Chamberlin Share Discussion Threads

[jellypbean] 02/5/2023 23:10

Good that the trustee-calciulated pension deficit is getting payed down.

[rivaldo] 02/5/2023 15:55

Great to see the Walsall property sold for £2.2m - well above the £1.6m value in the accounts.

The pension fund will be reduced to a relatively insignificant £1.2m and should no longer therefore be an issue.

[rivaldo] 27/4/2023 09:35

Two interesting posts on LinkedIn recently:



Firstly from the Group CEO:

"Kevin Price • Group Chief Executive Officer at Chamberlin Plc

Petrel, our Hazardous area lighting division, is looking to expand its sales force as we continue to drive our growth strategy and build on the excellent progress made over the last 12 months.
We have recently added our first European Sales Engineer to the
business. We can now really push forward with our plans to expand our export offering.
The team at Petrel are also recruiting for a UK Sales Engineer (North England/Scotland). If you have experience in ATEX/Hazardous Area equipment sales please contact Mark Pemberton - [e-mail]"

Secondly from RDC's CEO:

"Ok, so I’m 3 months into my role here at RDC, I have seen weaknesses, these we will fix, I have seen strengths, these we will expand on, I am seeing opportunities, these we will seize,but I have witnessed a skill set second to none here.
’we take complex and make it to precision’
Our customers expect and demand excellence, well RDC deliver this and we back it up with high quality customer service.
We have carried out more foundry visits and meetings in the last three months that in the last three years as we begin to build partnerships and trust.
This is just the beginning!!"

[rivaldo] 25/4/2023 15:53

Good to see another rise - and a buy at the full 4p offer just now.

[rivaldo] 24/4/2023 14:41

Good to see a nice bounce today.

Interesting post from the MD at RDC from a week ago:



"Steve Shore 3rd+ Managing Director - Russell Ductile Castings, part of the Chamberlin Group PLC
1w •

So, the five year plan is in place for RDC, We have a strong foundation and the making of a really high quality team and individuals, I see major growth in terms of customer base and supplier partnerships, expanding shift patterns to enable RDC to produce what our customers and markets require.

We are adding to the team, the common denominator being quality positive individuals that enhance what we already have, we have technical expertise throughout RDC, hence why we are moving quickly."

[jellypbean] 08/3/2023 21:25

Does anyone have any insight as to how the DB pension fund could have gone well back in the red over the 6 months during which real rates increased 1.4% and global equity markets were broadly flat. This is an anomaly, surely?

[rivaldo] 28/2/2023 12:06

Cheers Garth.

Cenkos say Buy and forecast a P/E of 6.9 for next year. They conclude as follows:

"Current trading and outlook. Chamberlin has successfully managed the current
inflationary pressures through price ups and additional cost savings, and is now well positioned to benefit from industry tailwinds (eg the easing in supply of
semiconductor chips in the automotive sector). The Group’s use of technology
continues to increase, increasing efficiency, whilst investing in plant and machinery to increase capacity. Greater investment provides the opportunity to widen the Group’s market presence as management look to introduce new products and
services (eg warranty, inspection, and maintenance)."

"Investment case.

Chamberlin continues to make solid progress and is in a position of strength with recent strategic decisions continuing to come into fruition. The Group continues on its path to recovery with each of the businesses now operating profitably, a position the Group has not found itself in for an extended period of time. Chamberlin continues to take proactive steps to increase capacity and enter new markets.

The Group trades on a FY24E Adj P/E of 6.9x, which we believe offers attractive value, despite the economic headwinds. We reaffirm our Buy rating."

[garth] 28/2/2023 07:48

Very positive outlook statement. Good to read.


The Board believes that Chamberlin is now entering a period of continuous growth with all businesses profitable in January 2023 for the first time in many years and supporting the Board's expectations that Group profits in FY 2023 will be second half weighted.

Underscores the comments you posted recently, Rivaldo.

G.

[rivaldo] 28/2/2023 07:19

Agreed - the CEO's outlook statement says it all:

"The Group continues to go from strength to strength and is performing in line with market expectations.

The Board believes that Chamberlin is now entering a period of continuous growth with all businesses profitable in January 2023 for the first time in many years and supporting the Board's expectations that Group profits in FY 2023 will be second half weighted"

And:

"All operating businesses within the Group are now operationally profitable, with new opportunities for growth continuing to emerge, the most significant being the newly reinvigorated Petrel"

The H2 headline numbers should therefore better reflect the turnaround, particularly given price rises and cost savings enacted during H1.

Debt is up, but it's great to see confirmation that CMH's property is under offer for £2.2m.

[this_is_me] 28/2/2023 07:12

Very encouraging update for my very small holding bought last summer.

An excellent post Brexit trade with the French Saint Gobain shows My Retirement Fund what we can do.

[rivaldo] 21/2/2023 10:27

Great spot from Kwaker elsewhere - CMH's head office/foundry site in Walsall is now under offer for sale, and subsequent leaseback by CMH, at £2.4m.

This is in line with CMH's sale and leaseback policy already achieved for other property, and would enable a substantial reduction in borrowings etc:

[rivaldo] 20/2/2023 11:24

Cheers Garth.

Just 3 days ago the MD of RDC made this rather interesting post on LinkedIn, not just as regards them being "flat out", but also bringing in a new order from the indutrial behemoth Saint Gobain - there's a short video too:



"Steve Shore • 3rd+ Managing Director - Russell Ductile Castings, part of the Chamberlin Group PLC
3d •

3 days ago

The foundry at RDC is flat out with orders, this is complex production made with precision,such a very high skill set from the team, what you see is part of a Saint Gobain new order. #qualityproducts #engineeringdesign #bespokesolutions #qualityteam"

[garth] 17/2/2023 21:11

Rivaldo,

Good week - but I think it was you who called it,

"With all the director buying at successively lower prices I'm betting these are the lows before the figures start to reflect the turnaround and further contracts are won.

There are still a few shares available at 3.5p and just above, but less than before as presumably flippers from the recent small 3.3p placing disappear."

Best wishes,

G.

[rivaldo] 17/2/2023 10:54

Nice timing garth :o))

Good to see another 165,000 shares bought just now and another tick up, with buying prices rising to the full 4p offer.

[garth] 15/2/2023 10:27

I may have nibbled at a few over the course of the last week ;0)

G.

[rivaldo] 15/2/2023 09:11

Cheers Garth, appreciated. The overhang appears to have cleared now - the maximum shares available to buy online now is only 100,000 shares at 3.79p.

[garth] 14/2/2023 08:47

Good summary Rivaldo.

Thanks for sharing.

G.

[rivaldo] 13/2/2023 11:33

I've been buying in to this £3.9m m/cap tiddler recently at around/just above the 3.5p bid price.

It seems to me that the revamped management team are doing the right things and finally getting this company back on track.

There's a long and thorough new Buy note out from Cenkos with a 5.3p price target.

A huge plus point for me is that CMH fixed their energy costs for 5 years back in March'20. This gives them a big advantage over the few sector competitors.

Additional points to note in brief:

- the UK onshoring trend has begun in earnest and will benefit CMH
- RDC heavy castings are achieving record revenues at £1m per month
- the new cookware and fitness brands could make a material difference
- CHC light castings has expanded capacity and will soon return to profit
- CHC has diversified into construction, power generation and radiator markets
- Petrel industrial lighting also looks in good health
- CMH are already benefiting from investments to supply the renewables market
- as global chip shortages ease then car manufacturing should steadily improve

There is of ocurse net debt, but this is now forecast to have stabilised.

With all the director buying at successively lower prices I'm betting these are the lows before the figures start to reflect the turnaround and further contracts are won.

There are still a few shares available at 3.5p and just above, but less than before as presumably flippers from the recent small 3.3p placing disappear.

[garth] 19/12/2022 08:20

Freddy,

Long time... I trust you are well. Should I take you are holding these?

Best wishes,

G.

[ydderf] 16/12/2022 14:02

Update just released

[garth] 08/11/2022 07:43

Thanks Cottoner. Good to hear. I had missed or forgotten that. As I age I cease to know which it is.

Best wishes,

G.

[cottoner] 08/11/2022 07:31

This helps:

From July 8th 2022 RNS:

This recovery is further supported by the Group's protection from any current or medium term energy price increases, having secured a 5 year fixed price contract for electricity in March 2020, placing the Group in an increasingly competitive position to win new orders.

[garth] 07/11/2022 08:32

Somewhat surprised to see no mention of energy costs in an energy intensive business. Or have I missed a paragraph?

Or is it because they are coal powered foundries? And is the price of coal is stable?

Apologies if those are stupid questions!

G.