Chamberlin Share Discussion Threads

[red army] 09/1/2024 08:17

Mind you it looks like Brown started buying shares when price was 7p so he has a long way to go.

[this_is_me] 09/1/2024 08:17

As expected share price trashed. 22.7% more shares 'given away' at 2p means that the board think that shares are only worth 2p and large chunks are being sold at this price.

If I had the means to do so I would fire the entire board. Apart from anything else they have shown that they lack negotiating skills.

[red army] 09/1/2024 08:13

I agree 2.5p would have been more palatable and practical.

[this_is_me] 09/1/2024 07:47

Private investors screwed again. 22.7% extra shares at give away prices of about a third less than we would have had to pay in the market, going to a director and others.

[rivaldo] 09/1/2024 07:25

Great to see the trading news in today's RNS, which indicates a PAT of £0.8m-£1m for this year to Nov'24, and revenues up by 15%-20%.

Which makes the price of the new £0.83m placing particularly hard to swallow. With Trevor Brown investing a further £70k and First Equity a further £220k, taking their holdings to over 41% of the company between them, there's obviously distinct optimism about the direction of the company. And makes this placing simply "shares for the boys/insiders".

It's always best to have spare cash in hand, and with all the contract wins and working capital requirements I don't blame CMH for topping up their reserves. But surely a 2.5p-2.7p price should have been achievable.

That's the markets for you.

[z1co] 03/1/2024 20:09

The fact that current order books for the three trading divisions are strong bodes well for H2 and are most likely to increase even further throughout 2024.

More importantly for the shareholders the strong trading environment will start to drive the share price substantially higher than the current price of 2.9p.

[rivaldo] 03/1/2024 15:02

Happy with that from the RNS just out:

"Kevin Price, Chief Executive Officer of Chamberlin, commented: "I am pleased to report that operational performance in the first half of the financial year has been broadly in line with the Board's expectations. The current order books across all three trading divisions are strong and will support performance in the second half of the financial year. Therefore, the Board believes the Group remains on track to meet market expectations for the year ending 31 May 2024."

So whilst H1 to 30/11 might be ever so slightly lagging, most importantly all divisions are trading well with "strong" order books, and CMH expect to meet expectations. No doubt boosted by RDC as previously reported.

Current expectations from Cavendish are for £24.0m revenues, £1.3m adjusted EBITDA and 0.6p EPS.

[z1co] 02/1/2024 18:54

here and there

Notice of Annual General Meeting will shortly be available for download from the Company's website at

[here and there] 02/1/2024 15:58

where ws the AGM date published, can't find it anywhere

ty

[z1co] 02/1/2024 13:34

HNY to you as well rivaldo

The last AGM was on 30/11/2022 and they gave a trading update , lets hope the company issues a trading update tomorrow and an outlook for H2 and 2024 will be a bonus.

[z1co] 02/1/2024 12:03

That 50k buy ahead of the AGM tomorrow has also moved the share price UP slightly.

[rivaldo] 28/12/2023 22:26

Good to see an 88k buy this afternoon and a subsequent tick up.

[z1co] 15/12/2023 23:40

Also in the Daily Mail's market report:

[rivaldo] 15/12/2023 12:21

Good to see coverage of today's news here:

[z1co] 15/12/2023 08:58

An excellent update from the company.

"supporting the anticipated increase in revenue growth and profit after tax in FY24 ".

[rivaldo] 15/12/2023 08:30

Indeed - as well as Volvo, Nissan and JCB, I hadn't realised Steel Dynamics are a $19.2 billion m/cap steel producing American behemoth!

And these are all new customers.

[here and there] 15/12/2023 08:06

Fabulous contract names. Those are serious names.

[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.