Castings PLC Trading Update and AGM Resolution Votes Update (4024Q)
February 26 2021 - 1:00AM
UK Regulatory
TIDMCGS
RNS Number : 4024Q
Castings PLC
26 February 2021
Castings plc
Trading Update, Notice of Results and Update on AGM Resolution
Votes
Castings PLC announces a trading update in respect of the year
ending 31 March 2021.
We reported in November 2020 that demand from the commercial
vehicle sector had increased to approximately 85% of pre-Covid
output levels with forward schedules at that time suggesting a
return to 100%. It is pleasing to report that monthly demand has
been running ahead of pre-Covid levels with minimal disruption
following the end of the Brexit transition period. However,
short-term demand schedules have been tempered slightly as OEMs
seek to manage supply constraints on certain components,
particularly semiconductors.
Whilst demand has improved, production has been hampered by the
need for more employees to self-isolate as UK Covid cases increased
around the turn of the year; thankfully this now appears to have
subsided. Furthermore, we have seen significant increases in raw
material prices in the last two months which, due to the nature of
the price escalator mechanism, will not be recovered in the selling
price until the next financial year.
Overall the results for the year are anticipated to be in line
with market expectations.
Notice of Results
The group intends to announce its results for the year ending 31
March 2021 on 16 June 2021.
Update on AGM Resolution Votes
At the AGM held on 13 August 2020, resolutions to approve the
new Remuneration Policy and Restricted Share Plan were passed with
76.8% of votes cast being in favour. Following the AGM, as required
by the Combined Code, the Chairman of the Remuneration Committee
wrote to the shareholders who had cast the majority of votes
against the resolutions in order to understand the reasons behind
their votes. From responses received, it appears that certain
shareholders were voting in accordance with recommendations made by
Institutional Shareholder Services, a proxy advisory organisation
('ISS'), which advised against support of the resolutions on the
grounds that the Restricted Share Plan provides for vesting of
shares subject only to continuing employment and does not impose
performance hurdles.
When developing the Restricted Share Plan, the Remuneration
Committee took external advice and considered the possibility of
imposing vesting conditions in line with ISS's policy. The
Committee remains of the view that, taking into account the overall
structure of executive remuneration and the desire to avoid a
complicated scheme, the simple and relatively modest form of plan
approved by shareholders at the AGM is in line with the Group's
culture and serves its best interests.
S J Mant, Director and Company Secretary
Castings plc, Lichfield Road, Brownhills, West Midlands WS8
6JZ
26 February 2021
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END
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