LONDON (Alliance News) - Castings and engineering group Chamberlin PLC on Tuesday reported a slightly wider pretax loss for the first half of its financial year as revenue declined due to troubles with its foundry in Leicester, which it recently announced will be closed down.
Chamberlin said it made a pretax loss of GBP391,000 in the six months to the end of September, widened from GBP367,000 a year prior but in line with the company's expectations.
Revenue slipped to GBP16.4 million from GBP18.0 million, mainly due to softness at its Leicester foundry. The company announced earlier this month the Leicester site, which makes mid-size castings, will cease production and be wound down by the end of the year due to ongoing weak demand for its products.
The company said revenue for its Engineering division grew 8.2% in the period, and it has started an investment programme to upgrade machinery at its flagship foundry in Walsall.
"Results for the first half are in line with management expectations and reflect the anticipated picture across our foundry activities," said Chamberlin Chairman Keith Butler-Wheelhouse.
"Looking ahead, we believe that the group remains well placed to achieve existing market expectations of underlying profitability for the financial year. We also remain very encouraged about prospects for an upward trajectory in performance, underpinned by the major contract wins at Walsall which will enter production in January 2017," he added.
Chamberlin shares were down 1.6% to 63.50 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Chamberlin Plc (CMH)