Last checked at 9 Jul 2021 07:00
9 July 2021
Chamberlin plc
("Chamberlin" or the "Group")
Operational Update
Chamberlin (AIM: CMH.L), the specialist castings and engineering group, is pleased to provide the following trading update.
Following the loss of the BorgWarner contract late last year, and the consequential restructuring of operations and refinancing previously announced, Chamberlin will report a loss for the extended accounting period ended 31 May 2021. The Board is confident that as the substantial majority of the Group's restructuring costs and non-cash write downs will have been accounted for in the year ended 31 May 2021, Chamberlin will be well positioned to make a strong recovery in the new financial year which commenced on 1 June 2021.
As previously announced, we have initiated a number of business development initiatives at Chamberlin & Hill ("C&H") to diversify the customer portfolio in order to reduce reliance on the automotive sector. The main thrust of these initiatives are in the area of new consumer products where we have technical and design advantages where these can be sold primarily via ecommerce direct to the consumer. We have already received considerable interest in our growing gym equipment range and now are preparing to launch a range of premium quality cast iron cookware for distribution across Europe. We are pleased to be the only British foundry producing many of these new consumer products.
The Board is pleased to report the strengthening performance of Petrel, which is broadening its scope to include product hire and the provision of support services for new and existing safety lighting installations.
Russel Ductile Castings continues to outperform the Board's expectations and the Board sees great scope for further growth and improved profitability in the current financial year. Its growing success is largely driven by a lack of competition in the UK foundry industry for niche, low-volume, large capacity castings.
With revenues now stable, costs realigned to reflect the current operating base across the Group and exciting new potential growth opportunities, the Board anticipates that Chamberlin will see a return to profitability in the current financial year.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.
Enquiries:
Chamberlin plc Kevin Price, Chief Executive Alan Tomlinson, Finance Director | T: 01922 707100 | |
Cenkos Securities plc (Nominated Adviser and Joint Broker) Katy Birkin Stephen Keys
| T: 020 7397 8900 | |
Peterhouse Capital Limited (Joint Broker) Peter Greensmith Duncan Vasey | T: 020 7469 0930 |