Chamberlin PLC Trading update (6530P)

TIDMCMH

RNS Number : 6530P

Chamberlin PLC

21 November 2016

AIM: CMH

CHAMBERLIN plc

("Chamberlin" or "the Company" or "the Group")

Trading Update

Chamberlin, the specialist castings and engineering Group, announces an update on trading for the financial year to 31 March 2017.

Trading in the first half of the financial year has been in line with management expectations and the Company's investment in a new machining facility in Walsall is progressing well and is expected to generate incremental sales from January 2017.

Demand at the Company's foundry in Leicester, which produces mid-size castings, continues to be subdued and while the cost base has been reduced to ensure a lower breakeven point, as previously reported, the management has taken the difficult decision to cease production. Accordingly, an orderly wind-down is now commencing and should conclude by the end of 2016. The closure of the foundry is not expected to impact existing market forecasts for underlying profit before tax for the current financial year. As in prior years, Chamberlin's performance is expected to be weighted towards the second half.

In the financial year to 31 March 2016, the Leicester foundry contributed sales of GBP5.9m and an underlying profit before tax of GBP420,000. In the first half of the current financial year, Leicester contributed sales of approximately GBP1.8m and an underlying profit before tax of approximately GBP46,000.

Management continues to view prospects for improved performance positively, helped by the increase in opportunities available as a result of the new machining capability as well as growth at Exidor, which produces architectural ironmongery, and Petrel, which designs and supplies specialist lighting. In addition, as net exporters of UK manufactured products, all Chamberlin's operations should benefit from the current weak sterling, with the financial impact more evident in the next financial year as the Company's pre-Brexit currency hedges unwind.

The Company expects to publish interim results on 29 November 2016.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Enquiries

 
 Chamberlin plc (www.chamberlin.co.uk)     T: 01922 707100 
  Kevin Nolan, Chief Executive 
  David Roberts, Finance Director 
 
 Panmure Gordon                            T: 0207 886 
  (Nominated Adviser and Broker)            2500 
  Adam James / Peter Steel 
 
 KTZ Communications                        T: 020 3178 
  (Financial PR)                            6378 
  Katie Tzouliadis/ Viktoria Langley/ 
  Emma Pearson 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 21, 2016 02:00 ET (07:00 GMT)