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(Alliance News) - Chamberlin PLC on Tuesday reported its first post-tax profit in five years, due to a tax credit, leading to a rise in its share price.
Shares in the castings and engineering firm were up 18% at 7.50 pence each on Tuesday morning in London.
The West Midlands-based company reported a narrowed pretax loss of GBP86,000 in the six months to September 30 from GBP558,000 a year prior.
Chamberlin explained that the improvement was driven by substantially improved operating profit from Russell Ductile Castings Ltd and Petrel Ltd.
The company also chopped operating expenses to GBP1.4 million, improved 30% from GBP2.0 million.
Furthermore, the engineering firm received a tax credit of GBP188,000, versus a tax payment of GBP104,000 a year prior.
This lead to a profit after tax for the first time in five years, of GBP102,000 from a loss of GBP662,000 a year ago.
Revenue was GBP8.0 million, down 27% from GBP11.0 million a year before, but cost of sales dropped by almost the same amount.
Chamberlin attributed the revenue fall to the loss of major customer BorgWarner Inc.
Nonetheless, the company said the lost client was offset by the strong growth in Russell Ductile Castings and Petrel, as well as initial revenue from new e-commerce brands Emba cookware and Iron Foundry Weights.
"I am delighted to report that the difficulties of the past 18 months are now largely behind us. The actions taken by the company in the first half have stabilised the group and delivered a profit after tax for the first time in five years. Chamberlin is now well placed to deliver profitable growth in the second half, driven by a new strategic direction into expanding markets across all our businesses," Chair Keith Butler-Wheelhouse commented.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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