Chamberlin PLC Publication of Audited Accounts and Trading Update
RNS Number : 9290L
16 September 2021
(the "Company" or Group")
Publication of Audited Accounts and Trading Update
Chamberlin plc (AIM: CMH.L), the specialist castings and
engineering group, provides the following update.
-- Company expects to publish audited accounts in late November 2021;
-- Revenue of GBP26 million and loss of not less than GBP4.0
million (unaudited) for the 14 month period ended 31 May 2021 in
line with management's expectations; and
-- Encouraging start to current financial year; leading to
expectation of stronger levels of sales growth and return to
profitability in second half of year.
The COVID-19 pandemic has significantly impacted the
availability of sufficient resources to support the audit
timetable, compounded further by the change in the auditor and a
new management team, following the re-structuring of the Company.
Further to the announcement dated 14 May 2021, the Company now
expects to publish its audited accounts for the 14 month period
ended 31 May 2021 ("2021 Accounts"), in late November 2021.
The Board has previously indicated that the outturn for the
period to 31 May 2021 will show a loss and the Board expects this
to be not less than GBP4.0 million, on turnover for the period of
GBP26 million, including sales of GBP7.5 million to BorgWarner
(unaudited) (prior to loss of the BorgWarner contract). This loss
contains the majority of the restructuring and rationalisation
costs necessary to stabilise the Group for the future.
The Board is pleased to report the following trading update. The
current financial year has started well with Group sales for the
first quarter in line with management's expectations. Net debt at
31 August 2021, including asset leases of GBP1.9 million, was
reduced to GBP3.0 million (unaudited) (30 September 2020: GBP4.6
million) and current cash headroom is comfortably in line with
management expectations at GBP1.1 million. The Company has
commenced a review of the use of its substantial property assets
with the objective of strengthening the balance sheet and improving
operational and investment returns from Group resources.
The Board expects sales for the remainder of the first half of
the current financial year ending 30 November 2021, to be at least
in line with management's expectations but now anticipate stronger
levels of sales growth and profitability in the second half of the
year resulting in an expected earnings per share for the current
financial year ending 31 May 2022 of not less than 1p.
The COVID-19 pandemic continues to present global challenges to
trading conditions, including escalating raw material costs, supply
chain shortages and a slowdown in the automotive industry due to
widely publicised electronic control unit (ECU) availability. In
response to these challenges, the management team continues to
reduce costs, improve efficiencies, and optimise pricing to improve
margins and restore sustainable profitability to the Group.
The new Board has implemented a strategy to adapt to these
changing conditions and the Company is directing resources to new
product lines to rapidly reduce reliance on the automotive
industry. The Board's aim over the medium term is to replace the
majority of the Group's traditional, low margin contract-based
production, with much higher margin, premium consumer products in
markets with a strong opportunity for growth and where the Group
can innovate, control distribution and sales to effect real and
sustainable growth in revenue and profits.
Launch of "Emba" brand
The Company is making excellent progress with the development of
its premium quality cast iron cookware - the Emba Cookware Range
and expects to officially launch its initial product range on-line
in November 2021. The rising popularity for premium quality, high
value cast iron cookware is growing rapidly in the UK and the Board
expects Chamberlin's Emba brand to be at the forefront of this
market as the only true UK based designer and manufacturer.
Iron Foundry Weights
Iron Foundry Weights, Chamberlin's new trading name for its
specialist home and commercial gym equipment business, is
developing rapidly. October 2021 will see the release of its new
range of precision machined "indestructible" dumbbells, with our
unique "Shrink-Fit" assembly technology. The Company has recently
signed an endorsement agreement with Lauren Recci, British
Powerlifting Champion, and the Company will be show casing its new
product range at The Arnold Sports Festival 2021.
Petrel, Chamberlin's specialist lighting business, is trading
profitably and exceeding the Board's expectations with a very
strong start to the year. Petrel's performance in the second half
of the year will be improved further by the commencement of a new
venture into specialist lighting hire, which will commence next
month. Petrel will be the only UK manufacturer of hazardous/harsh
area lighting to offer a direct-to-market hire service when it
launches in October 2021.
Russell Ductile Castings
The Company's Scunthorpe foundry operation continues to operate
at, or near, full production levels in response to growing customer
demand. Costs are being managed closely and operating profit is
expected to exceed management expectations for the quarter ended 31
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.
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)
Peterhouse Capital Limited T: 020 7469 0930
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September 16, 2021 02:00 ET (06:00 GMT)
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