TIDMCMH

RNS Number : 6817E

Chamberlin PLC

09 July 2021

9 July 2021

Chamberlin plc

("Chamberlin" or the "Group")

Operational Update

Chamberlin (AIM: CMH.L), the specialist castings and engineering group, is pleased to provide the following trading update.

Following the loss of the BorgWarner contract late last year, and the consequential restructuring of operations and refinancing previously announced, Chamberlin will report a loss for the extended accounting period ended 31 May 2021. The Board is confident that as the substantial majority of the Group's restructuring costs and non-cash write downs will have been accounted for in the year ended 31 May 2021, Chamberlin will be well positioned to make a strong recovery in the new financial year which commenced on 1 June 2021.

As previously announced, we have initiated a number of business development initiatives at Chamberlin & Hill ("C&H") to diversify the customer portfolio in order to reduce reliance on the automotive sector. The main thrust of these initiatives are in the area of new consumer products where we have technical and design advantages where these can be sold primarily via ecommerce direct to the consumer. We have already received considerable interest in our growing gym equipment range and now are preparing to launch a range of premium quality cast iron cookware for distribution across Europe. We are pleased to be the only British foundry producing many of these new consumer products.

The Board is pleased to report the strengthening performance of Petrel, which is broadening its scope to include product hire and the provision of support services for new and existing safety lighting installations.

Russel Ductile Castings continues to outperform the Board's expectations and the Board sees great scope for further growth and improved profitability in the current financial year. Its growing success is largely driven by a lack of competition in the UK foundry industry for niche, low-volume, large capacity castings.

With revenues now stable, costs realigned to reflect the current operating base across the Group and exciting new potential growth opportunities, the Board anticipates that Chamberlin will see a return to profitability in the current financial year.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

Enquiries:

 
Chamberlin plc                           T: 01922 707100 
 Kevin Price, Chief Executive 
 Alan Tomlinson, Finance Director 
 
Cenkos Securities plc                    T: 020 7397 8900 
 (Nominated Adviser and Joint Broker) 
 Katy Birkin 
 Stephen Keys 
 
Peterhouse Capital Limited               T: 020 7469 0930 
 (Joint Broker) 
 Peter Greensmith 
 Duncan Vasey 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDSSMFMAEFSEEW

(END) Dow Jones Newswires

July 09, 2021 02:00 ET (06:00 GMT)

Chamberlin (LSE:CMH)
Historical Stock Chart
From Nov 2021 to Dec 2021 Click Here for more Chamberlin Charts.
Chamberlin (LSE:CMH)
Historical Stock Chart
From Dec 2020 to Dec 2021 Click Here for more Chamberlin Charts.