Trading Statement

Chamberlin & Hill PLC
31 January 2007

CHAMBERLIN & HILL PLC (the 'Company')



31 January 2007



Trading Statement



In the Company's interim statement last November the Board stated that it
expected the Company's underlying profit in the second half to exceed that
reported in the interim results and that the improving trend would be sustained
into next year.



Trading in both the castings and engineering divisions continues to support this
outlook. However, the new executive team have identified a number of historic
issues, predominantly relating to the Company's balance sheet, which will need
to be addressed in the Company's accounts for the period ending 31 March 2007.
  The major category of adjustment relates to stock valuation and ageing
systems. None of these charges are individually large nor expected to be
recurring.



While the Company continues to expect the underlying performance for the second
half of this year to show an improvement over the first half, the recovery in
Heavy Castings is proving slower than had been targeted, and the recent
strengthening of Sterling against the Euro has had a negative effect on margins.
Together with the adjustments this means that the Company's results for the
period ending 31 March 2007 will fall materially short of current market
expectations, with the adjustments accounting for the bulk of the shortfall.



The Company also announced in its interim statement that the Heavy Castings
division's relocation programme was under review to optimise its cost
effectiveness. As a result the decision has been taken to write-off as an
exceptional charge certain ex-Bloxwich equipment which the Company no longer
expects to need.



The Company's borrowings are modest and are expected to remain so since the
great majority of the adjustments identified relate to non-cash items. As a
result, the Directors expect the Company's final dividend for the period ending
31 March 2007 to be in line with market expectations.



The Directors continue to remain confident that the improving underlying trend
will be sustained into next year.



For further information, contact details are:


Chamberlin & Hill plc
Tim Hair, CEO                                                      01922 707 100




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