Interim Results

Chamberlin & Hill PLC
9 November 2000


Chamberlin & Hill PLC - Interim Results 
 
Chairman's Statement 
 
Turnover in the first half of the financial year 2000/2001 was up 9% at £16.4
million compared to £15 million last time. Operating profit was £1.68 million
compared to £1.56 million at the interim stage last year, an increase of 8%.
Basic earnings per share were 10% higher at 16p, compared to 14.53p
previously. The Board has declared an interim dividend of 3.75p per share
(1999: 3.55p). 
 
All three foundries have enjoyed increased sales in the period. At Walsall
Foundry there has been considerable price pressure, both from customers and
indirectly as a result of the declining value of the euro. At both Bloxwich
Foundry and Ductile Castings we have benefited from changes in market
conditions which have resulted in new business. 
 
In the engineering businesses, turnover increased by 2%. PFP Electrical
Products saw an increase in lighting activity, and has now launched its new
fluorescent and flood light ranges into the market. Fred Duncombe again
increased sales of Exidor, whilst ironmongery remained flat. Performance at
Webb Lloyd was weak, but we have now restructured and strengthened the
management team providing a sound platform for the business to go forward.  
 
In recent weeks the order intake has become somewhat patchy, particularly
within the automotive sector. This, with continuing pressure on selling
prices and the rise in some energy costs may make trading conditions more
challenging in the second half of the year. 
 
John Eccles

Chairman 
 
9th November 2000 
 

Group Profit and Loss Account

 
                            Unaudited               Unaudited                 
                          6 months to          6 months to 30      Year ended  
                       30 September                September        31 March  
                               2000                       1999           2000 
                               £000                       £000           £000 
  Turnover                   16,398                     15,025         31,531 
                         ==========                 ==========     ========== 
  Operating profit            1,684                      1,564          3,308 
                                                                         
Interest (payable)/receivable  (23)                         (3)            (7) 
                         ----------                 ----------        
                                                                 
Profit before taxation       1,661                       1,561          3,301 
                                                                 
Taxation                      (498)                       (468)        (1,017) 
                           ----------               ----------       --------- 
                                                                 
Profit after taxation        1,163                       1,093          2,284 
                                                                 
Dividend                      (273)                       (258)          (800) 
                          ----------                ----------       --------- 
                                                                             
Retained profit                890                         835          1,484 
                          ==========                ==========       ========= 
Earnings per share 
- basic                      16.00p                      14.53p         30.88p 
- diluted                    15.93p                      14.47p         30.74p 
Dividend per share            3.75p                       3.55p         11.00p 
 


Summarised Group Balance Sheet 
 
                                             As at          As at       As at 
                                      30 September   30 September    31 March 
                                              2000           1999        2000 
                                              £000           £000        £000 
  Fixed assets                                                                
       Tangible assets                       8,906          8,658       8,757 
       Intangible assets                       251            263         257 
 
  Current assets                                                              
       Debtors                               8,306          7,022       6,635 
       Stock                                 3,171          2,916       3,336 
       Cash at bank                              -              -       1,091 
                                        ----------      ---------    -------- 
                                            11,477          9,938      11,062 
                                                      
 Creditors - under one year  
       Bank Overdraft                         (785)             -           - 
       Other                                (6,099)       (6,696)     (7,355) 
                                        -----------     ---------    -------- 
  Net current assets                          4,593         3,242       3,707 
  Creditors - after one year                  (139)         (187)           - 
  Provision for liabilities and                (78)          (78)        (78) 
  charges                               -----------     ---------    -------- 
                                             13,533        11,898      12,643 
                                        ===========     =========    ======== 
  Capital and reserves                                                        
       Called up share capital                1,818         1,818       1,818 
       Share premium account                    625           625         625 
       Capital redemption reserve               109           109         109 
       Revaluation reserve                      611           619         615 
       Profit and loss account               10,370         8,727       9,476 
                                        -----------     ---------    -------- 
                                             13,533        11,898      12,643 
                                        ===========    ==========    ======== 
 
 

Consolidated Cash Flow Statement

                                       Six months      Six months        Year 
                                            Ended           ended       ended 
                                     30 September    30 September    31 March 
                                             2000            1999        2000 
                                             £000            £000        £000 
  Net cash inflow from operating                                              
  activities                                                                  
  Operating profit                          1,684           1,564       3,308 
  Non cash items - depreciation               778             773       1,448 
  and amortisation                                                            
                                                                              
  - other                                       -               -         (35) 
  Changes in working                       (1,899)         (1,087)       (279) 
  capital                               ----------      ----------   --------- 
                                                                              
                                              563           1,250       4,442 
                                          ----------    ---------    -------- 
  Returns on investments and servicing                                        
  of finance                                                                  
  Interest paid                               (31)           (19)        (36) 
                                                                     
 Interest received                              8             16          29 
                                          ----------    ---------    -------- 
                                                                        
                                              (23)            (3)         (7) 
                                         -----------   ----------   --------- 
Corporation tax paid                         (299)             -      (1,173) 
                                          ----------   ----------   --------- 
                                                   
Investing activities  
                                                                        
Purchase of tangible fixed assets            (927)          (431)     (1,077) 
                                                                              
Proceeds from sale of tangible fixed            6             28          37 
assets                                   ---------    ----------    -------- 
                                                                         
                                             (921)          (403)     (1,040) 
                                          ----------  -----------   --------- 
Equity dividends paid                        (542)          (532)       (810) 
                                          ----------   -----------    --------- 
                                                                           
Net cash inflow/(outflow) before financing (1,222)           312       1,412 
Financing                                                              
                                                               
Purchase of own shares                          -           (908)       (908) 
                                                                             
Repayment of loan                            (654)             -           - 
notes                                    ---------      ---------  --------- 
Increase/(decrease)in cash                 (1,876)          (596)        504 
                                         =========      ==========  ======== 

Reconciliation of net cash flow to 
movement in net debt                     

Increase/(decrease) in cash in the         (1,876)          (596)        504 
period                                                                      
  
Issue of loan notes 2001/2002                (504)             -           -   
/2002                                                                       
Repayment of loan notes 2000/2001             654              -           - 
                                        ---------        --------    ------- 
Movement in net debt                       (1,726)          (596)        504 
                                                                          
Opening net debt                              437            (67)        (67) 
                                         --------        --------    -------- 
Closing net debt                           (1,289)          (663)        437 
                                         =========       ========     ======= 
 
Notes: 
 
1.   Preparation of interim accounts 
     This interim statement has been prepared on the basis of the accounting
     policies set out on page 20 of the 2000 Annual Report and Accounts. 
 
     The results for the year to 31 March 2000 are an abridged version of the
     full accounts which have been filed with the Registrar of Companies. The
     report of the auditors was unqualified and did not contain a statement     
    under section 237(2) or (3) of the Companies Act 1985. The figures for the  
   six months ended 30 September 1999 and 30 September 2000 have not been       
  audited. 
 
2.   Dividend 
     The interim dividend of 3.75p per share will be paid on 18 December 2000
     to all shareholders registered at the close of business on 24 November     
    2000. 
 
3.   Earnings per share 
     The calculation of basic earnings per share is based on the profit after
     tax of £1,163,000 (1999: £1,093,000) and the weighted average of ordinary
     shares in issue and ranking for dividend of 7,272,158 shares
     (1999:7,520,639). 
 
     Diluted earnings per share is based on 7,302,742 shares (1999:
     7,552,947) after adjusting for the dilution effect of the potential        
    exercise of share options. 
 
4.   Analysis of net debt 
 

                                                                              
                                 1 April    Cash        Non Cash  30 September 
                                    2000    Movement    Movement         2000 
                                    £000     £000        £000            £000 
                                ---------  --------    ---------   ----------- 
Cash at bank   and in hand         1,091   (1,876)          -            (785) 
Loan Notes 2000/2001  repaid        (654)     654           -               - 
Loan Notes 2001/2002   issued          -        -        (504)           (504) 
                                ---------  --------     --------   ----------- 
Net debt                             437   (1,222)       (504)         (1,289) 
                                ---------  --------     --------   ----------- 
  
5.  Reconciliation of movement in 
shareholders' funds 

                                                                       
                                     30 September    30 September    31 March 
                                            2000            1999        1999 
                                            £000            £000        £000 
Profit after tax                           1,163           1,093       2,284 
Dividends                                   (273)           (258)       (800) 
Goodwill eliminated on consolidation           -               -          96 
                                                                        
Purchase of own shares                         -            (908)       (908) 
                                       -----------    ----------    --------- 
                                                                              
                                             890             (73)        672 
Opening  shareholders' funds              12,643          11,971      11,971 
                                      -----------     ----------    ---------   
                                                                   
Closing shareholders' funds               13,533          11,898      12,643 
                                      -----------     ----------    ---------