Castings warns of softness since Brexit vote

Foundry operator and machining group Castings has suffered from a softening in demand in recent weeks but the full effect of the post-Brexit market had yet to become fully clear.

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Ahead of the company's annual shareholder meeting, a statement was issued from chairman Brian Cooke that revealed "a softening in demand from our main customers" since results were issued in June.

Castings' iron castings are mostly exported internationally, with 80% of production sold to markets around the world, with 80% of production supplied directly to multinational constructors of commercial vehicles and cars.

Cooke said that plans to fill the profit gap created by the ending of a major machining contract remained on course, with improvements still expected from 2017/18.

"We continue to invest in production techniques and technologies to ensure we remain as market leaders and maintain our competitiveness in a post-Brexit marketplace," he said.

"The referendum result has given rise to uncertainty and it will take time to gauge the effect this may have on the company."

Castings shares were down 3.5% to 439p by lunchtime on Tuesday.