Trading update

RNS Number : 6530P

Chamberlin PLC

21 November 2016

 

AIM: CMH

CHAMBERLIN plc

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

Trading Update

Chamberlin, the specialist castings and engineering Group, announces an update on trading for the financial year to 31 March 2017.

Trading in the first half of the financial year has been in line with management expectations and the Company's investment in a new machining facility in Walsall is progressing well and is expected to generate incremental sales from January 2017.  

Demand at the Company's foundry in Leicester, which produces mid-size castings, continues to be subdued and while the cost base has been reduced to ensure a lower breakeven point, as previously reported, the management has taken the difficult decision to cease production. Accordingly, an orderly wind-down is now commencing and should conclude by the end of 2016. The closure of the foundry is not expected to impact existing market forecasts for underlying profit before tax for the current financial year.  As in prior years, Chamberlin's performance is expected to be weighted towards the second half.

In the financial year to 31 March 2016, the Leicester foundry contributed sales of £5.9m and an underlying profit before tax of £420,000.  In the first half of the current financial year, Leicester contributed sales of approximately £1.8m and an underlying profit before tax of approximately £46,000.   

Management continues to view prospects for improved performance positively, helped by the increase in opportunities available as a result of the new machining capability as well as growth at Exidor, which produces architectural ironmongery, and Petrel, which designs and supplies specialist lighting.  In addition, as net exporters of UK manufactured products, all Chamberlin's operations should benefit from the current weak sterling, with the financial impact more evident in the next financial year as the Company's pre-Brexit currency hedges unwind.

The Company expects to publish interim results on 29 November 2016.  

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

Enquiries

Chamberlin plc (www.chamberlin.co.uk) Kevin Nolan, Chief Executive David Roberts, Finance Director		T: 01922 707100
Panmure Gordon                                                                                          (Nominated Adviser and Broker) Adam James / Peter Steel		T: 0207 886 2500
KTZ Communications (Financial PR) Katie Tzouliadis/ Viktoria Langley/ Emma Pearson		T: 020 3178 6378

 

END

 

 

TSTPGGUAGUPQGAU