Interim Results

Chamberlin & Hill PLC
09 November 2004


CHAMBERLIN & HILL PLC

INTERIM RESULTS - 6 MONTHS ENDED 30 SEPTEMBER 2004

CHAIRMAN'S STATEMENT

In the six months ended 30 September 2004 the group achieved a turnover of
£20.2m (2003: £13.2m) a growth of 53%. Operating profit was up 63% at £958k
(2003: £587k), while profit before tax, after exceptional items of £201k and the
add-back of negative goodwill arising from the Russell acquisition of £270k, was
£1,007k (2003: £592k).  Fully diluted earnings per share rose 66% to 9.3p (2003:
5.6p).

The board has decided to pay an unchanged interim dividend of 3.85p per share,
payable on 20 December 2004 to all shareholders registered on 3 December 2004.

While the volume of demand in the first half year has been generally strong
across the group, in common with other manufacturing companies we have had to
deal with very substantial increases in the costs of our raw materials and
energy.  This has been particularly acute for steel strip, ferrous scrap, new
production steel and pig iron, where significant price rises have been occurring
monthly.  Despite our best efforts to recover these costs by way of increased
prices to our customers there has been an inevitable time lag.  This has had an
effect on the net margin, partially offsetting improvements from the higher
levels of activity.

At the time of writing our annual report we commented that we expected the
acquisition of Russell Castings to support our return to growth in the year
ahead; at the AGM we advised shareholders that Russell was operating at the
upper end of our expectations.  While it has naturally not been immune to the
cost rise issues described above, indications to date continue to confirm that
this has been a very sound investment.  We continue to develop the synergy
opportunities with our other foundries, and now believe that the non-recurring
restructuring costs previously anticipated will not arise in the current year.

Peter Bell, finance director and company secretary, retires from the board
today.  We wish Peter well for the future and thank him for his 35 years of hard
work and dedication.  Simon Duckworth is appointed to replace him with immediate
effect.   He was previously finance director of Compass Software Group plc,
prior to which he held a number of directorships within UK engineering groups.

Looking forward, we will continue to explore opportunities for our foundries, to
pursue product development for our Exidor emergency exit hardware, and to extend
our range of hazardous area lighting products.  Overall activity is expected to
continue at broadly similar levels for the remainder of the year, but the
pressure due to cost rises shows no current signs of slackening and remains
unpredictable.

Tom Brown
Chairman

9 November 2004


Consolidated Profit And Loss Account
                                                                                         Unaudited
                                                                                          6 months          Year
                                                                                             Ended         Ended
                                                   Unaudited 6 months                 30 September      31 March
                                                  Ended 30 September 2004                     2003          2004
                                        Before
                                    release of
                                      negative     Negative
                                  goodwill and     goodwill    Exceptional
                                   exceptional     released          items
                                         items (see note 5)   (see note 6)      Total        Total         Total
                                          £000         £000           £000       £000         £000          £000

Group turnover

 - continuing                           14,980            -              -     14,980       13,234        27,311
 - acquisition                           5,233            -              -      5,233            -             -
Total                                   20,213            -              -     20,213       13,234        27,311

Operating profit

 - continuing                              700            -          (201)        499          587         1,007
 - acquisition                             258          270              -        528            -             -
Profit before interest                     958          270          (201)      1,027          587         1,007


Net interest (payable)                    (20)            -              -       (20)            5             6
Profit before taxation                     938          270          (201)      1,007          592         1,013


Taxation                                 (301)         (81)             60      (322)        (178)         (306)
Profit after taxation                      637          189          (141)        685          414           707


Dividend                                                                        (283)        (283)         (871)
Retained profit/(loss)                                                            402          131         (164)

Earnings per ordinary share:
 - basic                                                                         9.3p         5.6p          9.6p
 - before negative goodwill and
       exceptional items                                                         8.7p         5.6p          9.6p
 - fully diluted                                                                 9.3p         5.6p          9.6p

Dividend per share                                                              3.85p        3.85p        11.85p


Summarised Consolidated Balance Sheet

                                                                 As at                 As at                As at
                                                          30 September          30 September             31 March
                                                                  2004                  2003                 2004
                                                                  £000                  £000                 £000
Fixed assets

    Tangible assets                                              9,369                 8,559                8,770
    Intangible assets:
                        - goodwill                                 195                   209                  201
                        - negative goodwill                      (149)                     -                    -

                                                                 9,415                 8,768                8,971
Current assets

    Stock                                                        4,488                 3,351                3,496
    Debtors                                                      9,462                 6,329                6,656
    Cash at bank                                                     -                   345                  482

                                                                13,950                10,025               10,634
Creditors - under one year

    Bank overdraft                                             (1,025)                     -                    -
    Other                                                      (7,473)               (4,269)              (5,389)

Net current assets                                               5,452                 5,756                5,245


Creditors - over one year                                        (274)                     -                    -


Provisions for liabilities and charges                           (709)                 (747)                (734)

Net assets                                                      13,884                13,777               13,482


Capital and reserves

    Called up share capital                                      1,835                 1,835                1,835
    Share premium account                                          718                   718                  718
    Capital redemption reserve                                     109                   109                  109
    Revaluation reserve                                            579                   587                  583
    Profit & loss account                                       10,643                10,528               10,237

Equity shareholders' funds                                      13,884                13,777               13,482


Consolidated Cash Flow Statement

                                                            6 months               6 months
                                                               ended                  ended           Year ended
                                                        30 September           30 September             31 March
                                                                2004                   2003                 2004
                                                                £000                   £000                 £000

Net cash inflow from operating activities

    Operating profit before release of negative
      goodwill and exceptional items                             958                    587                1,007
    Exceptional items                                          (201)                      -                    -
    Non cash items:
                     - depreciation                              860                    738                1,377
                     - goodwill amortisation                       6                      6                   14
                     - other                                       -                      -                  (7)
    Changes in working capital                                 (980)                  (749)                (390)

                                                                 643                    582                2,001
Returns on investment and servicing of finance
    Interest received                                              -                      9                   14
    Interest paid                                               (20)                    (4)                  (8)

                                                                (20)                      5                    6


Corporation tax paid                                           (194)                   (95)                (247)


Investing activities

    Purchase of tangible fixed assets                          (720)                  (291)              (1,147)
    Proceeds from sale of tangible fixed assets                   16                     39                   49

                                                               (704)                  (252)              (1,098)

Acquisition

    Purchase of assets of Russell Castings                     (646)                      -                    -

Equity dividends paid                                          (587)                  (587)                (871)


Decrease in cash                                             (1,508)                  (347)                (209)



Reconciliation of net cash flow to movement in
net (debt)/funds
    Decrease in cash in the period                           (1,508)                  (347)                (209)
    Opening net funds                                            483                    692                  692

    Closing net (debt)/funds                                 (1,025)                    345                  483


Notes
     
1.   Preparation of interim accounts

     This interim statement has been prepared on the basis of the accounting 
     policies set out in the 2004 Annual Report and Accounts.

     The results for the year to 31 March 2004 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 2003 and 30 September 2004 have not been 
     audited.
     
2.   Dividend

     The interim dividend of 3.85p per share will be paid on 20 December 2004 to 
     all shareholders registered at the close of business on 3 December 2004.
     
3.   Earnings per share

     The calculation of basic earnings per share is based on the profit after 
     tax of £685,000 (2003: £414,000) and the weighted average of ordinary 
     shares in issue and ranking for dividend of 7,340,908 (2003: 7,340,908).

     Earnings per share before negative goodwill and exceptional items is based 
     on the profit before goodwill and exceptional items of £637,000 
     (2003: £414,000) and ordinary shares of 7,340,908 (2003: 7,340,908).

     Diluted earnings per share is based on the profit after tax of £685,000 
     (2003: £414,000) and 7,345,330 shares (2003: £7,340,908) 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.   Reconciliation of movement in shareholders' funds

                                                       30 September           30 September            31 March
                                                               2004                   2003                2004
                                                               £000                   £000                £000

Profit after tax                                                685                    414                 707
Dividends                                                     (283)                  (283)               (871)

                                                                402                    131               (164)
Opening shareholders' funds                                  13,482                 13,646              13,646

Closing shareholders' funds                                  13,884                 13,777              13,482

     
5.   Acquisition of Russell Castings

     The Group acquired certain assets of Russell Castings on 2 April 2004 as 
     follows:-
                                                                            
                                                    Historical              Fair value     Fair value of
                                                         value              adjustment            assets
                                                                                                acquired
                                                          £000                    £000              £000

Tangible fixed assets                                    1,275                   (520)               755
Stocks                                                   1,075                   (190)               885
Debtors                                                  1,718                       -             1,718
Creditors                                              (1,822)                       -           (1,822)

                                                         2,246                   (710)             1,536

Negative goodwill                                                                                  (419)

                                                                                                   1,117

Satisfied by:
- cash (including expenses)                                                                          646
- deferred consideration (paid 1 October 2004)                                                       471

                                                                                                   1,117

     The fair values, which may be revised in accordance with FRS7 as further
     information becomes available, represent the Directors' current estimate 
     of the net assets acquired.

     Negative goodwill of £270,000 has been released to the profit and loss 
     account during the period.

6.   Exceptional items

     Exceptional items comprise:-
                                                                                                 £000

(a) Retiring Director's severance costs                                                            92
(b) Restructuring costs within the Group's foundry operations                                     109

                                                                                                  201

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.


Enquiries:     Barrie Williams            07974 577637
               Simon Duckworth            0773 2013052


                      This information is provided by RNS
            The company news service from the London Stock Exchange            PPBDDDDK