Chamberlin Share Discussion Threads

[sunshine today] 17/4/2024 09:38

Investing in shares comes with risk.

I dislike risk

I love buying potential 10 baggers.

£20M market cap requires growth and and profits

£800,000 of interest payments are disappearing.

The pension issue is all but sorted.

1/2 the company is working flat out.

Costs have been slashed.

All for £2M market cap that requires just £150,000 after tax profits to match the sectors average PE Ratio.

[kneecaps2] 17/4/2024 09:24

There is only 1 great company that produces large castings and they are GOODWIN!

[arthur_lame_stocks] 17/4/2024 09:23

Bit like Debenhams then?

[arthur_lame_stocks] 17/4/2024 09:11

Basically the shares are worthless and this is going bust soon.

[arthur_lame_stocks] 17/4/2024 08:57

So the cookware and stuff is doing badly and their response is to put prices up at a time of a cost of living crisis. It's really a desperation measure.

[sunshine today] 17/4/2024 08:47

Following a full strategic review, a program of cost reduction actions have been implemented across the Group including labour reductions, short time working (as required) and senior management restructuring. Alongside this, the Company has conducted a full review of product margins and implemented price increases accordingly to underpin the required profitability and cash generation. The Group is expected to benefit from these actions within 3 months and create a more robust level of profitability going forward.”


/////////////////////////////////////////////////////////////////////////////////


Within 3 months is a very, very, rapid timeframe.

This is excellent news for shareholders, if one can buy into a business for C: £2M and within 3 months your investing company is back to robust profitability, its game on for a bright future.


£250,000 is due to the company by the month end from the sale of the discontinued business .

The new financial year starts on June 1st . Profit should be restored by 10th July at the latest , based on the above , however their is a chance the company delivers profit from the very first day of June after 7 weeks, not the full 13. kitchen sink job at year end comes to mind.

[kneecaps2] 17/4/2024 08:26

and the sellers keep selling because chamberpots record over the last 5 years or so is diabolical.

[sunshine today] 17/4/2024 07:28

From the interim results.


“The net interest cost of £0.4m (2023: £0.2m) largely reflects the full impact of successive increases in the Bank of England base rate.”



———;——̵2;——R12;——212;———————————;——̵2;——R12;——212;———————————;——̵2;——R12;——212;———————————;——̵2;——R12;——212;——————

That debt is now largely repaid and will have gone completely within 12 months. ( was costing £800,000 a year ).

The pension deficit is all but sorted

One of the two remaining parts of the group is going great guns

Sales prices of goods going out the door have been increased

Cost cutting has been actioned

The underperforming section of the company is looking forward to an uptick in production within the next 6 months.


All for a fraction over £2M market cap, hence the buyer, keeps buying.

[rivaldo] 16/4/2024 15:08

RNS - First Equity/Armstrong Investments are certainly determined to snap shares up asap.

They now own 19.51%, or 35m shares (they've bought 21m shares in the last 6 months from around 3p downwards):

[sunshine today] 16/4/2024 11:42

Those that purchased at £1.66P : 7 years ago clearly made an incorrect call at the time.

Those that came aboard in the recent placing must also be a a tad upset.

At today’s opening price of 1.12p mid i estimate 99% plus of shareholders will be underwater.

This is just the type of situation that attracts myself to a company, one needs to know absolutely nothing about CMH, other than todays Market cap of £2M, the actions the company has, - is, taking to produce profits, combined with determined buying of the stock.

[rivaldo] 10/4/2024 08:29

A poor Q3 update. Now we know why the FD and KBW packed their bags....and why Petrel was disposed of for £3m, which should have left CMH in a manageable position going forward to manage working capital etc. The savings from director exits and other measures mentioned today will also help.

Trading "started to improve during Q4 FY24 and customer schedules are recovering to a more normalised and stable level, with a strong uptick in demand forecast within the next 6-month period as new programs start to ramp up production".

It's interesting to see the repeated use of the word "profitability" in today's RNS. Let's hope this is realistic and not pie in the sky.

[rivaldo] 04/4/2024 11:17

First Equity/William Black continue to buy - they now have just over 17%, or 30,500,000 shares (they've added 500,000 since their last disclosure):

[rivaldo] 15/3/2024 10:17

Good to see just |£5k of buys causing a decent move up.

CMH are undervalued imo, but time will tell one way or the other.

[rivaldo] 29/2/2024 07:23

Intriguing stuff - Free Association Books Ltd (FAB) have turned up with a 3.68% holding in CMH, or 6.6m shares:



This was bought as part of the 2p placing on 9th January judging by the date of purchase.

Most interestingly:



FAB appear to be an investment vehicle for the Brown family. Trevor Brown used to be a director but isn't any more - whilst Edward and 3 other Brwons are still directors.

So in essence Trevor and his family have now bought into CMH to an even greater extent.

He's evidently pretty convinced that there's rather good value to be had here.

[jellypbean] 22/2/2024 13:34

Rivaldo,

I suspect it may be lease liabilities, that account for the difference. As of May '23 CMH had 2.7M lease liabities, of which the Petrel facility would likely have been a fair chunk. The RNS says CMH will now be subletting to Petrel, so presumably this allows them to remove this liability from the books?

The RNS explicitly states where the 3M is going, I think it's wishful thinking to assume there there has been more cash paid than is stated.

[this_is_me] 22/2/2024 13:15

I was confused by the mkt. cap too since ADVFN haven't updated the information on the financials page.

[red army] 22/2/2024 12:51

"From a £2.75m m/cap there's a lot of room for upside from a company which has been around for over a hundred years."

You could say the same about Marconi or Woolworths etc

[rivaldo] 22/2/2024 12:47

The RNS specifically states that of the £3m, £1.1m is being used for working capital and CMH's growth strategy. Simple maths would therefore suggest that it's impossible to reduce liabilities out of the remainder by £2.6m. The implication is therefore that the acquirors have taken on £2.6m of Petrel-related liabilities. Happy to be corrected though.

Your m/cap is correct, cheers - I'd used the prior pre-placing shares in issue.

[jellypbean] 22/2/2024 11:22

Oh, and market cap is 3.6, not 2.8.

[jellypbean] 22/2/2024 10:49

Rivaldo. By my reading. It has not been sold for 3M plus 2.6M liabilities.

It has been sold for 3M, and this money has been used to pay down the liabities.

AFAICS The buyers have gotten 4.5M book value assets for 3M.

CMH has got well-needed cash.

I would be very happy to be corrected in this (with a clear evidence).

[rivaldo] 22/2/2024 10:43

Absolutely Tim, fair comment.

My perspective is that Petrel's been sold for a good sum, i.e £3m plus £2.6m of liabilites. In doing so CMH have effectively resolved the pension deficit, reduced expensive borrowings and provided working capital for the core business which is on the rise.

With competitors going out of business, onshoring gaining momentum, petrol/diesel engines looking like they're going to be around for a long time to come etc, CMH fulfil a need for local supply which is only growing and in a shrinking market of suppliers who are soundly funded.

From a £2.75m m/cap there's a lot of room for upside from a company which has been around for over a hundred years.