Interim Results

Chamberlin & Hill PLC
14 November 2001


CHAMBERLIN & HILL PLC                               

INTERIM RESULTS - SIX MONTHS ENDED 30 SEPTEMBER 2001
 
 
CHAIRMAN'S STATEMENT

Looking back it is clear that trading conditions began to deteriorate this
time last year following a strong six months to 30 September 2000. In the
current year operating profit for the first half was £1.39 million (2000:
£1.68 million) and this follows the half year to 31 March 2001 when operating
profit was £1.28 million. Whilst turnover continued to decline, margins
improved as a result of timely management action and improving productivity.
The balance sheet remains strong with net debt of only £0.56 million.

The two volume producing foundries at Walsall and Bloxwich saw lower sales in
the six months, while in contrast, Ductile Castings increased its turnover in
line with our ongoing expansion plans for this business. Sales in our
engineering operations also declined in the period. Full integration of Webb
Lloyd into the operations of Fred Duncombe at Cannock was completed, and we
expect to finalise the sale of the previous site at Sutton Street, Birmingham
shortly.     

Adam Vicary, managing director of Ductile Castings, was appointed to the
Board with effect from 27 September 2001. He will add further strength to the
manufacturing experience available to the Board.

The Board has decided to declare an interim dividend of 3.85p per share
(2000: 3.75p) payable on 19 December 2001 to all shareholders on the register
on 23 November 2001. We are continuing with our capital expenditure and
product development programmes; we are gaining new business and, with two
relatively minor exceptions, our chosen markets are well defended against
imports. Trading conditions have yet to improve as business worldwide watches
developments in a period of uncertainty. Whilst there are predictions of a
restocking upturn it is difficult to be confident about the immediate future.
We have every confidence in our medium and long term prospects.

John Eccles
Chairman

14 November 2001

                                                                              
  Group Profit And Loss Account                                               
                                            Unaudited    Unaudited              
                                          6 months to  6 months to  Year ended
                                         30 September 30 September    31 March
                                                          restated    restated  
                                                 2001         2000        2001
                                                 £000         £000        £000

  Turnover                                     15,485       16,398      32,521
  Operating profit                              1,390        1,684       2,965
  Exceptional Item - Restructuring Costs            -            -       (340)
  Profit before interest and taxation           1,390        1,684       2,625
  Interest payable                               (17)         (23)        (32)
  Profit before taxation                        1,373        1,661       2,593
  Taxation                                      (412)        (499)       (783)
  Profit after taxation                           961        1,162       1,810
  Dividend                                      (280)        (273)       (836)
  Retained profit                                 681          889         974
  Earnings per share                                                          
                 - basic                       13.21p       16.00p      24.92p
                 - excluding exceptional item                    -      28.20p
                 - fully diluted               13.20p       15.93p      24.83p
                                                                      
  Dividend per share                            3.85p        3.75p      11.50p


  Statement of total recognised gains and losses  
                            
                                            Unaudited    Unaudited            
                                          6 months to  6 months to  Year ended
                                         30 September 30 September    31 March  
                                                          restated    restated
                                                 2001         2000        2001
                                                 £000         £000        £000

  Profit after taxation                           961        1,162       1,810
  Prior year adjustment - adoption of FRS 19    (752)                         
  Total recognised gain                           209                         
                                                                              

  Summarised Group Balance Sheet                                              
                                                As at        As at       As at
                                         30 September 30 September    31 March 
                                                 2001         2000        2001
                                                          restated    restated
                                                 £000         £000        £000
  Fixed assets                                                                
  Tangible assets                               8,882        8,906       9,324
  Intangible assets                               237          251         243
  Current assets                                                              
  Stock                                         3,185        3,171       3,322
  Debtors                                       8,017        8,306       6,922
  Property held for sale                          126            -           -
  Cash at bank                                      -            -         178
                                               11,328       11,477      10,422
  Creditors - under one year                                                  
  Bank Overdraft                                (558)        (785)           -
  Other                                       (5,485)      (6,099)     (6,292)
  Net current assets                            5,285        4,593       4,130
  Creditors - after one year                     (53)        (139)           -
  Provisions for liabilities and charges        (803)        (829)       (830)
                                               13,548       12,782      12,867

  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                             603          611         607
  Profit & loss account                        10,393        9,619       9,708
                                               13,548       12,782      12,867


  Consolidated Cash Flow Statement                                            
                                           Six months   Six months        Year
                                                ended        ended       ended
                                         30 September 30 September    31 March
                                                 2001         2000        2001
                                                 £000         £000        £000

  Net cash inflow from operating activities                                   
  Operating profit                              1,390        1,684       2,965
  Non cash items - depreciation and amortisation  794          778       1,474  
                 - other                            -            -        (19)
  Exceptional item - restructuring costs            -            -       (217)
  Changes in working capital                  (1,115)      (1,899)       (655)
                                                1,069          563       3,548

  Returns on investments and servicing of                                     
  finance                                                                     
  Interest paid                                  (19)         (31)        (43)
  Interest received                                 2            8          11
                                                 (17)         (23)        (32)

  Corporation tax paid                          (248)        (299)     (1,015)

  Investing activities                                                        
  Purchase of tangible fixed assets             (493)        (927)     (1,974)
  Proceeds from sale of tangible fixed assets      21            6          28
                                                                        
                                                (472)        (921)     (1,946)

  Equity dividends paid                         (564)        (542)       (814)

  Net cash inflow/(outflow) before financing    (232)      (1,222)       (259)
  Financing                                                                   
  Repayment of loan notes                       (504)        (654)       (654)
  Increase/(decrease) in cash                   (736)      (1,876)       (913)
                                                                              
                                                                              

  Reconciliation of net cash flow to movement in net debt 
                    
  Decrease in cash in the period                (736)      (1,876)       (913)
  Issue of loan notes 2001/2002                     -        (504)       (504)
  Repayment of loan notes 2000/2001                 -          654         654
  Repayment of loan notes 2001/2002               504            -           -
  Movement in net debt                          (232)      (1,726)       (763)
  Opening net debt                              (326)          437         437
  Closing net debt                              (558)      (1,289)       (326)


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 2001 Annual Report and Accounts with the
exception of the policy on deferred tax. Financial Reporting Standard ('FRS')
19, 'Deferred Tax' has been adopted with effect from 1 April 2001. FRS 19
requires that full provision is made for deferred taxation on all timing
differences, replacing the previous partial provisioning policy. The
comparative figures have been restated in accordance with this change in
policy. The effect on the balance sheet at 31 March 2001 and 30 September
2000 is to increase the deferred tax provision and reduce reserves by
£752,000 and £751,000 respectively.

The results for the year to 31 March 2001 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 2000 and 30 September 2001 have not been audited.

2. Dividend 
The interim dividend of 3.85p per share will be paid on 19 December 2001 to
all shareholders registered at the close of business on 23 November 2001.

3. Earnings per share 
The calculation of basic earnings per share is based on the profit after tax
of £961,000 (2000: £1,162,000) and the weighted average of ordinary shares in
issue and ranking for dividend of 7,272,158 shares (2000: 7,272,158).

Diluted earnings per share is based on 7,282,327 shares (2000: 7,302,742)
after adjusting for the dilutive effect of the potential exercise of share
options where the prices at which they are exercisable are below the weighted
average share price during the year.


4. Analysis of net debt       

                                 1 April       Cash   Non Cash   30 September
                                    2001   Movement   Movement           2001
                                    £000       £000       £000           £000

  Cash at bank and in hand           178      (736)          -          (558)
  Loan Notes 2001/2002 repaid      (504)        504          -              -
  Net debt                         (326)      (232)          -          (558)
 

5. Reconciliation of movement in shareholders' funds 

                                     30 September   30 September   31 March
                                             2001           2000       2001
                                             £000           £000       £000

      Profit after tax                        961          1,162      1,810
      Dividends                             (280)          (273)      (836)
                                              681            889        974
      Opening shareholders' funds          12,867         12,643     12,643
                                           13,548         13,532     13,617
      Prior year adjustment                     -          (750)      (750)
      Closing shareholders' funds          13,548         12,782     12,867
 
 
A copy of the interim results will be sent to shareholders and further copies
will be available from the Company's registered office: Chuckery Foundry,
Walsall WS1 2DU