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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Chamberlin Plc | LSE:CMH | London | Ordinary Share | GB0001870228 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.70 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Engineering Services | 20.72M | -125k | -0.0007 | -10.00 | 1.26M |
From May 2019 to May 2024
TIDMCMH
RNS Number : 6562X
Chamberlin PLC
28 November 2017
28 November 2017
AIM: CMH
CHAMBERLIN PLC
("Chamberlin" or "the Company" or "the Group")
Half Year Results
For the six months to 30 September 2017
Key Points
-- Total H1 revenues increased to GBP17.9m (2016: GBP14.7m), in line with management expectations
-- Gross margin decreased to 15.9% (2016: 20.5%) - impacted by production issues within the foundry business:
- technical difficulties at the new machining facility created cost inefficiencies and extended cycle times
-- Underlying loss before tax of GBP574,000 (2016: GBP38,000). Statutory loss before tax of GBP810,000 (2016: GBP370,000)
-- Underlying loss per share 6.7p (2016: 1.0p). Statutory loss per share 13.8p (2016: 4.9p) -- Foundries revenues up 30.4% to GBP12.4m - driven mainly by increased demand for turbo charger bearing housings -- Engineering revenues up 6.7% to GBP5.5m - satisfactory performances at both Petrel and Exidor
-- Management continues to work with the machine and tooling suppliers to rectify issues at machining operation and, while progress is being made, it is now clear that resolution of the technical problems is likely to take longer than expected and therefore the Group's performance will be materially impacted
- a claim against the machine supplier has been initiated and a constructive dialogue is underway.
- the Company expects to reach a satisfactory settlement and further information will be provided in due course.
-- Turbo charger bearing housings remains a key growth driver for the Group, with demand growing
Chairman, Keith Butler-Wheelhouse, commented:
"While the first half of the year has delivered on our revenue expectations, margins have suffered due to the difficulties we have encountered with the start-up of our new machining facility. We are working closely with the machine and tooling suppliers to resolve the technical problems that have had a significant impact on our foundry margins, however it is now clear that resolution of the technical problems is likely to take longer than expected.
"As a result, cost inefficiencies, including the use of subcontractors and extended cycle times, will adversely affect the Group's performance. Raw material prices in the foundry operation have also increased. These costs will be recovered through a customer surcharge mechanism, however there is a short-term negative impact, given the time lag between price increases and their recovery.
"The Company is now actively pursuing a claim against the supplier of the new machining cells in view of the persistent technical failures and, expects to reach a satisfactory settlement. Further information regarding this will be provided in due course.
"Our two engineering operations, Exidor and Petrel, continued to trade in line with expectations, and together these businesses delivered operating margin of 6.0% in the first half of the year, in line with the same period in 2016.
"Looking ahead to the full year, management still expects Group revenues to be substantially ahead of the prior year, but its profitability will be materially impacted. Demand for turbo charger bearing housings, a key growth driver for the Group, continues to grow."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014
Enquiries
Chamberlin plc T: 020 3178 6378 (today) Kevin Nolan, Chief Executive / 01922 707100 David Roberts, Finance Director Smith & Williamson Corporate T: 020 7131 4000 Finance Limited (Nominated Adviser and Broker) Russell Cook, Katy Birkin KTZ Communications T: 020 3178 6378 (Financial PR) Katie Tzouliadis, Irene Bermont-Penn, Emma Pearson
CHAIRMAN'S STATEMENT
Introduction
The Group's first half revenues are in line with management expectations, reflecting overall good levels of demand across the foundry and engineering businesses. However, margins within the Group's foundry businesses have been adversely affected by production issues. At the new machining facility technical difficulties have created cost inefficiencies and extended cycle times. The Company is addressing these issues and is working very closely with the machine and tooling suppliers to rectify the situation.
Results
The Group generated revenues of GBP17.9m in the six months to September 2017 (2016: GBP14.7m).
The Group's gross profit was down to GBP2.8m (2016: GBP3.0m), resulting in gross margin of 15.9% (2016: 20.5%). This reflected the cost inefficiencies within our foundry businesses, principally associated with the start-up of our new machining facility.
Underlying loss before tax was GBP574,000 (2016: loss of GBP38,000) and the underlying loss per share was 6.7p (2016: loss of 1.0p).
On a statutory basis the Group generated a loss of GBP1,099,000 (2016: loss of GBP391,000). This is after impairment of deferred tax assets of GBP374,000 (2016: GBPnil). The statutory loss per share was 13.8p (2016: loss of 4.9p).
The net debt position at 30 September 2017 was GBP8.2m (30 September 2016: GBP5.3m; 31 March 2017: GBP6.8m). The Group has debt facilities of GBP9.1m.
Pension
The Group's net pension liability has fallen to GBP4.9m (31 March 2017: GBP5.2m). This was due to a decrease in the value of liabilities as a consequence of an increase in bond yields and therefore the discount rate. The triennial valuation as at 1 April 2016 was concluded in the period and has resulted in the current level of monthly cash payments paid into the scheme being maintained.
Operations
The two foundries at Walsall and Scunthorpe generated total revenues of GBP12.4m (2016: GBP9.5m). The new Walsall machining facility generated incremental revenues of GBP0.8m, with the balance of the sales increase being driven by higher demand for turbo charger bearing housings. Despite this strong growth, our foundry activities generated an operating loss of GBP0.2m (2016: profit of GBP0.3m) which mainly reflected technical difficulties at the new machining facility.
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 increase by 6.7% to GBP5.5m (2016: GBP5.1m). The division achieved an operating profit of GBP0.3m (H1 2016: GBP0.3m), a rise of 5.8%.
Outlook
Management expects full year revenues to be substantially ahead of the prior year, in particular as demand for turbo charger bearing housings continues to grow. While this is encouraging, the technical problems that have had a significant impact on foundry margins remain. The team is currently working closely with the machine and tooling suppliers, however it is now clear that the resolution of the technical problems is likely to take longer than expected. As a result, cost inefficiencies, including the use of subcontractors and extended cycle times, will materially impact the Group's performance. Raw material prices in the foundry operation have also increased. These costs will be recovered through a customer surcharge mechanism, however there is a short-term negative impact, given the time lag between price increases and their recovery.
The Company is now actively pursuing a claim against the supplier of the new machining cells in view of the persistent technical failures, and a constructive negotiation has started. We expect to reach a satisfactory settlement, and further information regarding this will be provided in due course.
Keith Butler-Wheelhouse
Chairman
27 November 2017
Consolidated Income Statement
for the six months ended 30 September 2017
Hot Features
Premium
Unaudited Unaudited
six months ended six months ended
30 September 30 September Year ended
Note 2017 2016 31 March 2017
--------------------------------------- -------------------------- ------------
# # #
Underlying Non-underlying Total Underlying Non-underlying Total Underlying Non-underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2 17,906 - 17,906 14,661 - 14,661 32,119 - 32,119
Cost of sales (15,058) - (15,058) (11,660) - (11,660) (25,173) - (25,173)
Gross profit 2,848 - 2,848 3,001 - 3,001 6,946 - 6,946
Other
operating
expenses 7 (3,280) (172) (3,452) (2,960) (252) (3,212) (6,203) (365) (6,568)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
Operating
(loss)/
profit (432) (172) (604) 41 (252) (211) 743 (365) 378
Finance costs 3 (142) (64) (206) (79) (80) (159) (164) (160) (324)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
(Loss)/ profit
before tax (574) (236) (810) (38) (332) (370) 579 (525) 54
Tax credit/
(expense) 4 40 (329) (289) (83) 66 (17) (205) 105 (100)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
(Loss)/ profit
for the
period
from
continuing
operations (534) (565) (1,099) (121) (266) (387) 374 (420) (46)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
Discontinued
operations
Profit/ (loss)
for the
period
from
discontinued
operations - - - 47 (51) (4) 219 (1,146) (927)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
(Loss)/ profit
for the
period
from
continuing
operations
attributable
to equity
holders
of the Parent
Company (534) (565) (1,099) (74) (317) (391) 593 (1,566) (973)
========== ============== =========== ========== ============== ========= ========== ============== ============
(Loss)/
earnings
per share from
continuing
operations:
Basic 5 (13.8)p (4.9)p (0.6)p
Underlying 5 (6.7)p (1.0)p 4.7p
Diluted 5 (13.8)p (4.9)p (0.6)p
Diluted
underlying 5 (6.7)p (1.0)p 4.5p
Earnings/
(loss)
per share
from
discontinued
operations:
Nil
Basic 5 - p (11.6)p
Underlying 5 - 0.1p 2.8p
Nil
Diluted 5 - p (11.6)p
Diluted
underlying 5 - 0.1p 2.6p
Total (loss)/
earnings per
share:
Basic 5 (13.8)p (4.9)p (12.2)p
Underlying 5 (6.7)p (0.9)p 7.5p
Diluted 5 (13.8)p (4.9)p (12.2)p
Diluted
underlying 5 (6.7)p (0.9)p 7.1p
(#) 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 2017
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Loss for the period (1,099) (391) (973)
Other comprehensive
income
Reclassification
for cash flow
hedges included
in sales (152) (593) (87)
Movements in fair
value on cash
flow hedges taken
to other comprehensive
income 165 253 419
Deferred tax on
movements in cash
flow hedges (2) 61 (60)
Movement on deferred
tax relating to
rate change - - 1
-------------- -------------- ------------
Net other comprehensive
expense that may
be recycled to
profit and loss 11 (279) 271
Re-measurement
gains/ (losses)on
pension assets
and liabilities 291 (2,538) (612)
Deferred/ current
tax on re-measurement
(losses)/ gains
on pension assets
and liabilities (55) 507 122
Movement on deferred
tax on measurement
losses relating
to rate change - - (52)
-------------- -------------- ------------
Net other comprehensive
income/(expense)
that will not
be reclassified
to profit and
loss 236 (2,031) (542)
-------------- -------------- ------------
Other comprehensive
expense for the
period net of
tax 247 (2,310) (271)
Total comprehensive
expense for the
period attributable
to equity holders
of the Parent
Company (852) (2,701) (1,244)
============== ============== ============
Consolidated Balance Sheet
At 30 September 2017
Unaudited Unaudited
30 September 30 September 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Non-current assets
Property, plant
and equipment 10,380 8,878 10,179
Intangible assets 424 402 461
Deferred tax
assets 1,141 1,936 1,498
-------------- -------------- ---------
11,945 11,216 12,138
Current assets
Inventories 3,367 3,165 3,347
Trade and other
receivables 7,617 7,047 7,556
10,984 10,212 10,903
-------------- -------------- ---------
Total assets 22,929 21,428 23,041
============== ============== =========
Current liabilities
Financial liabilities 6,246 4,484 5,520
Trade and other
payables 6,579 6,262 6,899
12,825 10,746 12,419
-------------- -------------- ---------
Non-current liabilities
Financial liabilities 1,972 823 1,308
Deferred tax
liabilities 17 59 27
Provisions 200 200 200
Defined benefit
pension scheme
deficit 4,850 7,182 5,209
7,039 8,264 6,744
Total liabilities 19,864 19,010 19,163
-------------- -------------- ---------
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 (61) (622) (72)
Retained earnings (242) (328) 582
-------------- -------------- ---------
Total equity 3,065 2,418 3,878
-------------- -------------- ---------
Total equity and
liabilities 22,929 21,428 23,041
============== ============== =========
Consolidated Cash Flow Statement
for the six months ended 30 September 2017
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Operating activities
(Loss)/ profit for
the period before
tax (810) (370) 54
Adjustments for:
Net finance costs
excluding pensions 142 79 164
Depreciation of property,
plant and equipment 686 561 1,125
Amortisation of software 50 34 90
Amortisation of development
costs 1 4 7
Profit on disposal
of property plant
and equipment (21) - (1)
Share based payments 39 26 28
Difference between
pension contributions
paid and amounts
recognised in the
Income Statement (67) (48) (95)
Increase in inventories (20) (298) (676)
Increase in receivables (388) (903) (1,664)
Increase in payables 229 264 1,220
Cash (outflow)/ inflow
from continuing operations (159) (651) 252
Cash (outflow)/ inflow
from discontinued
operations (142) 13 (358)
Net cash outflow
from operating activities (301) (638) (106)
Investing activities
Purchase of property,
plant and equipment (887) (1,385) (3,732)
Purchase of software (14) (2) (41)
Development costs - (52) (133)
Disposal of property,
plant and equipment 21 10 9
-------------- -------------- -----------
Net cash outflow
from investing activities (880) (1,429) (3,897)
Financing activities
Interest paid (142) (79) (164)
Repayment of asset
loans (81) (81) (162)
Net invoice finance
drawdown 1,194 1,472 1,421
Import loan facility
(repayment)/ drawdown (879) - 1,235
Finance leases taken
out 891 672 1,583
Net cash inflow from
financing activities 983 1,984 3,913
-------------- -------------- -----------
Net decrease in cash
and cash equivalents (198) (83) (90)
Cash and cash equivalents
at the start of the
period (216) (126) (126)
-------------- -------------- -----------
Cash and cash equivalents
at the end of the
period (414) (209) (216)
============== ============== ===========
Cash and cash equivalents
included in discontinued
operations (474) (466) (332)
Cash and cash equivalents
for continuing operations 60 675 116
Cash and cash equivalents
compromise:
Overdraft (414) (209) (216)
============== ============== ===========
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2017
Attributable
to equity
Capital holders
Share Share redemption Hedging Retained of the
capital premium reserve reserve earnings parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2016 1,990 1,269 109 (343) 2,068 5,093
Loss for the
period - - - - (391) (391)
Other comprehensive(expense
for the period
net of tax - - - (279) (2,031) (2,310)
--------- --------- ------------ --------- ----------- --------------
Total comprehensive
expense - - - (279) (2,422) (2,701)
Share based payments - - - - 26 26
Total of transactions
with shareholders - - - - 26 26
At 30 September
2016 1,990 1,269 109 (622) (328) 2,418
Loss for the
period - - - - (582) (582)
Other comprehensive
income for the
period net of
tax - - - 550 1,489 2,039
--------- --------- ------------ --------- ----------- --------------
Total comprehensive
income - - - 550 907 1,457
Share based payments - - - - 2 2
Deferred tax
on employee share
options - - - - 1 1
--------- --------- ------------ --------- ----------- --------------
Total of transactions
with shareholders - - - - 3 3
At 1 April 2017 1,990 1,269 109 (72) 582 3,878
Loss for the
period - - - - (1,099) (1,099)
Other comprehensive
income for the
period net of
tax - - - 11 236 247
Total comprehensive
income/ (expense) - - - 11 (863) (852)
Share based payments - - - - 39 39
Total of transactions
with shareholders - - - - 39 39
At 30 September
2017 1,990 1,269 109 (61) (242) 3,065
========= ========= ============ ========= =========== ==============
Independent review report to Chamberlin plc
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report of Chamberlin Plc for the six months ended 30 September 2017 which comprises of 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 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. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in an independent 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.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards 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 International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express a conclusion on the condensed set of financial statements 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 condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Birmingham
27 November 2017
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 2017 were approved by the board of directors on 22 May 2017 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 as adopted by the European Union and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 March 2017.
No new standards or interpretations issued since 31 March 2017 have had a material impact on the accounting of the Group.
Hedge activities
At 30 September 2017 the Group held 18 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 Unaudited
six Unaudited Unaudited six
months six months Year six months months Year
ended ended ended ended ended ended
30 Sep 30 Sep 31 March 30 Sep 30 Sep 31 March
2017 2016 2017 2017 2016 2017
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Foundries 12,443 9,542 21,333 (166) 293 1,188
Engineering 5,463 5,119 10,786 328 310 816
------------------ ------------ ----------- ------------ ---------- -----------
Continuing
operations 17,906 14,661 32,119 162 603 2,004
Discontinued
operations - 1,785 2,810 - 62 296
------------------ ------------ ----------- ------------ ---------- -----------
Segmental
results 17,906 16,446 34,929 162 665 2,300
------------------ ------------ ----------- ------------ ---------- -----------
Reconciliation of reported segmental operating
profit to (loss)/ profit before tax
Unaudited
Unaudited six
six months months Year
ended ended ended
30 Sep 30 Sep 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Segmental
operating
profit 162 665 2,300
Shared costs (594) (562) (1,261)
Exceptional
and non-underlying
costs (172) (252) (365)
Net finance
costs (206) (159) (324)
Loss from
discontinued
operations - (62) (296)
(Loss)/ profit
before tax (810) (370) 54
============ ========== ===========
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 Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Interest on bank overdraft (142) (79) (164)
Net interest on net defined
benefit pension liability (64) (80) (160)
(206) (159) (324)
============== ============== ===========
4 Income tax expense
An effective rate of tax for the six months to 30 September 2017 of 36% (30 September 2016: 1%) has been used in these interim statements.
The effective rate of tax is higher than the standard rate because of writing off tax losses and deferred tax assets brought forward at Russell Ductile Castings Limited leading to an increased tax charge. The 2016 effective rate of tax is lower than the standard rate because of utilising losses brought forward to reduce the overall tax charge in the period.
The corporation tax rate fell from 20% for the year ended 31 March 2016 and 31 March 2017 to 19% from 1 April 2017. The rate will fall to 17% from 1 April 2020. It is not anticipated that the subsequent reduction to 17% will have a material effect on the Company's future current or deferred tax charges.
5 (Loss)/ earnings per share
The calculation of (loss)/ earnings per share is based on the profit attributable to shareholders and the weighted average number of ordinary shares in issue. In calculating the diluted (loss)/ earnings per share, adjustment has been made for the dilutive effect of outstanding share options. Underlying (loss)/ earnings 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 Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2017
2017 2016
GBP000 GBP000 GBP000
Continuing operations
loss for basic earnings
per share (1,099) (387) (46)
Exceptional costs 21 138 138
Net financing cost and
service cost on pension
obligation 176 168 359
Share based payments
charge 39 26 28
Deferred tax asset write 374 - -
off
Taxation effect of the
above (45) (66) (105)
-------------- -------------- -------------
(Loss)/ earnings for
underlying earnings per
share (534) (121) 374
-------------- -------------- -------------
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2017
2017 2016
GBP000 GBP000 GBP000
Discontinued operations
loss for basic earnings
per share - (4) (927)
Exceptional costs - 64 1,451
Taxation effect of the
above - (13) (305)
-------------- -------------- -------------
Earnings for underlying
earnings per share - 47 219
-------------- -------------- -------------
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2017
2017 2016
000 000 000
Weighted average number
of ordinary shares 7,958 7,958 7,958
Adjustment to reflect
dilutive shares under
option 350 52 350
-------------- -------------- -------------
Diluted weighted average
number of ordinary shares 8,308 8,010 8,308
-------------- -------------- -------------
As at 30 September 2016 and 30 September 2017 there is no adjustment to the 52,353 and 350,000 shares respectively under option for the loss per share calculation as they are required to be excluded from the weighted average number of shares as they are anti-dilutive for the period then ended. As at 31 March 2017 there is no adjustment in the total diluted loss per share calculation for the 350,000 shares under option 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 30 September 31 March
2017 2016 2017
Salary increases n/a n/a n/a
Pension increases (post
1997) 3.1% 2.9% 3.3%
Discount rate 2.6% 2.2% 2.5%
Inflation assumption
- RPI 3.2% 3.0% 3.3%
Inflation assumption
- CPI 2.2% 2.2% 2.3%
The demographic assumptions used for 30 September 2017, were the same as used in 31 March 2017, 30 September 2016 and the last full actuarial valuation performed as at 1 April 2016. The triennial valuation as at 1 April 2016 was concluded during the period and maintained the current level of monthly cash payments paid into the scheme. The contributions expected to be paid during the year to 31 March 2018 are GBP263,000. The triennial valuation as at 1 April 2016 increased the deficit reduction period from 2028 to 2038.
The defined benefit scheme funding has changed under IAS 19 as follows:
Unaudited Unaudited
six months six months Year to
Funding status to to 31 March
30 September 30 September 2017
2017 2016 GBP000
GBP000 GBP000
Scheme assets at end
of period 13,421 13,220 13,548
Benefit obligations at
end of period (18,272) (20,402) (18,757)
------------------------ -------------------------- -----------
Deficit in scheme (4,850) (7,182) (5,209)
Related deferred tax
asset 825 1,293 886
------------------------ -------------------------- -----------
Net pension liability (4,025) (5,889) (4,323)
======================== ========================== ===========
The decrease in the net pension liability since March 2017 is mainly due to a decrease in the value of liabilities as a consequence of an increase in bond yields increasing the discount rate.
7 Exceptional costs and non-underlying items
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2017
2017 2016
GBP000 GBP000 GBP000
Group reorganisation 21 138 138
Exceptional costs 21 138 138
============== ============== =============
Share based payment charge 39 26 28
Defined benefit pension
scheme administration
costs 112 88 199
Non-underlying other
operating expenses 172 252 365
-------------- -------------- -------------
Non-underlying exceptional
costs of discontinued
operations - 64 1,451
----- ----- ------
Taxation
Write off of deferred 374 - -
tax assets
- tax effect of non-underlying
other operating expenses (33) (63) (363)
341 (63) (363)
===== ===== ======
During the year ended March 2017, the Group continued to rationalise operations given the reduced levels of turnover seen in the Leicester and Scunthorpe foundries. Group reorganisation costs, including redundancy and recruitment, relate to this rationalisation.
During 2017 the Group took the decision to close the Leicester foundry. Non-underlying exceptional costs of discontinued operations, including asset impairment, redundancy and site clean-up costs, relate to this closure.
Further reorganisation and redundancy costs were incurred during the current period.
8 Net debt
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2017
2017 2016
GBP000 GBP000 GBP000
Financial liabilities
Bank overdraft 414 209 216
Current instalments due
on finance leases 586 33 359
Current instalments due
on asset finance loans 100 200 200
Import loan facility 356 - 1,235
Invoice finance liability 4,790 4,042 3,510
-------------- -------------- -------------
Financial liabilities
due in less than one
year 6,246 4,484 5,520
-------------- -------------- -------------
Instalments due on finance
leases in greater than
one year 1,972 723 1,308
Instalments due on asset - 100 -
finance loans in greater
than one year
-------------- -------------- -------------
Total financial liabilities 1,972 823 1,308
-------------- -------------- -------------
Net debt 8,218 5,307 6,828
============== ============== =============
Available facility 9,090 6,960 9,601
Maximum available headroom 872 1,653 2,773
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UBVKRBKAAUAA
(END) Dow Jones Newswires
November 28, 2017 02:01 ET (07:01 GMT)
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