Final Results

Chamberlin & Hill PLC
27 May 2004


CHAMBERLIN & HILL PLC

PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED
31 MARCH 2004

Highlights

- Pre-tax profit increased from £0.9 million to £1.0 million

- Dividend maintained at 11.85p per share

- Strong balance sheet

- Acquisition of Russell Castings completed on 2 April 2004

Chairman's Statement

In our Interim Announcement in November we commented on our experience of slow
markets and that we expected further consolidation within the foundry sector.
Activity continued at a disappointingly low level until the end of January but
since that time we have experienced some improvement in general demand. In
addition to this there have been a number of foundry closures which have
benefited our order books. However at the same time we have experienced very
significant increases in the price of ferrous raw materials, driven by rapidly
escalating global prices, and it has been difficult to achieve timely price
rises from our customers to adequately compensate for these.

Overall, turnover for the year was 1% higher than in 2003 at £27.31m. Operating
profit was reduced to £1.007m (£1.373m previously), largely due to pressure on
margins resulting from the raw material price rises referred to above. Profit
before tax was £1.013m compared to £0.908m previously. Earnings per share were
9.6p (9.0p previously). The Balance Sheet remains strong with net cash of
£482,000 (£692,000 previously) at the year end. The Directors are recommending
an unchanged final dividend of 8.00p, making a total for the year of 11.85p
(2003: 11.85p)

We announced in March our agreement to purchase certain assets and the business
of Russell Castings in Leicester. Following shareholder approval at our EGM on
2nd April we completed this transaction, significantly extending our foundry
operations. We are exploring the synergy opportunities for Russell Castings with
our existing foundries and are pleased to be joined by an excellent team that
will complement our existing staff.

For the first time for some while all of the foundry sites are now operating at
budgeted levels of volume, although the problem of rising raw material prices
has continued. We have also seen some improvement in demand for our safety and
security products, albeit of a more modest amount. Overall we expect to see a
return to growth in the year ahead aided by Russells, although as indicated in
the circular posted to shareholders at the time of the acquisition, some
non-recurring restructuring costs are anticipated in order to maximise the
opportunities available.

TOM BROWN
Chairman

Consolidated profit and loss account for the year ended 31 March 2004

                                                      2004              2003
                                                      £000              £000
Turnover                                            27,311            27,027
                                                    ======            ======

Operating profit                                     1,007             1,373
Exceptional item - restructuring costs                   -              (451)
                                                  --------          --------
Operating profit after exceptional item              1,007               922
Interest (payable)/receivable                            6               (14)
                                                   -------          --------
Profit on ordinary activities before taxation        1,013               908
Taxation                                              (306)             (250)
                                                  --------          --------
Profit after taxation                                  707               658
Dividend                                              (871)             (871)
                                                  --------          --------
Retained (loss)/profit                                (164)             (213)
                                                  ========          ========

Earnings per share - basic                             9.6p              9.0p
                   - adjusted                          9.6p             13.3p
                   - diluted                           9.6p              9.0p

Dividend per share: proposed final                    8.00p             8.00p
interim already paid                                  3.85p             3.85p



Consolidated balance sheet as at 31 March 2004

                                        As at                    As at
                                    31 March 2004            31 March 2003
                                   £000         £000        £000          £000
Fixed assets
Tangible assets                   8,770                    9,045
Intangible assets                   201        8,971         215         9,260
                                -------                  -------

Current assets
Stock                             3,496                    3,282
Debtors                           6,656                    5,623
Cash at bank and in hand            482                      692
                                -------                  -------
                                 10,634                    9,597
Creditors - under one year       (5,389)                  (4,449)
                                -------                  -------
Net current assets                             5,245                     5,148

Provisions                                      (734)                      (762)
                                             -------                    -------
Net assets                                    13,482                     13,646
                                             =======                    =======

Capital and reserves
Called up share capital                        1,835                     1,835
Share premium account                            718                       718
Reserves                                      10,929                    11,093
                                             -------                   -------
Shareholders' funds                           13,482                    13,646
                                             =======                   =======

Reconciliation of movement in shareholders' funds

                                                         2004            2003
                                                         £000            £000
Profit for the year                                       707             658
Dividends                                                (871)           (871)
Issue of share capital                                      -              30
                                                      -------         -------
Net movement in the year                                 (164)           (183)
Opening shareholders' funds                            13,646          13,829
                                                      -------         -------
Closing shareholders' funds                            13,482          13,646
                                                      =======         =======

Consolidated cash flow statement for the year ended 31 March 2004

                                                         2004            2003
                                                         £000            £000
Net cash inflow from operating activities               2,001           3,218
Return on investments and servicing of finance              6             (14)
Taxation paid                                            (247)           (679)
Net capital expenditure and financial investment       (1,098)         (1,619)
Dividends paid                                           (871)           (870)
                                                      -------        --------
Net cash flow before financing                           (209)             36
Financing: issue of shares (including premium)              -              30
                                                      -------         -------
(Decrease)/increase in cash and bank balances            (209)             66
                                                      =======         =======

Reconciliation of operating profit to net cash flow from operating activities

                                                        2004             2003
                                                        £000             £000
Operating profit                                       1,007            1,373
Exceptional item - restructuring costs                     -             (451)
Depreciation                                           1,377            1,542
Amortisation of goodwill                                  14               14
Profit on disposals                                       (4)             (76)
Government grants credited                                (3)              (5)
(Increase)/decrease in stocks                           (214)              80
(Increase)/decrease in debtors                        (1,033)           1,011
Increase/(decrease) in creditors                         857             (270)
                                                     -------          -------
                                                       2,001            3,218
                                                     =======          =======

Notes:

 1. The results for the year to 31 March 2004 have been extracted from the
    financial statements for the year which have been audited and will be filed
    with the Registrar of Companies. The results for the year to 31 March 2003
    are an abridged version of the Company's full accounts for that year which
    have been filed with the Registrar of Companies. The auditors' opinion on
    those accounts was unqualified and did not include a statement under Section
    237(2) or (3) of the Companies Act.

 2. The calculation of basic earnings per share is based on a profit of £707,000
    (2003: £658,000) and a weighted average of 7,340,908 shares (2003:
    7,336,439) in issue during the period. Adjusted earnings per share in the
    year ended 31 March 2003 is after adding back the effect of the exceptional
    item which was £316,000 (net of tax).

 3. The full published accounts will again include the transitional provisions of
    FRS17 (Retirement Benefits) and this will consequently not impact on the
    2003/2004 figures. If FRS17 had been fully adopted during the year, the
    Group would have recorded an reduced net liability in its balance sheet of
    £2.00 million, down from £2.97 million last year.

 4. A copy of the Annual Report and Accounts for the year ended 31 March 2004
    will be posted to shareholders in the week commencing 28 June 2004. The
    Annual General Meeting will be held on Friday, 30 July 2004.

 5. Subject to shareholders' approval at the Annual General Meeting, the dividend
    will be paid on 30 July 2004 to ordinary shareholders registered at the
    close of business on Friday, 2 July 2004.




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