LONDON (Alliance News) - Castings and engineering company Chamberlin PLC Tuesday said it swung to profit in the financial year to the end of March as sales improved and its cut costs, though it cautioned trading in the current financial year has been subdued.
Chamberlin said its pretax profit for the year was GBP0.1 million, compared with a GBP2.8 million loss a year earlier, as revenue rose 5.9% to GBP40.8 million from GBP38.6 million.
"The improvement can be principally attributed to actions taken by management to address the cost base, a strong performance from our Walsall foundry, which saw improved conditions in the turbocharger bearing housing market, and improved sales and profits from the engineering division," said Keith Butler-Wheelhouse, Chamberlin's chief executive.
"The group's performance in the second half and beyond will be supported by the new contract wins and continuing progress at the engineering division. However, we are mindful of the current weak euro exchange rate which creates a significant headwind for the current year," Butler-Wheelhouse added.
Chamberlin added that there remains work to be done on improving its operations, with a focus now on its Scunthorpe and Leicester foundries. It added demand has been subdued in the first few months of the new financial year.
Shares in Chamberlin were down 1.8% to 83.00 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Chamberlin Plc (CMH)