Chamberlin Share Discussion Threads

[manual dexterity] 15/12/2023 08:02

Interesting.

[rivaldo] 15/12/2023 07:31

Very encouraging update today covering the growth in RDC's renewables/offshore energy business, with a record £1.85m of new order intake in November alone:



Which further supports the broker forecasts of £1.3m EBITDA and 0.6p EPS for this year to 31/5/24.

Big name customers too - Volvo, Nissan and JCB in particular, as well as Tekmar and Steel Dynamics.

[rivaldo] 05/12/2023 12:43

New partnership for Petrel:



"The team at Petrel are very proud to announce a new partnership with I-Valo Oy. Our partners at I-Valo have a long-standing experience in lighting manufacturing, and are now stocking our 9 Series products to strengthen their presence in the ATEX lighting industry"

[rivaldo] 01/12/2023 10:23

Cavendish's new note today forecasts for this year to May'24:

(1) £24m revenues, up from £20.7m
(2) £1.3m positive EBITDA, up from negative £0.1m
(3) positive 0.6p EPS, up from -0.8p

They summarise:

"CHC turnaround.

Whilst RDC and Petrel continue to perform well, it is the turnaround at CHC which has been, and will be, central to improving overall group performance. In the 2023 financial year, CHC achieved a 48% reduction in losses that helped the Foundry division to reduce losses to £0.2m from £0.5m and – excluding a £0.2m bad debt charge – the Foundry division achieved break-even.

The strategic plan for the turnaround focuses on diversification away from the automotive sector and the addition of new business to utilise the spare capacity at both the casting and machining facility.

In November 2023, the group won a 10-year contract in the heavy plant sector which is expected to generate EUR7.1m over the life of the contract and should commence production in Q4 2024. In June 2023, the company won a contract worth EUR7.3m over 8 years for turbo charger bearing housing castings, with production expected to commence in July 2024. Production has already commenced on new casting orders valued at £1.2m across the construction, cast iron radiator and commercial vehicle markets and the machining facility has added c.£1.0m of additional revenue, which will result in improved utilisation.

Overall, the strong order book at CHC is expected to result in 2024 CHC revenue growth of between 15% and 20%. CHC is also developing a capability to produce ductile iron products, which is a larger market with buoyant demand and limited capacity."

[rivaldo] 30/11/2023 21:46

The prelims to 31st May released this afternoon show a welcome return to form and a very promising outlook for this company which now has a mere £2.9m m/cap.

The underlying operating loss for the year was reduced to a mere £0.4m before a one-off bad debt, but having made a £0.3m such loss in H1 this means H2 saw a loss of just £0.1m.

Further, every division is now operating well and improving fast. So much so that the Chairman is now able to say:

"The Board is anticipating a further increase in revenue of between 15% and 20% and profit after tax of between £0.8m and £1.0m in FY24".

Not bad for a £2.9m m/cap. And given that CMH are now on the last day of the next H1 reporting period, the bullish sentiments expressed should be reflected in a further improvement for this H1'24.

CMH aren't out of the woods yet reading to the end of the report, as working capital remains tight and there are still pension contributions to pay, though these look manageable as trading improves.

But the tone of the report and prospects going forward are undoubtedly positive:

"the improvements and building blocks that have been hard fought over the last two years have put the Group into the position where the strategic goal of returning to operational profitability is expected to be delivered in the 2024 financial year"

"I am pleased to report significant operational improvements across the Group for the year ended 31 May 2023. The Group is well positioned to continue its journey to a full recovery and expects to return to a more sustainable level of profitability"

"Whilst having delivered incrementally modest improvements to operating performance in the last two years, the Board firmly believes that all of the Group's businesses will make further progress in 2024 and that Chamberlin will deliver the step change in performance we have been working towards"

[jellypbean] 16/11/2023 16:14

Pension funds get a full revaluation every 3 years. We've not seen the 31 March '22 one yet AFAIK. Running totals based on the '19 one could change following a full valuation.

[rivaldo] 16/11/2023 14:11

Per the RNS on 2nd May the pension fund deficit was reduced to a mere £1.2m following the sale of the Walsall property. It's therefore relatively unimportant going forward relative to the apparently extremely healthy state of the business.

[jellypbean] 15/11/2023 22:54

We need the annual report to have a clear idea of the baseline upon which this (hopefully) good chatter is building upon.

Pension fund was supposedly having its triennial review to ?May '22, for example. Pension fund is 3X the market cap, so it's an important consideration.

[rivaldo] 14/11/2023 12:14

Encouraging commentary from Castings PLC in their interims today, which report a "high level of demand, both current and forecast".

Interesting that "As a result, in collaboration with our customers, we have outsourced some production to other foundries for the short-term".

It also looks like CMH are working with Castrads, a UK-based manufacturer of elegant, high end radiators:



"This journey has been made possible by Simon Evans, Professor John Campbell, Robert Heyworth, David Ball and all at Chamberlin & Hill Castings Ltd"



"Castrads is a family business, founded in 2006. We started out as a small team, assembling and painting radiators on a farm in rural Cheshire. Today we employ about 65 people in four countries.

Our manufacturing base and headquarters remains in Greater Manchester. We also have showrooms in London and New York, and an assembly and finishing plant in Poland that serves our EU customers."

[rivaldo] 19/10/2023 10:21

First Equity's last disclosure was in February with 9.195m shares and 7.3%, so they've added just over 4.8m shares since then to get to over 10%.

[rivaldo] 18/10/2023 15:49

Armstrong Investments/William Black/First Equity have been buying again - now above 10% (at 10.16%) with exactly 14m shares:

[rivaldo] 12/9/2023 15:07

All quiet at present prior to publication of the 31st May accounts, although of course we already know the numbers.

Interesting post from RDC's MD from June which hasn't been noted before - extracts include "Our order book is healthy" and "I am extremely confident about our new financial year (June being our first month):

[rivaldo] 01/8/2023 12:17

Cenkos haven't issued an updated research note since the €7.3m contract win.

Catching up with their most recent note (not posted here before) from 5th June, it's good to see they forecast £0.2m EBITDA and a £0.1m PAT for the year ended last May.

This is forecast to rise for the current year, "with all business units now profitable", to £1.3m EBITDA, £0.8m PAT, only £1.3m net debt and 0.5p EPS.

That will be a current year P/E of 6.

[rivaldo] 31/7/2023 10:55

Good to see the CEO being issued options exerciseable at 2.95p rather than the oft-used nil cost.

Hopefully this indicates CMH's belief that the share price is at or around lows from which it's a good time to issue incentives with upside a-coming:

[rivaldo] 27/7/2023 10:13

Agreed here and there.

More director buying - Trevor Brown has added another 85,000 shares at 2.99p. He now owns 35.42m shares, or 25.7% of CMH.....

[here and there] 03/7/2023 10:49

I've been long and wrong here for 2 years, think I will be long and right over the next two years.

[rivaldo] 03/7/2023 10:38

Lovely new coverage of CMH on the excellent AIM Prospector web site - the article is free to view after registration:



Conclusion:

"On 22nd June we got the announcement that appeared to confirm that the fightback
was on. A major contract win to supply turbo parts for a car manufacturer was announced at Chamberlin and Hill, worth a total of €7.3m over a period of eight years.

Like all manufacturers, Chamberlin benefits from economies of scale. As the
business runs closer to capacity, the profit delivered from each extra pound of sales increases. It is being reported that Chamberlin's broker is forecasting EPS of 0.6p for the year ending May 2024. A small loss before tax is forecast for the
year to May 2023.

Chamberlin's challenge hasn't changed. To turn a profit from its cyclical operations by executing properly and winning new business. Its products are highly relevant and some of Chamberlin's capabilities are difficult for competitors to replicate. Successful turnaround could lead to a price of 10p+."

[rivaldo] 26/6/2023 10:06

"Chamberlin wins major automotive OEM contract

A subsidiary of Chamberlin, a specialist castings and engineering group, has secured a major new contract worth approximately €7.3m of revenue over an eight-year term.

Under the contract, Chamberlin & Hill Castings (CHC) will supply complex turbo charger bearing housing castings to the European automotive OEM that will be utilised in its passenger car engines.

Secured after a rigorous competitive tender process, tooling production begins in July 2023 and supply of the pre-series sample production parts will take place throughout the current financial year. Serial production commences in July 2024 and is expected to contribute annual revenues of approximately €1.1m.

Kevin Price, chief executive of Chamberlin, said: "I am delighted to announce this major contract win for our Walsall foundry.

"This business win represents a significant step forward in re-building revenues at Chamberlin and Hill Castings and securing the long-term future order book. This contract strengthens our position as Europe's leading supplier of grey iron castings to the Automotive turbo charger market."

[rivaldo] 22/6/2023 16:52

Johnjames876's posting history is fairly unique shall we say :o))

[johnjames876] 22/6/2023 16:21

Trevor brown special here avoid

[rivaldo] 22/6/2023 14:52

Terrific contract win just announced - €7.3m over the next eight year is a nice proportion of future revenues won in one fell swoop. Especially for a £3.9m m/cap company!

The forecast for this year is already for 0.6p EPS and a P/E of 5.6 - this may lead to upgrades, though I suspect Cenkos will err on the side of caution for the moment.

There's some stock available to buy online at present, probably from the £300k placing, but hopefully this may not last long given this news:



"Major Contract Win

Chamberlin (AIM: CMH.L), the specialist castings and engineering group, announces that its castings subsidiary, Chamberlin & Hill Castings Ltd ("CHC"), has secured a major new contract worth approximately EUR7.3 million of revenue over an eight-year term with a leading European automotive industry components supplier. Under the contract, CHC will supply complex turbo charger bearing housing castings to the European automotive OEM that will be utilised in its passenger car engines.

Secured after a rigorous competitive tender process, tooling production begins in July 2023 and supply of the pre-series sample production parts will take place throughout the current financial year. Serial production commences in July 2024 and is expected to contribute annual revenues of approximately EUR1.1 million.

Kevin Price, Chief Executive of Chamberlin, commented,

"I am delighted to announce this major contract win for our Walsall foundry. This business win represents a significant step forward in re-building revenues at Chamberlin and Hill Castings and securing the long-term future order book. This contract strengthens our position as Europe's leading supplier of grey iron castings to the Automotive turbo charger market."

[charo] 21/6/2023 21:16

Markets are volatile,commercial vehicles and construction equipment.
Not saying bad but never constant.

[rivaldo] 08/6/2023 07:34

Today's RNS shows that Chelverton's holding has remained constant at 9m shares - their percentage holding is now 6.53% due to dilution from the placing.

Cheers Jaknife - hopefully CMH will steal decent business from the business which went under.

[pugugly] 26/5/2023 10:00

Even after the reduction in pension fund liability still a business in hock to pension fund liabilities and family silver no longer available as a cushion and replaced by lease liabilities.