Half Yearly Report

RNS Number : 6763G

Chamberlin PLC

24 November 2015

 

24 November 2015

AIM: CMH

CHAMBERLIN PLC

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

Half Year Results

For the six months to 30 September 2015

Key Points

·      Performance affected by tougher trading conditions and currency

·      Revenues of £18.0m (2014: £21.1m) - reflects Euro and subdued demand from steel, oil & gas, and mining sectors

·      Underlying* profit before tax of £0.1m (2014: £0.4m) - £0.6m impact from weak Euro

  On an IFRS basis, loss before tax of £0.4m (2014: profit of £0.3m)

·      Gross profit percentage, on a constant currency basis, increased to 17.5% (2014: 16.6%) - helped by operational              improvements and cost reduction

·      Cash inflow from operations increased to £0.7m (2014: £0.5m)

·      Net debt at 30 September 2015 of £4.3m (31 March 2015: £3.8m and 30 September 2014: £3.8m)

·      Diluted underlying* earnings per share of 0.2p (2014: 3.9p)

  On an IFRS basis, basic loss per share of 4.6p (2014: earnings per share of 2.6p)

·      Investment of £0.7m completed to support automotive contract wins at Walsall - set to enter production in 2016
 

·      Board expects underlying profit before tax for FY 31 March 2016 to be below the prior year - however the outlook for FY     31 March 2017 remains strong, supported by Walsall contract wins 

*All underlying figures are stated before net financing costs on pension obligations, administration costs of the pension scheme, exceptional costs, share-based payment costs and associated tax impact.

Chairman, Keith Butler-Wheelhouse, commented: 

"Results have been impacted by both the weak Euro and a slowdown in some of our core markets and therefore, despite the continued drive for efficiency, half year profits are behind the same period last year.

"Looking ahead, given the current tough trading environment, the Board expects underlying profitability for the current financial year to be below the £0.8m achieved in the prior financial year. However, we anticipate the profit outlook for the next financial year to 31 March 2017 to recover, with the major contract wins at Walsall expected to enter into production in 2016. The measures we have taken to achieve cost efficiencies and improve processes also leave the Group better positioned for profitable revenue growth."

Enquiries

Chamberlin plc Kevin Nolan, Chief Executive David Roberts, Finance Director		T: 020 3178 6378 (today) / 01922 707100

Panmure Gordon                                 (Nominated Adviser and Broker) Russell Cook		T: 020 7886 2500
KTZ Communications (Financial PR) Katie Tzouliadis		T: 020 3178 6378

CHAIRMAN'S STATEMENT

Introduction

Trading conditions have been generally tougher across the Group during the first half of the financial year compared to the same period last year. This is reflected in Chamberlin's results, with strength of Sterling against the Euro a significant factor and impacting profitability by £0.6m. Against this backdrop, we have continued to focus tightly on the cost base as well as measures to improve the operational performance of the Group's subsidiaries. We also continue to move forward with growth opportunities, with initiatives in place across both divisions, which we expect to benefit trading in 2016.

Results

The Group generated revenues of £18.0m for the six months to 30 September 2015 (2014: £21.1m), with adverse Euro/Sterling currency movement accounting for £0.7m of the period-on-period reduction. Approximately 30% of Group sales are denominated in Euros which were transacted at an average rate of €1.34 over the six months to September 2015 (2014: €1.19).

Underlying profit before tax was £0.1m, £0.3m lower than the comparative period last year (2014: £0.4m). Currency movement reduced profitability by £0.6m and lower volumes reduced margin by £0.4m. A large part of the impact of this was offset by cost reductions, amounting to £0.7m, and our focus on continuous improvement. Diluted underlying* earnings per share were 0.2p (2014: earnings per share of 3.9p).

On an IFRS basis the Group generated a loss of £0.4m (2014: profit of £0.3m) after accounting for restructuring costs of £0.3m, and administration and finance costs on the closed pension scheme of £0.2m. Diluted loss per share was 4.6p (2014: earnings per share of 2.5p).

The net debt position at 30 September 2015 showed an increase of £0.5m to £4.3m from the net debt position at 31 March 2015 of £3.8m (30 September 2014: £3.8m).  The Group has debt facilities of £8.1m.

Dividend

No dividend is proposed for the period under review (2014: nil).

Operations

The three foundries at Walsall, Leicester and Scunthorpe, generated total revenues of £13.3m in the period (2014: £16.0m), with £0.7m of the decrease attributable to currency. Without the currency impact, the profit contribution would have been maintained year-on-year. However, including the currency impact of £0.6m, the profit contribution reduced to £0.3m (2014: £0.9m). On a constant currency basis, gross profit margins increased from 12.5% to 13.3% reflecting our focus on continuous improvement and cost reduction.

The Walsall foundry, which produces small castings with complex internal geometry, saw revenues decrease by 4.6% on a constant currency basis. This mainly reflected the legacy turbo charger bearing housing work entering its final phase of life cycle. The new contracts, announced in late 2014, for turbo charger bearing housing for diesel engines in passenger cars, will enter production in calendar year 2016, with a full ramp up of volumes in 2017. An investment of £0.7m has been made in plant and equipment in the period under review in order to meet the capacity requirements of the new contract.

The Scunthorpe foundry, which produces heavy castings, saw continuing reduced demand, reflecting conditions in the power, construction and mining sectors, and revenues are 25.7% lower on the same period last year. We have completed cost base reductions and also have continued to make operational improvements as well as implementing price increases. These measures moved the foundry back into profitability in the second quarter and we expect an improved performance in the second half of the financial year.  We are also seeing some signs of returning volumes with existing customers. 

The foundry at Leicester, which produces medium castings, continues to be affected by competition from low cost countries and revenues in the first half decreased by 16.5% over the same period last year. This has necessitated some further adjustments to the foundry's cost base and these were completed in the period.   

The engineering division, which comprises Exidor, the UK market leader in panic and emergency exit door hardware, and Petrel, which manufactures lighting and control equipment for use in hazardous areas, saw revenues decrease by 6.4% to £4.7m (2014: £5.1m). This reflected a downturn in demand at Petrel, with reduced oil prices affecting the business's key market of oil and gas. Nonetheless, the division's operating profit contribution increased to 7.1%, helped by ongoing cost control and continuous improvement measures. While the trading backdrop for the division remains more difficult, Petrel is continuing to further extend its product range into LEDs and Exidor's focus on increasing export sales remains ongoing.

Outlook

Looking ahead, given the current tough trading environment, the Board expects underlying profitability for the current financial year to be below the £0.8m achieved in the prior financial year. However, we anticipate the profit outlook for the next financial year to 31 March 2017 to recover, with the major contract wins at Walsall expected to enter into production in 2016. The measures we have taken to achieve cost efficiencies and improve processes also leave the Group better positioned to win profitable revenue growth.

Keith Butler-Wheelhouse

Chairman

23 November 2015

 

Consolidated Income Statement

for the six months ended 30 September 2015

Note		Unaudited six months ended 30 September 2015			Unaudited six months ended 30 September 2014			Year ended 31 March 2015
		Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total
		£000	£000	£000	£000	£000	£000	£000	£000	£000
Revenue		18,039	-	18,039	21,082	-	21,082	40,835	-	40,835
Cost of sales		(14,879)	-	(14,879)	(17,089)	-	(17,089)	(32,612)	-	(32,612)
Gross profit		3,160	-	3,160	3,993	-	3,993	8,223	-	8,223
Other operating expenses	7	(3,011)	(412)	(3,423)	(3,464)	(74)	(3,538)	(7,236)	(583)	(7,819)
Operating profit/(loss)		149	(412)	(263)	529	(74)	455	987	(583)	404
Finance costs	3	(92)	(71)	(163)	(103)	(73)	(176)	(184)	(144)	(328)
Profit/(loss) before tax		57	(483)	(426)	426	(147)	279	803	(727)	76
Tax (expense)/credit	4	(38)	97	59	(106)	31	(75)	(213)	153	(60)
Profit/(loss) for the period from continuing operations attributable to equity holders of the Parent Company		19	(386)	(367)	320	(116)	204	590	(574)	16
Earnings/(loss) per share:
Basic	5			(4.6)p			2.6p			0.2p
Underlying	5	0.2p			4.0p			7.4p
Diluted	5			(4.6)p			2.5p			0.2p
Diluted underlying	5	0.2p			3.9p			7.2p

^# Non- underlying items represent exceptional costs as disclosed in note 7, administration costs of the pension scheme and net financing costs on pension obligations, share based payment costs and associated tax impact of these items.

 

Consolidated Statement of Comprehensive Income

for the six months ended 30 September 2015

	Unaudited six months ended  30 September 2015		Unaudited six months ended 30 September 2014		Year ended 31 March  2015
		£000		£000		£000
(Loss)/ profit for the period		(367)		204		16
Other comprehensive income
Reclassification for cash flow hedges included in sales		(183)		(145)		193
Movements in fair value on cash flow hedges taken to other comprehensive income		(59)		181		(162)
Deferred tax on movements in cash flow hedges		48		(7)		(6)
Net other comprehensive (expense)/ income that may be recycled to profit and loss		(194)		29		25
Re-measurement gains/(losses) on pension assets and liabilities		74		(379)		(1,150)
Deferred/ current tax on re-measurement (losses)/ gains on pension assets and liabilities		(15)		80		242
Net other comprehensive income/(expense) that will not  be reclassified to profit and loss		59		(299)		(908)
Other comprehensive expense for the period net of tax		(135)		(270)		(883)
Total comprehensive expense for the period attributable to equity holders of the Parent Company		(502)		(66)		(867)

 

Consolidated Balance Sheet

At 30 September 2015

		Unaudited 30 September 2015		Unaudited 30 September 2014		31 March 2015
		£000		£000		£000
Non-current assets
Property, plant and equipment		8,423		7,798		7,900
Intangible assets		397		470		452
Deferred tax assets		1,436		1,219		1,382
		10,256		9,487		9,734
Current assets
Financial assets		-		126		-
Inventories		3,480		3,722		4,006
Trade and other receivables		6,889		8,052		7,809
Current tax		-		-		1
		10,369		11,900		11,816
Total assets		20,625		21,387		21,550
Current liabilities
Financial liabilities		3,987		3,417		3,392
Trade and other payables		5,975		6,615		6,801
Provisions		-		26		-
		9,962		10,058		10,193
Non-current liabilities
Financial liabilities		348		500		400
Deferred tax liabilities		66		105		104
Provisions		200		-		200
Defined benefit pension scheme deficit		4,417		3,822		4,544
		5,031		4,427		5,248
Total liabilities		14,993		14,485		15,441
Capital and reserves
Share capital		1,990		1,990		1,990
Share premium		1,269		1,269		1,269
Capital redemption reserve		109		109		109
Hedging reserve		(39)		159		155
Retained earnings		2,303		3,375		2,586
Total equity		5,632		6,902		6,109
Total equity and liabilities		20,625		21,387		21,550

 

 Consolidated Cash Flow Statement

for the six months ended 30 September 2015

		Unaudited six months ended 30 September 2015		Unaudited six months ended 30 September 2014		Year ended 31 March 2015
		£000		£000		£000
Operating activities
(Loss)/ profit for the period before tax		(426)		279		76
Adjustments for:
Net finance costs excluding pensions		92		103		184
Depreciation of property, plant and equipment		589		580		1,180
Amortisation of software		59		51		105
Amortisation of development costs		5		5		8
Profit on disposal of property plant  and equipment		(8)		(23)		(6)
Loss on disposals of intangibles		-		-		11
Share based payments		26		9		30
Difference between pension contributions paid and amounts recognised in the Income Statement		(53)		(50)		(99)
Decrease/(increase) in inventories		526		12		(272)
Decrease/ (increase) in receivables		735		(507)		(268)
(Decrease)/ increase in payables		(882)		(26)		160
Increase in provisions		-		-		174
Cash inflow from operations		663		433		1,283
Income taxes received		-		38		37
Net cash inflow from operating activities		663		471		1,320
Investing activities
Purchase of property, plant and equipment		(1,125)		(498)		(1,261)
Purchase of software		(9)		(70)		(120)
Disposal of property, plant and equipment		21		50		94
Net cash outflow from investing activities		(1,113)		(518)		(1,287)
Financing activities
Interest paid		(92)		(103)		(184)
Repayment of asset loans		(100)		(100)		(200)
Net invoice finance drawdown		484		533		217
Finance leases taken out		71		-		-
Net cash inflow/(outflow) from financing activities		363		330		(167)
Net (decrease)/ increase in cash and cash equivalents		(87)		283		(134)
Cash and cash equivalents at the start of the period		(291)		(157)		(157)
Cash and cash equivalents at the end of the period		(378)		126		(291)
Cash and cash equivalents compromise:
(Overdraft)/ cash at bank		(378)		126		(291)

 

Consolidated Statement of Changes in Equity

for the six months ended 30 September 2015

	Share capital	Share premium	Capital redemption reserve	Hedging reserve	Retained earnings	Attributable to equity holders of the parent
	£000	£000	£000	£000	£000	£000
At 1 April 2014	1,990	1,269	109	130	3,442	6,940
Profit for the period	-	-	-	-	204	204
Other comprehensive income for the period net of tax	-	-	-	29	(299)	(270)
Total comprehensive income	-	-	-	29	(95)	(66)
Share based payments	-	-	-	-	9	9
Deferred tax on employee share options	-	-	-	-	19	19
Total of transactions with shareholders	-	-	-	-	28	28
At 30 September 2014	1,990	1,269	109	159	3,375	6,902
Loss for the period	-	-	-	-	(188)	(188)
Other comprehensive income for the period net of tax	-	-	-	(4)	(609)	(613)
Total comprehensive income	-	-	-	(4)	(797)	(801)
Share based payments	-	-	-	-	21	21
Deferred tax on employee share options	-	-	-	-	(13)	(13)
Total of transactions with shareholders	-	-	-	-	8	8
At 1 April 2015	1,990	1,269	109	155	2,586	6,109
Loss for the period	-	-	-	-	(367)	(367)
Other comprehensive income for the period net of tax	-	-	-	(194)	59	(135)
Total comprehensive income	-	-	-	(194)	(308)	(502)
Share based payments	-	-	-	-	26	26
Deferred tax on employee share options	-	-	-	-	(1)	(1)
Total of transactions with shareholders	-	-	-	-	25	25
At 30 September 2015	1,990	1,269	109	(39)	2,303	5,632

Independent review report to Chamberlin plc

Introduction

We have been engaged by the Company to review the financial information in the half-yearly financial report for the six months ended 30 September 2015 which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity and the related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusion we have formed.

 

Directors' responsibilities                                                                                                         

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

As disclosed in Note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in Note 1.

 

Our responsibility

Our responsibility is to express to the Company a conclusion on the financial information in the half-yearly financial report based on our review.

 

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly financial report for the six months ended 30 September 2015 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 1.

GRANT THORNTON UK LLP
AUDITOR

Birmingham
23 November 2015

 

Notes to the Interim Financial statements

1              General information and accounting policies

This Interim Financial Report is unaudited, but has been reviewed by the Company's auditor having regard to the International Standard on Review Engagements (UK & Ireland) 2410 "Review of Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the UK. A copy of their unmodified review report is attached.

The interim condensed consolidated financial statements do not comprise the Group's statutory accounts as defined by section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 March 2015 were approved by the board of directors on 18 May 2015 and were filed at Companies House. The auditor's report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) or (3) of the Companies Act 2006.  

Basis of preparation

The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the AIM Rules issued by the London Stock Exchange.

Accounting policies

The principal accounting policies applied in preparing the interim Financial Statements comply with IFRS and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 March 2015.

No new standards or interpretations issued since 31 March 2015 have had a material impact on the accounting of the Group.

Hedge activities

At 30 September 2015 the Group held 10 months' worth of foreign currency forward contracts designated as hedges of expected future sales to customers in Europe for which the Group has highly probable forecasted transactions

Going concern

After making appropriate enquiries, the directors consider that the Group has adequate resources to continue in operation for the foreseeable future. In forming this view the directors have reviewed internal cashflow and profit forecasts in conjunction with the available headroom on the invoice finance and overdraft facility. For this reason, they continue to adopt the going concern basis in preparing the accounts.

2              Segmental analysis

For management purposes, the Group is organised into two operating divisions: Foundries and Engineering. The operating segments reporting format reflects the Group's management and internal reporting structures for the Chief Operating Decision Maker.

	Segmental revenue					Segmental operating  profit
	Unaudited  six months ended 30 Sep 2015 £000	Unaudited six months ended 30 Sep 2014 £000		Year ended 31 March 2015 £000		Unaudited six months ended 30 Sep 2015 £000	Unaudited six months ended 30 Sep 2014 £000	Year ended 31 March 2015 £000
Foundries	13,306	16,028		30,432		308	875	1,259
Engineering	4,733	5,054		10,403		338	300	988
Segmental results	18,039	21,082		40,835		646	1,175	2,247
Reconciliation of reported segmental operating profit to (loss)/ profit before tax
						Unaudited six months ended 30 Sep 2015 £000	Unaudited six months ended 30 Sep 2014 £000	Year ended 31 March 2015 £000
Segmental operating profit						646	1,175	2,247
Shared costs						(497)	(646)	(1,260)
Exceptional and non-underlying costs						(412)	(74)	(583)
Net finance costs						(163)	(176)	(328)
(Loss)/profit before tax						(426)	279	76

The Foundries segment is a supplier of iron castings, in raw or machined form, to a variety of industrial customers who incorporate the castings into their own products or carry out further machining or assembly operations on the castings before selling them on.  The Engineering segment provides manufactured and imported products to distributors and end-users. The products fall into the categories of door hardware, hazardous area lighting and control gear and cable management.

Financing and income tax are managed on a Group basis and are not allocated to operating segments.

3              Finance income and costs

	Unaudited six months ended 30 September 2015	Unaudited six months ended 30 September 2014	Year ended 31 March 2015
	£000	£000	£000
Interest on bank overdraft	(92)	(103)	(184)
Net interest on net defined benefit pension liability	(71)	(73)	(144)
	(163)	(176)	(328)

4              Income tax expense

An effective rate of tax for the six months to 30 September 2015 of 14% (30 September 2014: 27%) has been used in these interim statements.

The effective rate of tax is lower than the standard rate because of non-deductible expenses reducing the overall tax credit in the period. The 2014 effective rate of tax was higher than the standard rate because of non-deductible expenses for tax purposes increasing the tax expense.

The corporation tax rate fell from 21% for the year ended 31 March 2015 to 20% for the year ended 31 March 2016. Whilst the Summer 2015 Budget announced that the corporation tax rate will reduce to 19% and then to 18% by 2020, neither of these rate changes have been substantively enacted and as such are not incorporated into this period. It is not anticipated that the subsequent reduction to 18% will have a material effect on the Company's future current or deferred tax charges.

5              Earnings/(loss) per share

The calculation of earnings/(loss) per share is based on the profit attributable to shareholders and the weighted average number of ordinary shares in issue. In calculating the diluted earnings/(loss) per share, adjustment has been made for the dilutive effect of outstanding share options. Underlying earnings/(loss) per share, which excludes exceptional costs, net financing cost of pension obligation, administration costs of the pension scheme and share based compensation, less related tax thereon, as analysed below, has been disclosed as the Directors believe this allows a better assessment of the underlying trading performance of the Group.

	Unaudited six months ended 30 September 2015	Unaudited six months ended 30 September 2014	Year ended 31 March 2015
	£000	£000	£000
(Loss)/ earnings for basic earnings per share	(367)	204	16
Exceptional costs	285	-	417
Net financing cost and service cost on pension obligation	171	138	280
Share based payments charge	27	9	30
Taxation effect of the above	(97)	(31)	(153)
Earnings for underlying earnings per share	19	320	590

	Unaudited six months ended 30 September 2015	Unaudited six months ended 30 September 2014	Year ended 31 March 2015
	000	000	000
Weighted average number of ordinary shares	7,958	7,958	7,958
Adjustment to reflect dilutive shares under option	180	179	212
Diluted weighted average number of ordinary shares	8,138	8,137	8,170

As at 30 September 2015 there is no adjustment for the 180,177 shares under option for the basic loss per share calculation as they are required to be excluded from the weighted average number of shares for diluted loss per share as they are anti-dilutive for the period then ended.

6              Pensions

The Group operates a defined benefit pension scheme and a number of defined contribution pension schemes on behalf of its employees. For defined contribution schemes, contributions paid in the period are charged to the income statement. For the defined benefit scheme, actuarial calculations are performed in accordance with IAS 19 in order to arrive at the amounts to be charged in the income statement and recognised in the statement of comprehensive income. The defined benefit scheme is closed to new entrants and future accrual.

Under IAS 19, the Group recognises all movements in the actuarial funding position of the scheme in each period. This is likely to lead to volatility in shareholders' equity from period to period.

The IAS 19 figures are based on a number of actuarial assumptions as set out below, which the actuaries have confirmed they consider appropriate.  The projected unit credit actuarial cost method has been used in the actuarial calculations.

	30 September 2015	30 September 2014	31 March 2015
Salary increases	n/a	n/a	n/a
Pension increases (post 1997)	2.9%	3.1%	2.9%
Discount rate	3.7%	3.9%	3.2%
Inflation assumption - RPI	2.9%	3.1%	2.9%
Inflation assumption - CPI	1.8%	2.0%	1.8%

During the previous year the triennial valuation as at 1 April 2014 was completed. In return for maintaining the previous contribution arrangements and extending the deficit reduction period to 2028, the Company has given security over the Group's land and buildings to the pension scheme.

The demographic assumptions used for 30 September 2015, were the same as used in 31 March 2015, 30 September 2014 and the last full actuarial valuation performed as at 1 April 2014.

The defined benefit scheme funding has changed under IAS 19 as follows:

Funding status	Unaudited  six months to 30 September 2015 £000	Unaudited  six months to 30 September 2014 £000	Year to 31 March 2015 £000
Scheme assets at end of period	12,824	13,240	14,008
Benefit obligations at end of period	(17,241)	(17,062)	(18,552)
Deficit in scheme	(4,417)	(3,822)	(4,544)
Related deferred tax asset	883	764	909
Net pension liability	(3,534)	(3,058)	(3,635)

The decrease in the net pension liability since March 2015 is mainly due to a decrease in the value of liabilities as a consequence of an increase in bond yields increasing the discount rate, partially offset by a negative return on assets in the period.

7              Exceptional costs and non-underlying items

	Unaudited six months ended 30 September 2015	Unaudited six months ended 30 September 2014	Year ended 31 March 2015
	£000	£000	£000
Group reorganisation	285	-	314
Environmental clean-up	-	-	103
Exceptional costs	285	-	417
Share based payment charge	27	9	30
Defined benefit pension scheme administration costs	100	65	136
Non-underlying other operating expenses	412	74	583

Taxation
- tax effect of non-underlying other operating expenses	(82)	(16)	(122)
	330	58	461

During 2014 the Group rationalised its Foundry operations into one division, enabling the elimination of duplicate roles and implementation of best practice. Group reorganisation costs, including redundancy and recruitment, relate to this rationalisation.

Further reorganisation and redundancy costs were incurred during the period within the Foundry Division as a result of actions taken to reduce headcount in response to decreased revenues at the Leicester and Scunthorpe sites.

Environmental clean-up costs relate to exceptional costs incurred in the clean-up of the Scunthorpe site.

8              Net debt

	Unaudited six months ended 30 September 2015	Unaudited six months ended 30 September 2014	Year ended 31 March 2015
	£000	£000	£000
Financial assets
Cash at bank	-	126	-
	-	126	-
Financial liabilities
Bank overdraft	378	-	291
Current instalments due on finance leases	24	-	-
Current instalments due on asset finance loans	200	200	200
Invoice finance liability	3,385	3,217	2,901
Financial liabilities due in less than one year	3,987	3,417	3,392
Instalments due on finance leases in greater than one year	48	-	-
Instalments due on asset finance loans in greater than one year	300	500	400
Total financial liabilities	4,335	3,917	3,792
Net debt	4,335	3,791	3,792
Available facility	8,072	7,200	8,100
Maximum headroom	3,737	3,409	4,308

9              Interim report

Copies of this interim results statement will be available on the Group's website, www.chamberlin.co.uk, and from the Group's headquarters at Chuckery Road, Walsall, West Midlands, WS1 2DU.

 

END

 

 

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