Half Yearly Results

RNS Number : 8655X

Chamberlin PLC

25 November 2014

 



AIM: CMH

CHAMBERLIN PLC

("Chamberlin" or "the Group")

Half Year Results

For the six months to 30 September 2014

Key Points

·      H1 results show continuing progress in business turnaround

-  cost reduction programme has aided return to profitability

·      Revenues up 8.2% to £21.1m (2013: £19.5m)

-  foundry division revenues up 8.5% to £16.0m 

-  engineering division revenues up 7.1% to £5.1m

·      Underlying* profit before tax of £0.4m (2013: loss of £0.6m)

On an IFRS basis, profit before tax of £0.3m (2013: loss of £1.2m)

·      Cash inflow from operations of £0.5m (2013: cash outflow of £0.3m)

·      Net debt at 30 September 2014 of £3.8m (31 March 2014: £3.6m and 30 September 2013: £2.3m)

·      Diluted underlying* earnings per share of 3.9p (2013: loss per share of 6.8p)

On an IFRS basis, basic earnings per share of 2.6p (2013: loss per share of 11.9p)

·      Post period, two major contract wins by Walsall foundry respectively worth:

-     €6.7m over four years

-     €26.0m over eight years

·      Board expects full year results to be in line with current market expectations

*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 for the first half show a significant improvement on the same period last year, and most importantly, Chamberlin has moved back into profitability.  This reflects a combination of factors including management actions to address the cost base, a strong performance from the Walsall foundry, helped by improved conditions in the turbocharger bearing housing market, and the engineering division delivering improved sales and profits.

Actions to deliver the ongoing turnaround of the business continue. The new executive team remains focused on measures to achieve further cost efficiencies and improve processes.  At the same time, we are working on new business development and further refining growth plans. The two major new contracts wins we announced on 17 October and 18 November are highly encouraging. While there are clear challenges, the whole organisation remains focused on our business turnaround plans and therefore we believe that the Group remains positioned to deliver current market forecasts for the full year."

Enquiries

Chamberlin plc Kevin Nolan, Chief Executive David Roberts, Finance Director		T: 020 3178 6378 (today) / 01922 707100
Charles Stanley Securities                                                                                                          (Nominated Adviser and Broker) Russell Cook / Carl Holmes		T: 020 7149 6000
KTZ Communications (Financial PR) Katie Tzouliadis / Deborah Walter		T: 020 3178 6378

 

CHAIRMAN'S STATEMENT

Introduction

Chamberlin's results for the first half of the financial year show a significant improvement on the same period last year with revenues up by 8.2% to £21.1m. Most importantly, the Group has moved back into profitability, with underlying profit before tax at £0.4m against an underlying loss of £0.6m last year. This encouraging improvement in trading results reflects a combination of factors including management actions to address the cost base, a strong performance from the Walsall foundry, which was helped by improved conditions in the turbocharger bearing housing market, and the engineering division also delivering improved sales and profits. 

Actions to deliver the ongoing turnaround of the business continue. The new executive team remains focused on measures to achieve further cost efficiencies and improve processes.  At the same time, we are working on business development and further refining growth plans. The two major new contracts wins we announced on 17 October and 18 November are highly encouraging and will help to support further expected progress in the second half of the year and beyond. 

Results

Revenues for the six months to 30 September 2014 were 8.2% up on the same period last year at £21.1m (2013: £19.5m). This helped to support a turnaround in profitability, with underlying profit before tax of £0.4m against an underlying loss before tax of £0.6m in 2013.  Diluted underlying earnings per share was 3.9p (2013: loss per share of 6.8p).  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.

The Group also moved back into profit on IFRS basis.  Profit before tax was £0.3m (2013: loss of £1.2m) and the diluted earnings per share was 2.5p (2013: loss per share of 11.9p).

The net debt position at 30 September 2014 showed an increase of £0.2m to £3.8m from the net debt position at 31 March 2014 of £3.6m (30 September 2013: £2.3m).  This reflected increased receivables of £0.5m.  As previously reported, the Group has new debt facilities in place totalling £7.2m.  Over the period, the Group generated operating cash inflow of £0.5m (2013: outflow of £0.3m). 

Dividend

No dividend is proposed for the period under review.

Operations

Revenues from the foundry division, which comprises three foundries at Walsall, Leicester and Scunthorpe, increased by 8.5% to £16.0m (2013: £14.8m) and the division contributed an operating profit of £0.9m against an operating loss of £0.3m in the same period last year. The sales growth and our continued focus on cost reduction drove the Group's return to profitability.

The Walsall foundry, which specializes in producing high volume small castings with complex internal geometry, led the foundry division's revenue growth. The foundry is a well-established supplier of bearing housings for automotive turbochargers.  Revenues at Walsall increased by 17.8% on the prior year.  The two major contract wins that we announced on 17 October and 18 November will help to underpin growth.  Both wins were for the supply of turbo charger bearing housing for diesel engines in passenger cars.  They are respectively worth €6.7 million over four years and €26.0m over eight years and commence on 1 January 2015. 

As previously reported, revenues at the Scunthorpe foundry, which produces heavy castings, were adversely affected by market softening in power, construction and mining sectors. Demand has remained subdued and revenues are down 5.1% on the same period last year.  We are continuing to focus on the foundry's cost base and are seeing some signs of returning volumes with existing customers.

The foundry at Leicester, which produces medium castings, showed growth of 6.4% over the same period last year. Operationally, the foundry's position has improved with reduced levels of scrap and significant productivity improvement.

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, continues to make steady progress. Revenues were 7.1% higher than the same period last year at £5.1m (2013: £4.7m) and the division's operating profit contribution improved to £0.3m from £0.2m last year.

Outlook

The new executive team is making progress with business turnaround and Chamberlin's move back into profitability is encouraging.  There is still work to be done and we are paying particular attention to the Scunthorpe and Leicester foundries in order to deliver improvements to their respective performances.

Looking ahead, while there are clear challenges, we remain focused on our business turnaround plans and believe that the Group remains positioned to deliver current market forecasts for the full year. 

Keith Butler-Wheelhouse

Chairman

24 November 2014

Consolidated Income Statement

for the six months ended 30 September 2014

Note		Unaudited six months ended 30 September 2014			Unaudited six months ended 30 September 2013			Year ended 31 March 2014
		Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total	Underlying	# Non-underlying	Total
		£000	£000	£000	£000	£000	£000	£000	£000	£000
Revenue		21,082	-	21,082	19,487	-	19,487	38,562	-	38,562
Cost of sales		(17,089)	-	(17,089)	(16,821)	-	(16,821)	(32,413)	-	(32,413)
Gross profit		3,993	-	3,993	2,666	-	2,666	6,149	-	6,149
Other operating expenses	7	(3,464)	(74)	(3,538)	(3,274)	(443)	(3,717)	(6,905)	(1,142)	(8,047)
Operating profit/(loss)		529	(74)	455	(608)	(443)	(1,051)	(756)	(1,142)	(1,898)
Finance costs	3	(103)	(73)	(176)	(31)	(80)	(111)	(62)	(156)	(218)
Profit/(loss) before tax		426	(147)	279	(639)	(523)	(1,162)	(818)	(1,298)	(2,116)
Tax (expense)/credit	4	(106)	31	(75)	95	120	215	214	298	512
Profit/(loss) for the period from continuing operations attributable to equity holders of the Parent Company		320	(116)	204	(544)	(403)	(947)	(604)	(1,000)	(1,604)
Earnings/(loss) per share:
Basic	5			2.6p			(11.9)p			(20.2)p
Underlying	5	4.0p			(6.8)p			(7.6)p
Diluted	5			2.5p			(11.9)p			(20.2)p
Diluted underlying	5	3.9p			(6.8)p			(7.6)p

^# 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 2014

	Unaudited six months ended  30 September 2014		Unaudited six months ended 30 September 2013		Year ended 31 March  2014
		£000		£000		£000
Profit/(loss) for the period		204		(947)		(1,604)
Other comprehensive income
Reclassification for cash flow hedges included in sales		(145)		131		162
Movements in fair value on cash flow hedges taken to other comprehensive income		181		248		199
Deferred tax on movements in cash flow hedges		(7)		(82)		(79)
Net other comprehensive income/(expense) that may be recycled to profit and loss		29		297		282
Re-measurement (losses)/gains on pension assets and liabilities		(379)		8		338
Deferred/ current tax on re-measurement (losses)/gains on pension assets and liabilities		80		(2)		(78)
Movement on deferred tax on re-measurement gains relating to tax rate change		-		(116)		(104)
Net other comprehensive (expense)/income that will not  be reclassified to profit and loss		(299)		(110)		156
Other comprehensive (expense)/income for the period net of tax		(270)		187		438
Total comprehensive (expense)/ income for the period attributable to equity holders of the Parent Company		(66)		(760)		(1,166)

Consolidated Balance Sheet

At 30 September 2014

		Unaudited 30 September 2014		Unaudited 30 September 2013		31 March 2014
		£000		£000		£000
Non-current assets
Property, plant and equipment		7,798		8,416		7,907
Intangible assets		470		508		456
Deferred tax assets		1,219		1,103		1,196
		9,487		10,027		9,559
Current assets
Financial assets		126		-		-
Inventories		3,722		3,615		3,734
Trade and other receivables		8,052		7,392		7,508
Current tax		-		-		38
		11,900		11,007		11,280
Total assets		21,387		21,034		20,839
Current liabilities
Financial liabilities		3,417		2,336		3,041
Trade and other payables		6,615		7,266		6,641
Provisions		26		26		26
Current tax		-		95		-
		10,058		9,723		9,708
Non-current liabilities
Financial liabilities		500		-		600
Defined benefit pension scheme deficit		3,822		3,864		3,493
Deferred tax liabilities		105		66		98
		4,427		3,930		4,191
Total liabilities		14,485		13,653		13,899
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		159		145		130
Retained earnings		3,375		3,868		3,442
Total equity		6,902		7,381		6,940
Total equity and liabilities		21,387		21,034		20,839

 Consolidated Cash Flow Statement

for the six months ended 30 September 2014

		Unaudited six months ended 30 September 2014		Unaudited six months ended 30 September 2013		Year ended 31 March 2014
		£000		£000		£000
Operating activities
Profit/ (loss) for the period before tax		279		(1,162)		(2,116)
Adjustments for:
Net finance costs excluding pensions		103		31		62
Depreciation of property, plant and equipment		580		613		1,259
Amortisation of software		51		50		82
Amortisation of development costs		5		62		86
Profit on disposal of property plant  and equipment		(23)		(1)		(29)
Share based payments		9		2		9
Difference between pension contributions paid and amounts recognised in the Income Statement		(50)		(17)		(82)
Decrease/(increase) in inventories		12		(284)		(403)
(Increase)/decrease in receivables		(507)		761		627
Decrease in payables		(26)		(391)		(992)
Cash in/(out) flow from operations		433		(336)		(1,497)
Income taxes received		38		-		-
Net cash in/(out) flow from operating activities		471		(336)		(1,497)
Investing activities
Purchase of property, plant and equipment		(498)		(847)		(1,018)
Purchase of software		(70)		-		(4)
Disposal of property, plant and equipment		50		18		80
Net cash outflow from investing activities		(518)		(829)		(942)
Financing activities
Interest paid		(103)		(31)		(62)
Dividends paid		-		(159)		(159)
(Repayment)/issue of asset loans		(100)		-		800
Net invoice finance drawdown		533		-		2,684
Net cash inflow/(outflow) from financing activities		330		(190)		3,263
Net increase/(decrease) in cash and cash equivalents		283		(1,355)		824
Cash and cash equivalents at the start of the period		(157)		(981)		(981)
Cash and cash equivalents at the end of the period		126		(2,336)		(157)
Cash and cash equivalents compromise:
Cash at bank/(overdraft)		126		(2,336)		(157)

Consolidated Statement of Changes in Equity

for the six months ended 30 September 2014

	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 2013	1,990	1,269	109	(152)	5,077	8,293
Loss for the period	-	-	-	-	(947)	(947)
Other comprehensive income for the period net of tax	-	-	-	297	(110)	187
Total comprehensive income	-	-	-	297	(1,057)	(760)
Dividends paid	-	-	-	-	(159)	(159)
Share based payments	-	-	-	-	2	2
Deferred tax on employee share options	-	-	-	-	5	5
Total of transactions with shareholders	-	-	-	-	(152)	(152)
At 30 September 2013	1,990	1,269	109	145	3,868	7,381
Loss for the period	-	-	-	-	(657)	(657)
Other comprehensive income for the period net of tax	-	-	-	(15)	266	251
Total comprehensive income	-	-	-	(15)	(391)	(406)
Share based payments	-	-	-	-	7	7
Deferred tax on employee share options	-	-	-	-	(42)	(42)
Total of transactions with shareholders	-	-	-	-	(35)	(35)
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

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 2014 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 2014 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 1.

GRANT THORNTON UK LLP
AUDITOR

Birmingham
24 November 2014

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 2014 were approved by the board of directors on 21 May 2014 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 IFRSs 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, comply with IFRS, applied in preparing the Interim Financial Statements, and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 March 2014.

No new standards or interpretations issued since 31 March 2014 have had a material impact on the accounting of the Group.

Hedge activities

At 30 September 2014 the Group held 11 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 cash flow 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  6 months ended 30 Sep 2014 £000	Unaudited 6 months ended 30 Sep 2013 £000		Year ended 31 March 2014 £000		Unaudited 6 months ended 30 Sep 2014 £000	Unaudited 6 months ended 30 Sep 2013 £000	Year ended 31 March 2014 £000
Foundries	16,028	14,766		29,056		875	(282)	(244)
Engineering	5,054	4,721		9,506		300	241	672
Segmental results	21,082	19,487		38,562		1,175	(41)	428
Reconciliation of reported segmental operating profit/(loss) to profit/(loss) before tax
						Unaudited 6 months ended 30 Sep 2014 £000	Unaudited 6 months ended 30 Sep 2013 £000	Year ended 31 March 2014 £000
Segmental operating profit/(loss)						1,175	(41)	428
Shared costs						(646)	(633)	(1,184)
Exceptional and non-underlying costs						(74)	(377)	(1,142)
Net finance costs						(176)	(111)	(218)
Profit/(loss) before tax						279	(1,162)	(2,116)

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 2014	Unaudited six months ended 30 September 2013	Year ended 31 March 2014
	£000	£000	£000
Interest on bank overdraft	(103)	(31)	(62)
Net interest on net defined benefit pension liability	(73)	(80)	(156)
	(176)	(111)	(218)

 

4              Income tax expense

An effective rate of tax for the six months to 30 September 2014 of 27% (30 September 2013: 19%) has been used in these interim statements.

The effective rate of tax is higher than the standard rate because of non-deductible expenses for tax purposes. The 2013 effective rate of tax was lower than the standard rate because of the change in the corporation tax rate being applied to deferred tax assets, and non-deductible expenses for tax purposes.

The corporation tax rate fell from 23% for the year ended 31 March 2014 to 21% for the year ended 31 March 2014. The corporation tax rate will fall to 20% from 1 April 2015, a rate change which was substantively enacted on 2 July 2013. It is not anticipated that the subsequent reduction to 20% 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 per share, adjustment has been made for the dilutive effect of outstanding share options. Underlying earnings/(loss) per share, which excludes 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 2014	Unaudited six months ended 30 September 2013	Year ended 31 March 2014
	£000	£000	£000
Earnings/(loss) for basic earnings per share	204	(947)	(1,604)
Exceptional costs	-	377	1,002
Net financing cost and service cost on pension obligation	138	144	287
Share based payments charge	9	2	9
Taxation effect of the above	(31)	(120)	(298)
Earnings/(loss) for underlying earnings per share	320	(544)	(604)

	Unaudited six months ended 30 September 2014	Unaudited six months ended 30 September 2013	Year ended 31 March 2014
	000	000	000
Weighted average number of ordinary shares	7,958	7,958	7,958
Adjustment to reflect dilutive shares under option	179	-	-
Diluted weighted average number of ordinary shares	8,137	7,958	7,958

As at 30 September 2013 and 31 March 2014 respectively there is no adjustment for the 235,483 and 211,005 shares under option as they are required to be excluded from the weighted average number of shares for diluted (loss)/earnings 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 Company 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 2014	30 September 2013	31 March 2014
Salary increases	n/a	n/a	n/a
Pension increases (post 1997)	3.1%	2.5%	3.2%
Discount rate	3.9%	4.3%	4.3%
Inflation assumption - RPI	3.1%	3.2%	3.3%
Inflation assumption - CPI	2.0%	2.1%	2.2%

During the period the triennial valuation as at 1 April 2013 was completed. The funding contributions for the full year are in line with those reported at the year end.

The demographic assumptions used for 30 September 2014, were the same as used in 31 March 2014, 30 September 2013 and the last full actuarial valuation performed as at 1 April 2013.

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

Funding status	Unaudited  6 months to 30 September 2014 £000	Unaudited  6 months to 30 September 2013 £000	Year to 31 March 2014 £000
Scheme assets at end of period	13,240	12,768	12,856
Benefit obligations at end of period	(17,062)	(16,632)	(16,349)
Deficit in scheme	(3,822)	(3,864)	(3,493)
Related deferred tax asset	764	773	699
Net pension liability	(3,058)	(3,091)	(2,794)

The increase in the net pension liability is mainly due to an increase in the value of liabilities as a consequence of a reduction in bond yields decreasing the discount rate.

 

7              Exceptional costs and non-underlying items

	Unaudited six months ended 30 September 2014	Unaudited six months ended 30 September 2013	Year ended 31 March 2014
	£000	£000	£000
Prior CEO leaving costs	-	377	307
Group reorganisation	-	-	695
Exceptional costs	-	377	1,002
Share based payment charge/(credit)	9	2	9
Defined benefit pension scheme administration costs	65	64	131
Non-underlying other operating expenses	74	443	1,142

Taxation
- tax effect of non-underlying other operating expenses	(16)	(102)	(262)
	58	341	880

Prior CEO leaving costs relate to contractual payments to be made to the former CEO, Tim Hair, and costs associated with the recruitment of the current CEO, Kevin Nolan.

During 2014 the Group rationalized 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.

8              Net debt

	Unaudited six months ended 30 September 2014	Unaudited six months ended 30 September 2013	Year ended 31 March 2014
	£000	£000	£000
Financial assets
Cash at bank	126	-	-
	126	-	-
Financial liabilities
Bank overdraft	-	2,336	157
Current instalments due on asset finance loans	200	-	200
Invoice finance liability	3,217	-	2,684
Financial liabilities due in less than 1 year	3,417	2,336	3,041
Instalments due on asset finance loans in greater than 1 year	500	-	600
Total financial liabilities	3,917	2,336	3,641
Net debt	3,791	2,336	3,641
Available facility	7,200	5,000	7,300
Available headroom	3,409	2,664	3,659

9              Dividends

	Unaudited six months ended 30 September 2014	Unaudited six months ended 30 September 2013	Year ended 31 March 2014
Paid equity dividends on ordinary shares
2014 final dividend of nil pence per share (2013: 2.0p per share)	-	159	159

The Board has suspended the payment of an interim dividend until justified by the trading performance of the Group.

10           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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