Half-year Report

RNS Number : 6431T

Chamberlin PLC

18 November 2019

 

18 November 2019

AIM: CMH

CHAMBERLIN PLC

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

Interim Results

for the six months to 30 September 2019

Key Points

·      H1 results reflect tough trading conditions and a restructuring programme to align the cost base leading to improved start to H2

·      Revenues at £12.8m (2018: £17.4m)

·      Operating loss before restructuring costs £1.0m (2018 restated: loss £0.4m). Operating loss after restructuring costs £1.7m (2018 restated: £0.4m)

·      Major downsizing of operations with 28% reduction in headcount, non-recurring restructuring charge of £0.7m

·      Loss before tax of £1.8m (2018 restated: loss of £0.6m).

·      Net debt at 30 Sept 2019 at £6.1m (31 March: 2019 £5.4m)

·      Enhanced prospects for H2 due to new contracts and reduced cost base

Chairman, Keith Butler-Wheelhouse, commented: 

"The first half of the year has seen significant efforts going into the restructuring of the business as well as a drive to win new business.  The restructuring is now, in the main, complete. Looking ahead the Board is cautiously optimistic that the lower cost base and prospective revenue gains will benefit Chamberlin over the years ahead."

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 Dan Mahoney		T: 020 3178 6378

Chairman's Statement

Chamberlin plc (AIM: CMH) announces its interim results for the six months ended 30 September 2019.

Revenues in the first six months declined to £12.8m from £17.4m in the prior year, when revenues rose by 21% aided by stock-building by some automotive customers. In addition to the swing in demand from the automotive sector, in part related to the changed emissions testing regime, revenues also reflected lower demand at the Scunthorpe foundry following British Steel's administration.  Some customers delayed purchasing at Petrel, partly attributable to continuing Brexit uncertainty.

Management have re-assessed the expected go-forward revenues, and have made substantial adjustments to the cost base.  Compared to the turn of the calendar year the headcount has reduced by 28%. 

Operating profitability in the first half, before restructuring costs of £0.7m, resulted in a loss of £1.0m (2018: loss £0.4m).  The loss before tax was £1.8m, compared to the loss of £0.6m in the first half of the prior year.

As a consequence, net debt increased from £5.4m at the start of the year to £6.1m.  Improvements to working capital and control of capital expenditure costs partly offset the cash effect of the above loss before tax.  Trade debt of £0.9m that was overdue at the half year-end has since been received, improving the net debt position.   

In addition to actions to reduce the cost base, management's negotiations with customers have substantially enhanced the outlook for the second half and future years. Contributing to these expected increased revenues are:

•      Higher volumes from existing automotive customers including increased utilisation of machining capacity achieved through improved technical support and additional filtration initiatives.

•      A new contract for non-automotive light castings.

•      Selling price increases.

•      A new customer for heavy castings, with potentially large volumes.

•      New products launched at Petrel.

Outlook

Trading in the second half reflects the new customer orders and initiatives above, and the actions taken to restructure the cost base. The combination of higher revenues and a significantly lower cost base is expected to give rise to second half operating margins of approximately 3%, with a consequent reduction in net debt.  However, despite the improvement in second half trading, the Board believes that the results to 31 March 2020, excluding the restructuring cost of £0.7m, will move from the positive side of break-even to a small loss for the year. Looking further ahead, Management are encouraged by these initiatives, although risks remain until the post Brexit terms of trade with the EU are determined.

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

Consolidated Income Statement 

for the six months ended 30 September 2019

Note		Unaudited six months ended 30 September 2019			Unaudited six months ended 30 September 2018 restated (note 9)			Year ended 31 March 2019 restated (note 9)
		Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total
		£000	£000	£000	£000	£000	£000	£000	£000	£000
Revenue	2	12,828	-	12,828	17,363	-	17,363	32,958	-	32,958
Cost of sales		(11,921)	-	(11,921)	(15,152)	-	(15,152)	(29,192)	-	(29,192)
Gross profit		907	-	907	2,211	-	2,211	3,766	-	3,766
Other operating expenses	7	(1,917)	(686)	(2,603)	(2,580)	(4)	(2,584)	(4,776)	(3,448)	(8,224)
Operating loss		(1,010)	(686)	(1,696)	(369)	(4)	(373)	(1,010)	(3,448)	(4,458)
Finance costs	3,7	(147)	-	(147)	(233)	-	(233)	(499)	-	(499)
Loss before tax		(1,157)	(686)	(1,843)	(602)	(4)	(606)	(1,509)	(3,448)	(4,957)
Tax (expense)/credit	4,7	(143)	-	(143)	121	-	121	(39)	87	48
Loss for the period from continuing operations		(1,300)	(686)	(1,986)	(481)	(4)	(485)	(1,548)	(3,361)	(4,909)
Discontinued operations
Profit for the period from discontinued operations		-	-	-	-	221	221	-	6,435	6,435
(Loss)/ profit for the period attributable to equity holders of the Parent Company		(1,300)	(686)	(1,986)	(481)	217	(264)	(1,548)	3,074	1,526
Underlying (loss) per share from continuing operations:
Basic	5			(16.3)p			(6.0)p			(19.5)p
Diluted				(16.3)p			(6.0)p			(19.5)p
Earnings per share from discontinued operations:
Basic	5			-			2.8p			80.9p
Diluted				-			2.8p			80.9p
Total (loss)/earnings per share:
Basic	5			(25.0)p			(3.3)p			19.2p
Diluted				(25.0)p			(3.3)p			19.2p

^# Non- underlying items represent exceptional costs, share based payment costs and the associated tax impact of these items as disclosed in note 7.

 

Consolidated Statement of Comprehensive Income

for the six months ended 30 September 2019

	Unaudited six months ended  30 September 2019		Unaudited six months ended 30 September 2018 restated (note 9)		Year ended 31 March  2019
		£000		£000		£000
(Loss)/profit for the period		(1,986)		(264)		1,526
Other comprehensive income
Reclassification of cash flow hedges included in sales		-		(19)		-
Movements in fair value of cash flow hedges taken to other comprehensive income		(165)		(139)		134
Deferred tax on movements in cash flow hedges		28		26		(23)
Net other comprehensive (expense)/income that may be recycled to profit and loss		(137)		(132)		111
Re-measurement gains/ (losses)on pension scheme assets and liabilities		(261)		984		76
Deferred/ current tax on re-measurement (losses)/ gains on pension assets and liabilities		50		(186)		(15)
Net other comprehensive (expense)/ income/that will not  be reclassified to profit and loss		(211)		798		61
Other comprehensive (expense)/income for the period net of tax		(348)		666		172
Total comprehensive (expense)/income for the period attributable to equity holders of the Parent Company		(2,334)		402		1,698

 

Consolidated Balance Sheet

at 30 September 2019

		Unaudited 30 September 2019		Unaudited 30 September 2018 restated (note 9)		31 March 2019
		£000		£000		£000
Non-current assets
Property, plant and equipment		7,714		11,143		7,769
Intangible assets		264		298		290
Deferred tax assets		820		945		906
		8,798		12,386		8,965
Current assets
Assets held for sale		-		3,140		-
Inventories		2,838		2,818		2,702
Trade and other receivables		5,140		7,151		6,052
Cash at bank		599		-		291
		8,577		13,109		9,045
Total assets		17,375		25,495		18,010
Current liabilities
Financial liabilities		4,159		8,734		2,683
Trade and other payables		5,153		6,507		4,600
		9,312		15,241		7,283
Non-current liabilities
Financial liabilities		2,491		2,469		2,966
Deferred tax liabilities		35		-		53
Provisions		200		200		200
Defined benefit pension scheme deficit		2,791		4,023		2,640
		5,517		6,692		5,859
Total liabilities		14,829		21,933		13,142
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		(41)		(147)		96
Retained earnings		(781)		341		1,404
Total equity		2,546		3,562		4,868
Total equity and liabilities		17,375		25,495		18,010

 

 Consolidated Cash Flow Statement

for the six months ended 30 September 2019

		Unaudited six months ended 30 September 2019		Unaudited six months ended 30 September 2018 restated (note 9)		Year ended 31 March 2019
		£000		£000		£000
Operating activities
Loss for the period before tax		(1,843)		(606)		(4,957)
Adjustments for:
Net finance costs		147		171		387
Impairment charge on property,plant and equipment		-		-		3,043
Depreciation of property, plant and equipment		476		684		1,688
Non-underlying items		686		-		-
Amortisation of software		22		28		59
Amortisation of development costs		11		10		25
(Profit)/loss on disposal of property plant  and equipment		(12)		8		-
Share based payments		-		4		40
Foreign exchange rate movements		(79)		-		-
One-off contribution to defined benefit pension scheme		-		-		(2,500)
Difference between pension contributions paid and amounts recognised in the Income Statement		(139)		(73)		137
Increase in inventories		(136)		(506)		(388)
Decrease/(increase) in receivables		998		(846)		419
Increase/(decrease) in payables		318		354		(1,332)
Cash inflow/(outflow) from continuing operations		449		(772)		(3,379)
Cash (outflow)/ inflow from discontinued operations		-		(45)		491
Cash out flow from non-underlying items		(604)		-		-
Net cash outflow from operating activities		(155)		(817)		(2,888)
Investing activities
Purchase of property, plant and equipment		(400)		(464)		(1,188)
Purchase of software		(7)		-		-
Development costs		-		-		(22)
Proceeds from sale of subsidiary		-		-		8,520
Cash and cash equivalents disposed		-		-		(1,146)
Disposal of property, plant and equipment		12		-		-
Investing activities from discontinued operations		-		(68)		(125)
Net cash (outflow)/inflow from investing activities		(395)		(532)		6,039
Financing activities
Interest paid		(118)		(187)		(387)
Net invoice finance drawdown/(repayment)		1,495		2,127		(1,832)
Import loan facility repayment		-		(1,137)		(873)
Finance lease payments		(530)		(55)		(781)
Finance leases additions		-		780		1,291
Financing activities from discontinued operations		-		-		207
Net cash inflow/(outflow) from financing activities		847		1,528		(2,375)
Net increase in cash and cash equivalents		297		179		776
Cash and cash equivalents at the start of the period Impact of foreign exchange rate movements		291 11		(485) -		(485) -
Cash and cash equivalents at the end of the period		599		(306)		291
Cash and cash equivalents included in discontinued operations		-		902		-
Cash and cash equivalents for continuing operations		599		(1,208)		291
Cash and cash equivalents compromise:
Cash at bank / (overdraft)		599		(306)		291

Consolidated Statement of Changes in Equity

for the six months ended 30 September 2019

	Share capital	Share premium	Capital redemption reserve	Hedging reserve	Retained earnings	Total equity
	£000	£000	£000	£000	£000	£000
At 1 April 2018	1,990	1,269	109	(15)	(197)	3,156
Loss for the period (restated)	-	-	-	-	(264)	(264)
Other comprehensive expense for the period net of tax	-	-	-	(132)	798	666
Total comprehensive (expense)/income	-	-	-	(132)	534	402
Share based payments	-	-	-	-	4	4
Total of transactions with shareholders	-	-	-	-	4	4
At 30 September 2018	1,990	1,269	109	(147)	341	3,562
Loss for the period	-	-	-	-	1,790	1,790
Other comprehensive income/ (expense) for the period net of tax	-	-	-	243	(737)	(494)
Total comprehensive income	-	-	-	243	1,053	1,296
Share based payments	-	-	-	-	36	36
Deferred tax on employee share options	-	-	-	-	(26)	(26)
Total of transactions with shareholders	-	-	-	-	10	10
At 1 April 2019	1,990	1,269	109	96	1,404	4,868
Loss for the period	-	-	-	-	(1,986)	(1,986)
Other comprehensive income for the period net of tax	-	-	-	(137)	(211)	(348)
Total comprehensive expense	-	-	-	(137)	(2,197)	(2,334)
Share based payments	-	-	-	-	14	14
Deferred tax on employee share options					(2)	(2)
Total of transactions with shareholders	-	-	-	-	12	12
At 30 September 2019	1,990	1,269	109	(41)	(781)	2,546

Independent review report to Chamberlin plc

Introduction

We have been engaged by the company to review the financial information in the half-yearly financial report for the six months ended 30 September 2019 which comprises the 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 and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

As disclosed in Note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in Note 1.

Our responsibility

Our responsibility is to express to the company a conclusion on the financial information 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 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 financial information in the half-yearly financial report for the six months ended 30 September 2019 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 1.

Use of our report

This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in a 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 for our review work, for this report, or for the conclusion we have formed.

Grant Thornton UK LLP

Statutory Auditor, Chartered Accountants

Birmingham

18 November 2019

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 2019 were approved by the board of directors on 3 June 2019 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 2019.

Comparative information for the six months ending 30 September 2018 has been restated following the adoption of IFRS 16 'Leases' in the second half of the 2019 financial year. In addition, a change has been made to the presentation of administration costs and interest costs associated with the company's defined benefit pension scheme. Previously, these costs were shown as non-underlying items. Management is now of the view that such costs should be reported as part of underlying results reflecting the on-going recurring nature of these costs. As a result of these changes, the underlying results in the comparative periods have been restated as shown in note 9.

No new standards or interpretations issued since 31 March 2019 have had a material impact on the accounting of the Group.

Going concern

After making enquiries and reviewing the group's forecasts and projections, the directors have a reasonable expectation that the Group is able to operate for the foreseeable future within its current facilities, comprising finance leases of £2.6m repayable over 4 years, right of use lease liabilities of £0.9m repayable over 8 years and an invoice finance discounting facility renewable annually in March  for the lower of £7.75m and 90% of outstanding invoices. Accordingly, the directors continue to adopt the going concern basis in preparing the half-yearly condensed consolidated interim 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.

	Revenue					Operating  (loss)/ profit
	Unaudited  six months ended 30 September 2019 £000	Unaudited six months ended 30 September 2018 £000		Year ended 31 March 2019 £000		Unaudited six months ended 30 September 2019 £000	Unaudited six months ended 30 September 2018 restated £000	Year ended 31 March 2019 restated £000
Foundries	11,177	15,427		29,343		(522)	133	(211)
Engineering	1,651	1,936		3,615		18	119	251
Segmental results	12,828	17,363		32,958		(504)	252	40
Shared costs						(506)	(621)	(1,050)
Exceptional and non-underlying costs						(686)	(4)	(3,448)
Net finance costs						(147)	(233)	(499)
Loss before tax from continuing operations						(1,843)	(606)	(4,957)

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 cable management.

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

3              Finance costs

	Unaudited six months ended 30 September 2019	Unaudited six months ended 30 September 2018 restated	Year ended 31 March 2019
	£000	£000	£000
Interest on bank overdraft	(46)	(152)	(335)
Interest expense on lease liabilities	(72)	(19)	(52)
Net interest on defined benefit pension liability	(29)	(62)	(112)
	(147)	(233)	(499)

4              Income tax expense

An estimated effective rate of tax for the six months to 30 September 2019 of 7.8% (30 September 2018: 20.0%) has been used in these interim statements. This rate is below the standard corporation tax rate of 19% due primarily to not recognising a deferred tax asset on trading losses, due to uncertainty over when the losses will recoverable. The corporation tax rate remained at 19% for the year ended 31 March 2019. 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)/earnings 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)/earnings 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 on pension obligations, 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 2019	Unaudited six months ended 30 September 2018 restated	Year ended 31 March 2019 restated
	£000	£000	£000
Continuing operations loss for basic earnings per share	(1,986)	(485)	(4,909)
Non-underlying operating items	686	4	3,448
Taxation effect of the above	-	-	(87)
Loss for underlying earnings per share	(1,300)	(481)	(1,548)

	Unaudited six months ended 30 September 2019	Unaudited six months ended 30 September 2018	Year ended 31 March 2019
	£000	£000	£000
Discontinued operations loss for basic earnings per share	-	221	6,435
Exceptional costs	-	-	-
Taxation effect of the above	-	-	-
Earnings for underlying earnings per share	-	221	6,435
	Unaudited six months ended 30 September 2019	Unaudited six months ended 30 September 2018	Year ended 31 March 2019
	000	000	000
Weighted average number of ordinary shares	7,958	7,958	7,958
Adjustment to reflect dilutive shares under option	424	350	424
Diluted weighted average number of ordinary shares	8,382	8,308	8,382

There is no adjustment for the shares under option in the diluted loss per share calculation as they are required to be excluded from the weighted average number of shares as they are anti-dilutive.

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 2019	30 September 2018	31 March 2019
Salary increases	n/a	n/a	n/a
Pension increases (post 1997)	3.0%	3.1%	3.2%
Discount rate	1.7%	2.7%	2.3%
Inflation assumption - RPI	3.1%	3.2%	3.3%
Inflation assumption - CPI	2.1%	2.2%	2.3%

The demographic assumptions used for 30 September 2019, were the same as used in 31 March 2019, 30 September 2018 and the last full actuarial valuation performed as at 1 April 2016. The contributions expected to be paid during the year to 31 March 2020 are £278,000. The next triennial valuation as at 1 April 2019 is currently in progress and is expected to be concluded by the end of quarter two in 2020.

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

Funding status	Unaudited  six months to 30 September 2019 £000	Unaudited  six months to 30 September 2018 £000	Year to 31 March 2019 £000
Scheme assets at end of period	16,861	13,617	16,065
Benefit obligations at end of period	(19,652)	(17,640)	(18,705)
Deficit in scheme	(2,791)	(4,023)	(2,640)
Related deferred tax asset	474	684	448
Net pension liability	(2,317)	(3,339)	(2,192)

The increase in the net pension liability since March 2019 is mainly due to an increase in the value of liabilities as a consequence of a reduction in bond yields reducing the discount rate.

7              Exceptional costs and non-underlying items

	Unaudited six months ended 30 September 2019	Unaudited six months ended 30 September 2018	Year ended 31 March 2019
	£000	£000	£000
Group reorganisation	672	-	54
Asset impairment	-	-	3,043
Onerous leases	-	-	16
Share based payment charge	14	4	40
Non-underlying operating costs	686	4	3,448

Taxation
- tax effect of non-underlying costs	-	-	(87)
	686	4	3,361

During the half year ended 30 September 2019, the Group undertook a Group wide restructuring programme in order to realign the cost base to the reduced levels of revenue. Group reorganisation costs of £672,000, which include redundancy and related costs, relate to this rationalisation programme.

8              Net debt

	Unaudited six months ended 30 September 2019	Unaudited six months ended 30 September 2018 restated	Year ended 31 March 2019
	£000	£000	£000
Financial liabilities
(Net cash)/bank overdraft	(599)	306	(291)
Current instalments due on finance leases	1,022	961	1,055
Current instalments due on asset finance loans	-	600	-
Invoice finance liability	3,137	6,867	1,628
Net debt due in less than one year	3,560	8,734	2,392
Instalments due on finance leases in greater than one year	2,491	2,469	2,966
Net debt	6,051	11,203	5,358

Instalments due under finance leases include "right of use" assets, primarily property leases, totaling £906,000. 

9              Restatement of comparatives

Following the early adoption of IFRS 16 'Leases' in the second half of the year ended 31 March 2019, comparative amounts for the half year ended 30 September 2018 have been restated on a comparable basis.

In addition, a change has been made to the presentation of administration costs and interest costs associated with the company's defined benefit pension scheme. Previously, these costs were shown as non-underlying items. Management is now of the view that such costs should be reported as part of underlying results reflecting the on-going recurring nature of these costs. As a result of this presentational change, the underlying results in the comparative periods have been restated. There is no change to statutory results as a consequence of this presentational change. 

The impact of the above changes on the comparatives is set out below:

Impact on loss, assets and liabilities at 30 September 2018	As previously reported	Impact of IFRS 16	Pension costs reclassification	As restated
	£000	£000	£000	£000
Income statement
Underlying operating loss	(333)	21	(57)	(369)
Underlying finance costs	(152)	(19)	(62)	(233)
Underlying loss before tax	(485)	2	(119)	(602)
Taxation	98	-	23	121
Underlying loss from continuing operations	(387)	2	(96)	(481)

Balance sheet
Assets
Property, plant & equipment		10,407		736		-		11,143
Liabilities
Financial liabilities due in less than 1 year		8,614		120		-		8,734
Financial liabilities due in more than 1 year		1,855		614		-		2,469
Total liabilities		10,469		734		-		11,203
Impact on underlying loss for the year ended 31 March 2019	As previously reported		Pension costs reclassification		As restated
	£000		£000		£000
Income statement
Underlying operating loss	(886)		(124)		(1,010)
Underlying finance costs	(387)		(112)		(499)
Underlying loss before tax	(1,273)		(236)		(1,509)
Taxation	(63)		24		(39)
Underlying loss from continuing operations	(1,336)		(212)		(1,548)

10           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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