Chamberlin Share Discussion Threads

[rivaldo] 26/5/2023 07:24

A small £360k placing announced this morning at 3p - unsurprising price given the markets, but explains the recent drift. And TB has yet again participated with another £30k, along with "existing institutional and other investors".

Interesting to hear that a competitor of RDC's has gone into administration, and that this has given rise to "potential new opportunities". Might this include taking on the assets of the competitor, or at the least winning its customers? I'm willing to bet that the competitor was partly screwed by energy prices - unlike CMH.

Plus there's good news on trading:

"For the year ended 31 May 2023 ("FY 2023"), the Group expects to report revenue of approximately GBP20.5 million, slightly ahead of market expectations and profit after tax of GBP0.1 million, in line with market expectations."

And:

"The Group has continued to deliver on its turnaround strategy with all business units now profitable.....The Board expects the Group to be cash generative in FY 2024 through a combination of revenue growth, profitable operating performance and organic reduction in net debt"

[rivaldo] 09/5/2023 10:48

Cenkos have issued an update this morning after the property sale.

They forecast £0.8m EBITDA for the year ending in 3 weeks' time and £1.3m EBITDA for the coming year. And a small £0.1m LBT, implying a £0.2m PBT in the H2 just ending, followed by £0.3m PBT to May'24.

This translates to 0.2p adjusted EPS and then 0.6p EPS, and a P/E of 6.7.

[rivaldo] 05/5/2023 08:15

Good to see another tick up this morning already.

And that CMH does apear to be picking up a little traction online:

[goforgold1] 05/5/2023 00:13

Be carful Myles the Twitter Ramper dojng his thing . Dint get bagged by him

[rivaldo] 04/5/2023 13:36

Apart from Trevor Brown being a director of both companies, what's one got to do with the other - please enlighten me!

[johnjames876] 04/5/2023 12:46

Brh is up 97% Cmh about to fly

[rivaldo] 04/5/2023 12:42

A sudden surge - presumably a delayed reaction to Tuesday's news.

[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.