy voting
Any member of the company entitled to attend and vote at this meeting may appoint one or more proxies, who need not also be a member, to
attend and vote, on a poll, in their stead. The instrument appointing a proxy, including authority under which it is signed (or a notarially certified
copy of such authority), must be deposited at the offices of the company’s registrars: MUFG Corporate Markets, PXS 1, Central Square,
29 Wellington Street, Leeds, LS1 4DL, not less than 48 hours before the time appointed for the meeting. Unless otherwise indicated on the
Form of Proxy, CREST, Proxymity or any other electronic voting instruction, the proxy will vote as they think fit or, at their discretion, withhold
from voting.
Shareholders can vote electronically via the Investor Centre, a free app for smartphone and tablet provided by MUFG Corporate Markets (the
company’s registrar). It allows you to securely manage and monitor your shareholdings in real time, take part in online voting, keep your details
up to date, access a range of information including payment history and much more. The app is available to download on both the Apple App
Store and Google Play, or by scanning the relevant QR code below. Alternatively, you may access the Investor Centre via a web browser at:
https://uk.investorcentre.mpms.mufg.com/
In order to revoke a proxy instruction you will need to inform the Company by sending a signed hard copy notice clearly stating your intention to
revoke your proxy appointment to MUFG Corporate Markets, at PXS 1, Central Square, 29 Wellington Street, Leeds, LS1 4DL. The revocation
notice must be received by MUFG Corporate Markets no later than 48 hours before the meeting.
Notice of Meeting
continued
Castings P.L.C. Annual Report for the year ended 31 March 2026
77
Company Information
Note 1 - Proxy voting Continued
If you need help with voting online, or require a hard copy Form of Proxy, please contact our Registrar, MUFG Corporate Markets by email at
shareholderenquiries@cm.mpms.mufg.com, or you may call on 0371 664 0391. Calls are charged at the standard geographic rate and will
vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 09:00 - 17:30,
Monday to Friday excluding public holidays in England and Wales.
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the meeting
(and any adjournment of the meeting) by using the procedures described in the CREST manual (available from www.euroclear.com). CREST
personal members or other CREST sponsored members, and those CREST members who have appointed a service provider(s), should refer to
their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.
In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST message (a ‘CREST Proxy
Instruction’) must be properly authenticated in accordance with Euroclear UK & International Limited’s specifications and must contain the
information required for such instructions, as described in the CREST manual. The message must be transmitted so as to be received by the
issuer’s agent (ID RA10) by 3.30 pm on 18 August 2026. For this purpose, the time of receipt will be taken to mean the time (as determined by
the timestamp applied to the message by the CREST application host) from which the issuer’s agent is able to retrieve the message by enquiry
to CREST in the manner prescribed by CREST. After this time, any change of instructions to proxies appointed through CREST should be
communicated to the appointee through other means.
CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear UK & International Limited
does not make available special procedures in CREST for any particular message. Normal system timings and limitations will, therefore, apply in
relation to the input of CREST proxy instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a
CREST personal member, or sponsored member, or has appointed a voting service provider(s), to procure that their CREST sponsor or voting
service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any
particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting system providers are referred, in
particular, to those sections of the CREST manual concerning practical limitations of the CREST system and timings. The company may treat as
invalid a CREST proxy instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
If you are an institutional investor you may also be able to appoint a proxy electronically via the Proxymity platform, a process which has been
agreed by the Company and approved by the Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your
proxy must be lodged by 3.30 pm on 18 August 2026 in order to be considered valid or, if the meeting is adjourned, by the time which is 48
hours before the time of the adjourned meeting. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you read these carefully as you will be bound by them and they will govern the electronic
appointment of your proxy. An electronic proxy appointment via the Proxymity platform may be revoked completely by sending an authenticated
message via the platform instructing the removal of your proxy vote.
Note 2 - Beneficial owners
In accordance with Section 325 of the Companies Act 2006, the right to appoint proxies does not apply to persons nominated to receive
information rights under Section 146 of the Act.
Persons nominated to receive information rights under Section 146 of the Act who have been sent a copy of this notice of meeting are hereby
informed, in accordance with Section 149 (2) of the Act, that they may have a right under an agreement with the registered member by whom
they were nominated to be appointed, or to have someone else appointed, as a proxy for this meeting. If they have no such right, or do not wish
to exercise it, they may have a right under such an agreement to give instructions to the member as to the exercise of voting rights.
Nominated persons should contact the registered member by whom they were nominated in respect of these arrangements.
In accordance with Regulation 41 of the Uncertified Securities Regulations 2001, only those members entered on the company’s register
of members at the close of business on the day which is two working days before the day of the meeting or, if the meeting is adjourned,
shareholders entered on the company’s register of members at the close of business on the day two days before the date of any adjournment
shall be entitled to attend and vote at the meeting.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
78
Castings P.L.C.
Directors, Officers and Advisers
Directors
A. N. Jones, BA (Hons), FCA Independent Non-executive Chairman
A. Vicary, BEng, MSc, FICME Chief Executive Officer
S. J. Mant, BCom (Hons) FCA Finance Director
M. L. Smith, BA Econ (Hons), FCA Senior Independent Non-executive
S. R. Harrison, BA (Hons), MBA, Independent Non-executive
Secretary and
Registered Office
S. J. Mant, FCA
Lichfield Road,
Brownhills,
West Midlands, WS8 6JZ
Tel: 01543 374341
Fax: 01543 377483
Web: www.castings.plc.uk
Registrars
MUFG Corporate Markets
10th Floor,
Central Square,
29 Wellington Street,
Leeds, LS1 4DL
Tel: 0371 664 0300 (Calls are charged at the standard
geographic rate and will vary by provider. Calls outside
the UK will be charged at the applicable international rate.
Lines are open 9.00 am to 5.30 pm Mon – Fri)
Email: shareholderenquiries@linkgroup.co.uk
Auditor
Forvis Mazars LLP
Three Chamberlain Square,
Birmingham, B3 3AX
Solicitors
Pinsent Masons LLP
55 Colmore Row,
Birmingham, B3 2FG
Bankers
HSBC Bank plc
49 Market Street,
Lichfield,
Staffordshire, WS13 6LB
Stockbrokers
Canaccord Genuity Limited
88 Wood Street
London
EC2V 7QR
Zeus Capital Limited
125 Old Broad Street
London
EC4N 1AR
Registered No.
91580
Castings P.L.C. Annual Report for the year ended 31 March 2026
79
Company Information
Shareholder Information
Capital gains tax
The official price of Castings P.L.C. ordinary shares on 31 March 1982, adjusted for bonus issues, was 4.92 pence.
Warning to shareholders
The following guidance has been issued by the Financial Conduct Authority:
Over the last year many companies have become aware that their shareholders have received unsolicited phone calls or correspondence
concerning investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders offering to sell them what often
turn out to be worthless or high risk shares in US or UK investments. They can be very persistent and extremely persuasive and a 2006 survey
by the then Financial Services Authority (FSA) has reported that the average amount lost by investors is around £20,000. It is not just the novice
investor that has been duped in this way; many of the victims had been successfully investing for several years. Shareholders are advised to be
very wary of any unsolicited advice, offers to buy shares at a discount or offers of free reports into the company.
If you receive any unsolicited investment advice:
• Make sure you get the correct name of the person and organisation.
• Check that they are properly authorised by the FCA before getting involved. You can check at http://www.fca.org.uk/register/
• The FCA also maintains on its website a list of unauthorised overseas firms who are targeting, or have targeted, UK investors and any
approach from such organisations should be reported to the FCA so that this list can be kept up to date and any other appropriate action
can be considered. If you deal with an unauthorised firm, you would not be eligible to receive payment under the Financial Services
Compensation Scheme.
• If the calls persist, hang up.
More detailed information on this or similar activity can be found on the FCA website www.fca.org.uk/consumers/scams
Website
Castings P.L.C.’s website www.castings.plc.uk gives additional information on the group. Notwithstanding the references we make in this Annual
Report to Castings P.L.C.’s website, none of the information made available on the website constitutes part of this Annual Report or shall be
deemed to be incorporated by reference herein.
Castings P.L.C.
Castings P.L.C. Annual Report for the year ended 31 March 2026
80
Castings P.L.C.
The production of this report supports the work of the
Woodland Trust, the UK’s leading woodland conservation
charity. Each tree planted will grow into a vital carbon store,
helping to reduce environmental impact as well as creating
natural havens for wildlife and people.
Castings P.L.C. Annual Report for the year ended 31 March 2026
81
Company Information
Castings P.L.C.
Lichfield Road
Brownhills
West Midlands
WS8 6JZ