Cost-cutting measures have helped Midland engineering firm Castings to post a profits rise despite a 28 per cent fall in sales.
The Brownhills-based foundries company saw sales plummet from £84.8 million in the year to March 2009 to £60.6 million this financial year after a slump in demand.
However, an efficiency drive – which has included making many of its staff redundant – helped the company cut costs by more than £21 million, and as a result it turned a pre-tax profit of £9.8 million.
That compares to a pre-tax profit of £3.6 million the year before.
The company announced 350 redundancies last year after a 78 per cent fall in profits, but chairman Brian Cooke said an upturn in fortunes had meant it was now able to start taking some back on again.
He said: “We are encouraged by the recent improvement in demand, but with world economic problems, it is impossible to predict the future.
“However, the company has also shown its capability in managing the business in difficult times and is well prepared for any further upturn in activity.”
Mr Cooke said in terms of foundry production the company is now operating at about 80 per cent of its previous level.
Its CNC Speedwell business has been through a “very difficult time” he said, due to the high cost of capital expenditure and low demands from its major customers, but Mr Cooke said there had been evidence of improved demand.
The company also revealed that Chris Roby will be retiring as financial director later in the year, and Steve Mant has been appointed to replace him.