LONDON (Alliance News) - Chamberlin PLC on Tuesday warned on its full-year outlook after its performance in the first half was hit by tough trading conditions and a hit from the weakness of the euro, with the specialist castings and engineering company swinging to a loss.
The company reported a pretax loss of GBP426,000 in the six months ended September 30, compared with a pretax profit of GBP279,000 in the corresponding half the prior year, as revenue fell to GBP18.0 million from GBP21.1 million, operating expenses came down to GBP3.4 million from GBP3.5 million, and finance costs fell to GBP103,000 from GBP176,000.
Underlying profit, which is stated before net financing costs on pension obligations, administration costs of the pension scheme, exceptional costs, share-based payment costs and associated tax, fell to GBP57,000 from GBP426,000. The company took a hit of about GBP600,000 from the weakness of the euro.
"Looking ahead, given the current tough trading environment, the board expects underlying profitability for the current financial year to be below the GBP0.8 million achieved in the prior financial year," Chairman Keith Butler-Wheelhouse said in a statement.
"However, we anticipate the profit outlook for the next financial year to March 31, 2017 to recover, with the major contract wins at Walsall expected to enter into production in 2016. The measures we have taken to achieve cost efficiencies and improve processes also leave the group better positioned to win profitable revenue growth," Butler-Wheelhouse added.
Shares in Chamberling were down 14% at 67.50 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Chamberlin Plc (CMH)