Half-year Report

RNS Number : 3573L

Chamberlin PLC

24 December 2018

 

24 December 2018

AIM: CMH

CHAMBERLIN PLC

("Chamberlin" or "the Company" or "the Group")

Half Year Results*

For the six months to 30 September 2018

Key Points

·      Group continuing revenues for six months to September 2018 rose by 21.3% to £17.4m (2017**: £14.3m), mainly reflecting increased production volumes of turbo charger bearing housings.

·      Gross margin at 12.6% (preceding six months to 31 March 2018: 17.9% and six months to 30 Sept 2017: 15.9%) was affected by excess cost and production inefficiencies.

·      Underlying loss before tax reduced by 40.5% to £485,000 (2017**: loss of £816,000). Statutory loss before tax decreased by 68.9% to £166,000 (2017: loss of £534,000).

·      Statutory loss per share decreased to 3.34p (2017**: loss of 13.81p).

·      Foundries revenues up by 24.0% to £15.4m:

-    demand for turbo charger bearing housings rose, as expected

-    machining facility contributed incremental revenues of £2.8m (2017: £0.8m)

·    Engineering revenues up by 3.3% to £1.9m.

·      Post period, as announced on 20 December 2018, the Group completed the sale of Exidor, its Cannock-based engineering business, for a consideration of £10m in cash to ASSA ABLOY Limited.

·      Volume-related inefficiencies in the foundry division are now resolved and the Group is expected to deliver an improved performance in the second half of the financial year although the trading backdrop is difficult.

Notes

*The results for the six months to 30 September 2018 are stated on a continuing basis

**The comparative figures for 2017 have been restated to reflect the presentation of Exidor as a discontinued operation.

Chairman, Keith Butler-Wheelhouse, commented: 

"Production volumes at our foundry operations rose significantly over the period, reflecting the ramping up of major contracts and the increasing use of turbo chargers in both hybrid vehicles and petrol engine cars to improve fuel efficiency. However, while revenues rose strongly, foundry margins were significantly affected by production issues.  These volume-related inefficiencies have now been addressed and the Group is expected to deliver an improved performance in the second half although the trading backdrop is difficult.

 The recently completed sale of the Exidor engineering business has significantly strengthened the Group's financial position, reducing both net debt and pension liabilities and providing additional working capital, and we remain focused on the further development of our core operations."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014

 

Enquiries

Chamberlin plc Kevin Nolan, Chief Executive Neil Davies, Finance Director		T: 01922 707100
Cenkos Securities plc (Nominated Adviser and Broker) Russell Cook, Katy Birkin		T: 020 7397 8900
KTZ Communications (Financial PR) Katie Tzouliadis, Emma Pearson, Dan Mahoney		T: 020 3178 6378

 

CHAIRMAN'S STATEMENT

Introduction

Revenues in the first six months of the financial year were sharply higher than the same period last year as production volumes at our core foundry increased and our engineering business also performed well. However, the Group's overall margin was adversely affected by excess cost and production inefficiency in the foundries division. These volume-related inefficiencies in the foundry division are now resolved and the Group is expected to deliver an improved performance in the second half of the financial year although the trading backdrop is difficult. 

Results

The Group's continuing revenues increased by 21.3% to £17.4m in the six months to September 2018 (2017: £14.3m). This substantial rise was driven mainly by the expected increase in production volumes for turbo charger bearing housings.

While gross profit increased by 18.7% to £2.2m (2017: £1.8m), cost inefficiencies within our foundry operation, principally associated with the ramp up of production volumes, depressed this result, with gross margin at 12.6%. This compares to gross margin of 17.9% in the preceding six months to 31 March 2018.

The underlying loss before tax reduced by 40.5% to £485,000 (2017: loss of £816,000).

On a statutory basis, the loss before tax of £608,000 showed a significant turnaround against the same period in the prior year (2017: loss before tax of £1,052,000). The loss is after impairment of deferred tax assets of nil (2017: £374,000). The statutory loss per share was 3.34p (2017: loss of 13.81p).

The net debt position following the receipt of the proceeds of the sale of Exidor is £3.7m. The net debt position at 30 September 2018 was £10.4m (30 September 2017: £8.2m; 31 March 2018: £8.9m). 

Pension

The Group's net pension liability has decreased by 20% to £4.0m (31 March 2018: £5.0m). This was due to a reduction in the value of liabilities as a consequence of an increase in bond yields and therefore the discount rate.  Following the sale of Exidor, the net pension liability has further reduced to £1.5m. 

Operations

The two foundries, at Walsall and Scunthorpe, generated combined revenues of £15.4m (2017: £12.4m) over the first half, a rise of 24.0% over the same period last year and moved from an operating loss to a breakeven operating profit position of £0.1m (2017: loss of £0.2m). 

As expected, the new machining facility at Walsall contributed significantly increased higher revenues, of £2.8m (2017: £0.8m).  The increased revenues generated by our foundry operations reflect the benefits of contracts won to supply turbo charger bearing housings. These are increasingly being used to maximise fuel efficiency of both petrol and hybrid vehicle engines. Hybrid vehicles typically incorporate smaller petrol engines with two turbo chargers in many cases.

The production issues which impacted margins have been addressed and we therefore expect to deliver an improved performance in the second half although the trading backdrop is difficult.   

Following the recent sale of Exidor, the engineering division now comprises Petrel, which manufactures lighting and control equipment for use in hazardous areas. The division increased revenues by 3.3% to £1.94m (2017: £1.87m). Operating profit improved to £0.12m (H1 2017: £0.07m), a rise of 63.9%. 

The sale of Exidor to ASSA ABLOY Ltd, the largest global supplier of lock and security systems, was agreed for a total consideration of £10m, payable in cash. The proceeds improve the Group's financial position, reducing net debt, providing additional working capital and also decreasing certain existing pension liabilities.

Outlook

The Group is expected to deliver an improved second half performance. However, trading conditions remain tough due to schedule reductions from turbo charger customers.  This reflects uncertainties created by Brexit and the new vehicle emissions testing regime, and we are taking actions to respond appropriately. 

Keith Butler-Wheelhouse

Chairman

21 December 2018

 

Consolidated Income Statement

for the six months ended 30 September 2018

Note		Unaudited six months ended 30 September 2018			Restated Unaudited six months ended 30 September 2017			Year ended 31 March 2018
		Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total
		£000	£000	£000	£000	£000	£000	£000	£000	£000
Revenue	2	17,363	-	17,363	14,316	-	14,316	30,153	-	30,153
Cost of sales		(15,170)	-	(15,170)	(12,469)	-	(12,469)	(25,475)	-	(25,475)
Gross profit		2,193	-	2,193	1,847	-	1,847	4,678	-	4,678
Other operating expenses	7	(2,526)	(61)	(2,587)	(2,535)	(172)	(2,707)	(4,994)	(324)	(5,318)
Operating (loss)/ profit		(333)	(61)	(394)	(688)	(172)	(860)	(316)	(324)	(640)
Finance costs	3	(152)	(62)	(214)	(128)	(64)	(192)	(347)	(126)	(473)
(Loss)/ profit before tax		(485)	(123)	(608)	(816)	(236)	(1,052)	(663)	(450)	(1,113)
Tax credit/ (expense)	4,7	98	23	(121)	78	(329)	(251)	(324)	85	(239)
(Loss)/ profit for the period from continuing operations		(387)	(100)	(487)	(738)	(565)	(1,303)	(987)	(365)	(1,352)
Discontinued operations
Profit for the period from discontinued operations		221	-	221	204	-	204	539	-	539
(Loss)/ profit for the period attributable to equity holders of the Parent Company		(166)	(100)	(266)	(534)	(565)	(1,099)	(448)	(365)	(813)
(Loss) per share from continuing operations:
Basic	5			(6.10)p			(16.37)p			(16.99)p
Earnings per share from discontinued operations:
Basic	5			2.77p			2.57p			6.77p
Total (loss) per share:
Basic	5			(3.34)p			(13.81)p			(10.2)p

^# Non- underlying items represent exceptional costs as disclosed in note 7, administration costs of the pension scheme and net financing costs on pension obligations, share based payment costs and the associated tax impact of these items.

 

Consolidated Statement of Comprehensive Income

for the six months ended 30 September 2018

	Unaudited six months ended  30 September 2018		Unaudited six months ended 30 September 2017		Year ended 31 March  2018
		£000		£000		£000
Loss for the period		(266)		(1,099)		(813)
Other comprehensive income
Reclassification for cash flow hedges included in sales		(19)		(152)		(18)
Movements in fair value on cash flow hedges taken to other comprehensive income		(139)		165		87
Deferred tax on movements in cash flow hedges		26		(2)		(12)
Net other comprehensive expense that may be recycled to profit and loss		(132)		11		57
Re-measurement gains/ (losses)on pension assets and liabilities		984		291		(8)
Deferred/ current tax on re-measurement (losses)/ gains on pension assets and liabilities		(186)		(55)		2
Net other comprehensive income/(expense) that will not  be reclassified to profit and loss		798		236		(6)
Other comprehensive expense for the period net of tax		666		247		51
Total comprehensive expense for the period attributable to equity holders of the Parent Company		400		(852)		(762)

 

Consolidated Balance Sheet

at 30 September 2018

		Unaudited 30 September 2018		Unaudited 30 September 2017		31 March 2018
		£000		£000		£000
Non-current assets
Property, plant and equipment		10,407		10,380		11,703
Intangible assets		298		424		427
Deferred tax assets		945		1,141		1,136
		11,650		11,945		13,266
Current assets
Assets held for sale		3,140		-		-
Inventories		2,818		3,367		3,551
Trade and other receivables		7,151		7,617		7,985
		13,109		10,984		11,536
Total assets		24,759		22,929		24,802
Current liabilities
Financial liabilities		8,614		6,246		6,989
Trade and other payables		6,509		6,579		7,465
		15,123		12,825		14,454
Non-current liabilities
Financial liabilities		1,855		1,972		1,889
Deferred tax liabilities		-		17		23
Provisions		200		200		200
Defined benefit pension scheme deficit		4,023		4,850		5,080
		6,078		7,039		7,192
Total liabilities		21,201		19,864		21,646
Capital and reserves
Share capital		1,990		1,990		1,990
Share premium		1,269		1,269		1,269
Capital redemption reserve		109		109		109
Hedging reserve		(174)		(61)		(15)
Retained earnings		364		(242)		(197)
Total equity		3,558		3,065		3,156
Total equity and liabilities		24,759		22,929		24,802

 

 Consolidated Cash Flow Statement

for the six months ended 30 September 2018

		Unaudited six months ended 30 September 2018		Unaudited six months ended 30 September 2017		Year ended 31 March 2018
		£000		£000		£000
Operating activities
(Loss) for the period before tax		(608)		(1,052)		(1,113)
Adjustments for:
Net finance costs excluding pensions		152		128		347
Depreciation of property, plant and equipment		631		618		1,280
Amortisation of software		28		48		60
Amortisation of development costs		10		-		-
Profit on disposal of property plant  and equipment		8		-		5
Share based payments		4		39		46
Difference between pension contributions paid and amounts recognised in the Income Statement		(73)		(67)		(137)
Increase in inventories		(506)		158		75
Increase in receivables		(846)		(293)		(315)
Increase in payables		354		96		544
Cash (outflow)/ inflow from continuing operations		(846)		(325)		792
Cash (outflow)/ inflow from discontinued operations		(45)		23		-
Net cash (outflow)/inflow from operating activities		(891)		(301)		1,300
Investing activities
Purchase of property, plant and equipment		(464)		(887)		(2,958)
Purchase of software		-		(14)		(16)
Development costs		-		-		(24)
Disposal of property, plant and equipment		-		21		25
Investing activities from discontinued operations		(68)		-		-
Net cash outflow from investing activities		(532)		(880)		(2,973)
Financing activities
Interest paid		(168)		(142)		(377)
Repayment of asset loans		-		(81)		(200)
Net invoice finance drawdown		2,127		1,194		1,230
Import loan facility (repayment)		(1,137)		(879)		(98)
Finance leases taken out		780		891		849
Net cash inflow from financing activities		1,602		983		1,404
Net increase in cash and cash equivalents		179		(199)		(269)
Cash and cash equivalents at the start of the period		(485)		(216)		(216)
Cash and cash equivalents at the end of the period		(306)		(414)		(485)
Cash and cash equivalents included in discontinued operations		902		273		572
Cash and cash equivalents for continuing operations		(1,208)		(687)		(1,057)
Cash and cash equivalents compromise:
Overdraft		(306)		(414)		(485)

 

Consolidated Statement of Changes in Equity

for the six months ended 30 September 2018

	Share capital	Share premium	Capital redemption reserve	Hedging reserve	Retained earnings	Attributable to equity holders of the parent
	£000	£000	£000	£000	£000	£000
At 1 April 2017	1,990	1,269	109	(72)	582	3,878
Loss for the period	-	-	-	-	(1,099)	(1,099)
Other comprehensive expense for the period net of tax	-	-	-	11	236	247
Total comprehensive expense	-	-	-	11	(863)	3,026
Share based payments	-	-	-	-	39	39
Total of transactions with shareholders	-	-	-	-	39	39
At 30 September 2017	1,990	1,269	109	(61)	(242)	3,065
Loss for the period	-	-	-	-	286	286
Other comprehensive income/ (expense) for the period net of tax	-	-	-	46	(242)	(196)
Total comprehensive income	-	-	-	46	44	90
Share based payments	-	-	-	-	7	7
Deferred tax on employee share options	-	-	-	-	(6)	(6)
Total of transactions with shareholders	-	-	-	-	1	1
At 1 April 2018	1,990	1,269	109	(15)	(198)	3,155
Loss for the period	-	-	-	-	(266)	(266)
Other comprehensive income for the period net of tax	-	-	-	(132)	798	665
Total comprehensive income/ (expense)	-	-	-	(132)	532	400
Share based payments	-	-	-	-	4	4
Total of transactions with shareholders	-	-	-	-	4	4
At 30 September 2018	1,990	1,269	109	(147)	338	3,559

Independent review report to Chamberlin plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report of Chamberlin Plc (the 'company') for the six months ended 30 September 2018 which comprises Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity and the related notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company as a body, for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half yearly financial report in accordance with the Disclosure and Transparency rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Grant Thornton UK LLP

Statutory Auditor, Chartered Accountants

Birmingham
21 December 2018

 

Notes to the Interim Financial statements

1              General information and accounting policies

This Interim Financial Report is unaudited, but has been reviewed by the Company's auditor having regard to the International Standard on Review Engagements (UK & Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the UK. A copy of their unmodified review report is attached.

The interim condensed consolidated financial statements do not comprise the Group's statutory accounts as defined by section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 March 2018 were approved by the board of directors on 14 June 2018 and were filed at Companies House.  The auditor's report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) or (3) of the Companies Act 2006.  

Basis of preparation

The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the AIM Rules issued by the London Stock Exchange.

Accounting policies

The principal accounting policies applied in preparing the interim Financial Statements comply with IFRS as adopted by the European Union and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 March 2018.

No new standards or interpretations issued since 31 March 2018 have had a material impact on the accounting of the Group.

Restatement

The unaudited income statement for the six months to 30 September 2017, and the accompanying notes, have been restated to reflect the presentation of Exidor as a discontinued operation.

Going concern

The Group's forecasts and projections, taking account of reasonably possible changes in trading conditions, show that the Group is able to operate within the level of its current bank facilities, comprising a £7.75m invoice discounting facility renewable in March 2019 (no indication that this will not be renewed in March 2019) and finance leases of £3.3m repayable over 5 years.  As a consequence, the Directors believe that the Group is well placed to manage its business and financial risks successfully.

After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the interim condensed consolidated Financial Statements.

2              Segmental analysis

For management purposes, the Group is organised into two operating divisions: Foundries and Engineering. The operating segments reporting format reflects the Group's management and internal reporting structures for the Chief Operating Decision Maker.

	Segmental revenue					Segmental operating  profit
	Unaudited  six months ended 30 Sep 2018 £000	Restated Unaudited six months ended 30 Sep 2017 £000		Year ended 31 March 2018 £000		Unaudited six months ended 30 Sep 2018 £000	Restated Unaudited six months ended 30 Sep 2017 £000	Year ended 31 March 2018 £000
Foundries	15,427	12,443		26,396		115	(166)	528
Engineering	1,936	1,873		3,757		119	73	229
Continuing operations	17,363	14,316		30,153		234	(93)	757
Discontinued operations	4,016	3,590		7,517		293	255	672
Segmental results	21,379	17,906		37,670		527	162	1,429
Reconciliation of reported segmental operating profit to (loss)/ profit before tax
						Unaudited six months ended 30 Sep 2018 £000	Restated Unaudited six months ended 30 Sep 2017 £000	Year ended 31 March 2018 £000
Segmental operating profit						234	(93)	757
Shared costs						(567)	(594)	(1,073)
Exceptional and non-underlying costs						(61)	(172)	(324)
Net finance costs						(230)	(206)	(503)
Profit from discontinued operations						293	255	672
(Loss)/ profit before tax						(331)	(810)	(471)

The Foundries segment is a supplier of iron castings, in raw or machined form, to a variety of industrial customers who incorporate the castings into their own products or carry out further machining or assembly operations on the castings before selling them on.  The Engineering segment provides manufactured and imported products to distributors and end-users. The products fall into the categories of hazardous area lighting and control gear and cable management.

Financing and income tax are managed on a Group basis and are not allocated to operating segments.

3              Finance income and costs

	Unaudited six months ended 30 September 2018	Unaudited six months ended 30 September 2017	Year ended 31 March 2018
	£000	£000	£000
Interest on bank overdraft	(168)	(142)	(377)
Net interest on net defined benefit pension liability	(62)	(64)	(126)
	(230)	(206)	(503)

4              Income tax expense

An effective rate of tax for the six months to 30 September 2018 of 19% (30 September 2017: 36%) has been used in these interim statements.

The previous effective rate of tax was higher than the standard rate because of writing off tax losses and deferred tax assets brought forward at Russell Ductile Castings Limited leading to an increased tax charge

The corporation tax rate remained at 19% for the year ended 31 March 2018. The rate will fall to 17% from 1 April 2020. It is not anticipated that the subsequent reduction to 17% will have a material effect on the Company's future current or deferred tax charges.

5              (Loss)/ earnings per share

The calculation of (loss) per share is based on the profit attributable to shareholders and the weighted average number of ordinary shares in issue. In calculating the diluted (loss) per share, adjustment has been made for the dilutive effect of outstanding share options. Underlying (loss) per share, which excludes exceptional costs, net financing cost of pension obligation, administration costs of the pension scheme and share based compensation, less related tax thereon, as analysed below, has been disclosed as the Directors believe this allows a better assessment of the underlying trading performance of the Group.

	Unaudited six months ended 30 September 2018	Unaudited six months ended 30 September 2017	Year ended 31 March 2018
	£000	£000	£000
Continuing operations loss for basic earnings per share	(487)	(1,303)	(1,352)
Exceptional costs	-	21	60
Net financing cost and service cost on pension obligation	119	176	344
Share based payments charge	4	39	46
Deferred tax asset write off	-	374	-
Taxation effect of the above	(23)	(45)	(85)
(Loss)/ earnings for underlying earnings per share	(387)	(738)	(987)

 

	Unaudited six months ended 30 September 2018	Unaudited six months ended 30 September 2017	Year ended 31 March 2018
	£000	£000	£000
Discontinued operations loss for basic earnings per share	221	204	539
Exceptional costs	-	-	-
Taxation effect of the above	-	-	-
Earnings for underlying earnings per share	221	204	539
	Unaudited six months ended 30 September 2018	Unaudited six months ended 30 September 2017	Year ended 31 March 2018
	000	000	000
Weighted average number of ordinary shares	7,958	7,958	7,958
Adjustment to reflect dilutive shares under option	350	350	350
Diluted weighted average number of ordinary shares	8,308	8,308	8,308

There is no adjustment to the 350,000 shares respectively under option for the loss per share calculation as they are required to be excluded from the weighted average number of shares as they are anti-dilutive for the period then ended.

6              Pensions

The Group operates a defined benefit pension scheme and a number of defined contribution pension schemes on behalf of its employees. For defined contribution schemes, contributions paid in the period are charged to the income statement.  For the defined benefit scheme, actuarial calculations are performed in accordance with IAS 19 in order to arrive at the amounts to be charged in the income statement and recognised in the statement of comprehensive income.  The defined benefit scheme is closed to new entrants and future accrual.

Under IAS 19, the Group recognises all movements in the actuarial funding position of the scheme in each period.  This is likely to lead to volatility in shareholders' equity from period to period.

The IAS 19 figures are based on a number of actuarial assumptions as set out below, which the actuaries have confirmed they consider appropriate.  The projected unit credit actuarial cost method has been used in the actuarial calculations.

	30 September 2018	30 September 2017	31 March 2018
Salary increases	n/a	n/a	n/a
Pension increases (post 1997)	3.1%	3.1%	3.1%
Discount rate	2.7%	2.6%	2.5%
Inflation assumption - RPI	3.2%	3.2%	3.2%
Inflation assumption - CPI	2.2%	2.2%	2.2%

The demographic assumptions used for 30 September 2018, were the same as used in 31 March 2018, 30 September 2017 and the last full actuarial valuation performed as at 1 April 2016. The triennial valuation as at 1 April 2016 was concluded during the period and maintained the current level of monthly cash payments paid into the scheme. The contributions expected to be paid during the year to 31 March 2019 are £271,000. The triennial valuation as at 1 April 2016 increased the deficit reduction period from 2028 to 2038.

The defined benefit scheme funding has changed under IAS 19 as follows:

Funding status	Unaudited  six months to 30 September 2018 £000	Unaudited  six months to 30 September 2017 £000	Year to 31 March 2018 £000
Scheme assets at end of period	13,617	13,421	13,207
Benefit obligations at end of period	(17,640)	(18,272)	(18,287)
Deficit in scheme	(4,023)	(4,850)	(5,080)
Related deferred tax asset	684	825	864
Net pension liability	(3,339)	(4,025)	(4,216)

The decrease in the net pension liability since March 2018 is mainly due to a decrease in the value of liabilities as a consequence of an increase in bond yields increasing the discount rate.

7              Exceptional costs and non-underlying items

	Unaudited six months ended 30 September 2018	Unaudited six months ended 30 September 2017	Year ended 31 March 2018
	£000	£000	£000
Group reorganisation	-	21	60
Exceptional costs	-	21	60
Share based payment charge	4	39	46
Defined benefit pension scheme administration costs	57	112	218
Non-underlying other operating expenses	61	172	324

Non-underlying exceptional costs of discontinued operations	-			-	-
Taxation
Write off of deferred tax assets		-	374			-
- tax effect of non-underlying other operating expenses		(23)	(33)			(52)
		(23)	341			(52)

During the year ended 31 March 2018, the Group rationalised operations at the Scunthorpe foundry given the reduced levels of turnover. Reorganisation costs, including redundancy and recruitment, relate to this rationalisation.

 

8              Net debt

	Unaudited six months ended 30 September 2018	Unaudited six months ended 30 September 2017	Year ended 31 March 2018
	£000	£000	£000
Financial liabilities
Bank overdraft	306	414	485
Current instalments due on finance leases	841	586	627
Current instalments due on asset finance loans	600	100	-
Import loan facility	-	356	1,137
Invoice finance liability	6,867	4,790	4,740
Financial liabilities due in less than one year	8,614	6,246	6,989
Instalments due on finance leases in greater than one year	1,855	1,972	1,889
Total financial liabilities	1,855	1,972	1,889
Net debt	10,469	8,218	8,878

9              Interim report

Copies of this interim results statement will be available on the Group's website, www.chamberlin.co.uk, and from the Group's headquarters at Chuckery Road, Walsall, West Midlands, WS1 2DU.

 

END

 

 

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