TIDMCMH

RNS Number : 0748Z

Chamberlin PLC

19 May 2021

19 May 2021

Chamberlin plc

("Chamberlin" or the "Company")

Operational Update

Chamberlin plc (AIM: CMH.L), the specialist castings and engineering group , announces the following operational update.

T he restructuring of Chamberlin and Hill Castings Limited ("C&H") and the integration of C&H and Chamberlin PLC head office has now been completed in line with expected cost savings. The Company is also pleased to announce that C&H has won a 3-year contract to supply components for diesel engine generators commencing in July 2021.C&H has been informed that an existing Tier 1 customer has included the Company on a new low volume, high value 5-year programme to manufacture turbocharger bearing housings for a leading luxury sports car manufacturer, with supply commencing early 2022.

Chamberlin also announces that C&H continues to diversify its customer base, to reduce reliance on the automotive sector. C&H has launched an eCommerce operation to design and develop consumer products to be sold via the internet. Sales of kettle bells, the first products from this initiative are already being made from our new website www.ironfoundryweights.co.uk . Strong eCommerce growth is expected to come from new product development, including authentic 'retro' household and commercial products from our 130-year design archive, and from extending sales into the global marketplace.

Russell Ductile Castings continue to win work in railways, the renewables sector (particularly for offshore wind farms) and for major UK infrastructure projects in power and water. The total forward order book for RDC is strong and the workforce has been expanded by approximately 30%, compared with the same period last year, to meet demand.

Petrel announces that it has successfully completed the on-time supply of a significant MoD contract to supply specialist ATEX lighting for installation on a flagship vessel for the Royal Navy, putting it in a strong position for the award of further contracts. Following a period of strong demand, Petrel is also increasing its workforce to support an expansion of development and production capacity.

Chairman, Keith Butler-Wheelhouse, commented:

"The recently completed fund-raise has facilitated the restructuring of the C&H Foundry in Walsall and provides a sound platform for growth. Efforts are concentrated on replacing revenue at C&H, following the loss of major contracts at the end of 2020. Your Directors are confident that the Company is now well positioned to exploit the opportunities arising in the new financial year commencing 1 June 2021."

Enquiries:

 
Chamberlin plc                           T: 01922 707100 
 Kevin Nolan, Chief Executive 
 Neil Davies, Finance Director 
 
Cenkos Securities plc                    T: 020 7397 8900 
 (Nominated Adviser and Joint Broker) 
 Russell Cook 
 Katy Birkin 
Peterhouse Capital Limited               T: 020 7469 0930 
 (Joint Broker) 
 Heena Karani 
 Duncan Vasey 
 

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May 19, 2021 02:00 ET (06:00 GMT)

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