(Alliance News) - Chamberlin PLC shares fell on Wednesday, after results in its most recent quarter were below expectations.
Shares were down 22% to 1.28 pence each in London on Wednesday morning.
The specialist castings and engineering group based in Walsall, West Midlands issued a trading update on the three month period ended February 29. The company's financial year runs to May 31.
Underlying demand across Chamberlin during its financial third quarter was below management's expectations.
"Schedules over the period were lower than previously forecast by our customers and were further impacted by delays with the startup of certain new programs," the company said.
It noted that lower sales during the third quarter of financial 2024 have hurt profitability and working capital.
Chamberlin said the slowdown has started to improve during the fourth quarter and customer schedules are recovering to a more normalised and stable level, with a strong uptick in demand forecast.
"Following a full strategic review, a program of cost reduction actions have been implemented across the group including labour reductions, short time working (as required) and senior management restructuring. Alongside this, the company has conducted a full review of product margins and implemented price increases accordingly to underpin the required profitability and cash generation," Chamberlin said.
The company is expected to benefit from these actions within three months and "create a more robust level of profitability going forward."
By Sophie Rose, Alliance News senior reporter
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Chamberlin Plc (CMH)