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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Chamberlin Plc | LSE:CMH | London | Ordinary Share | GB0001870228 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.025 | -2.00% | 1.225 | 1.15 | 1.30 | 1.25 | 1.225 | 1.25 | 95,893 | 15:54:28 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Engineering Services | 20.72M | -125k | -0.0007 | -17.43 | 2.19M |
From Apr 2019 to Apr 2024
TIDMCMH
RNS Number : 6754V
Chamberlin PLC
16 April 2021
16 April 2021
AIM: CMH
CHAMBERLIN PLC
("Chamberlin" or "the Company" or "the Group")
Interim Results
for the six months to 30 September 2020
Key Points
-- H1 results from operations significantly improved compared to prior year despite headwinds due to COVID-19 and Brexit uncertainty.
-- Revenues of GBP11.0m (2019: GBP12.8m) largely reflect impact of COVID-19 disruption which caused the closure of the Walsall foundry and machine shop in April 2020.
-- In spite of the lower volumes, operating loss before non-underlying costs* reduced to GBP0.2m (2019: loss GBP1.0m). Operating loss after non-underlying costs of GBP0.5m (2019: GBP1.7m).
-- Loss before tax of GBP0.6m (2019: loss of GBP1.8m). -- Net debt at 30 September 2020 of GBP4.7m (31 March 2020: GBP4.6m).
Post Balance Sheet Events
-- The publication of the FY 2020 Accounts was delayed due, in part, to the impact of COVID 19 on the business and the audit process. In addition, the Company announced the loss of a major contract in December 2020 which has impacted on the Company's future prospects. This in turn led to the Company delaying publication of the FY 2021 Interim Results.
-- Trading in the Company's shares on AIM has been suspended since 4 January 2021.
-- The Company completed a GBP3.5m share placing and subscription on 26 March 2021 which has enabled the Company to proceed with finalising the FY 2020 Accounts and FY 2021 Interim Results. The Company is now well positioned to restructure and take advantage of future growth opportunities.
Chairman, Keith Butler-Wheelhouse, commented:
"Management are confident that sales at Chamberlin will stabilise in the first half of the 2021/22 financial year and will then grow from the post BorgWarner low, with the growth gathering pace in the second half. The Board expects growth from all business units and a return to profitability and cash generation post our restructuring."
*Underlying figures are stated before non-underlying costs (restructuring costs, hedge ineffectiveness, impairment, GMP equalization, onerous leases and share based payment costs) together with the associated tax impact.
Enquiries
Chamberlin plc T: 01922 707100 Kevin Nolan, Chief Executive Neil Davies, Finance Director Cenkos Securities plc T: 020 7397 8900 (Nominated Adviser and Broker) Russell Cook Katy Birkin Peterhouse Capital Limited T: 020 7469 0930 (Joint Broker) Heena Karani Duncan Vasey
Chairman's Statement
Chamberlin plc (AIM: CMH) announces its interim results for the six months ended 30 September 2020.
Revenues in the first six months reduced to GBP11.0m from GBP12.8m in the prior year, primarily reflecting the impact of COVID-19 induced shutdowns in April 2020 of our European automotive customer's sites. As a result of these closures, we were forced to shutdown our own operations at the Walsall foundry and machine shop in April. In the following five months, revenue for the Walsall foundry and machine shop recovered to around 96% of the comparable five-month period in the prior year.
Our Russell Ductile Castings foundry in Scunthorpe and Petrel, our hazardous area lighting business, both remained operational throughout the first half. Russell Ductile Castings have been able to capitalise on a reduction in foundry market capacity and the increasing demand for its products, with revenue 10% ahead of the previous half year. Petrel remained operational in the half-year, but was impacted by the impact of COVID-19 induced customer shutdowns and delays to the procurement of some large lighting projects. As a result, Petrel's revenue reduced by 34% to GBP1.1m (2019: GBP1.7m). However, the level of new orders has increased markedly and second half revenues are much improved.
Despite the overall reduction in revenue, the loss before taxation reduced to GBP0.6m in the first half from GBP1.8m in the prior year. Of this loss, GBP0.4m occurred during the enforced shutdown at Walsall in April. The reduction in losses compared to prior year was driven by tight cost control, an improved operational performance by Russell Ductile Castings, the ability to flex the workforce to the level of demand using the Government's furlough scheme and lower non-underlying costs of GBP0.2m (2019: GBP0.7m). Non-underlying costs included GBP0.1m of restructuring costs (2019: GBP0.7m).
Improved control of working capital and capital expenditure enabled net debt to increase only marginally to GBP4.7m from GBP4.6m at 31 March 2020.
Subsequent events
In December 2020, our principal customer BorgWarner gave notice of the early termination of all existing contracts, dealing a body blow to the company. This required Chamberlin to seek additional finance to remain solvent and pursue substantial further restructuring. A share issue was successfully undertaken in March 2021 generating GBP3.5m before costs.
The publication of these accounts was delayed until 16 April 2021 first by COVID-19, then by the loss of the BorgWarner contract and finally by the share issue.
Outlook
The Walsall foundry (including its associated machine shop) have experienced lower revenues in the second half, reflecting the progressive reduction in purchases from the historical principal customer BorgWarner. The prospects for utilisation of the machine shop remain unclear and the Board is continuing to review its options in the light of the continued reduction in purchases and the prevailing market conditions.
Meanwhile the prospects for growth at the Walsall foundry are encouraging. The casting of automotive turbocharger housings remains a dominant market for Chamberlin and demand across the sector remains stable. The capacity demands of BorgWarner previously left Chamberlin unable to supply prospective new, non-automotive customers, however, the Company is now able to exploit these new higher margin market opportunities. The Company is continuing with the cost reduction programme referred to above and further measures are planned. Overall, the headcount at 28 February 2021 was 239 and the restructuring programme plans to reduce the headcount to 138. The Board estimates that the annualised reduction in employment cost arising from the restructuring should not be less than GBP3.4 million.
Sales at RDC and Petrel in the second half are tracking ahead of the prior year and the outlook for both RDC and Petrel is encouraging, with the recent revenue growth expected to continue.
Management are confident that sales at Chamberlin will stabilise in the first half of the 2021/22 financial year and will then grow from the post BorgWarner low, with the growth gathering pace in the second half. The Board expects growth from all business units and a return to profitability and cash generation post our restructuring.
Keith Butler-Wheelhouse
Chairman
Consolidated Income Statement
for the six months ended 30 September 2020
Hot Features
Premium
Unaudited Unaudited
six months ended six months ended Year ended
Note 30 September 2020 30 September 2019 31 March 2020
# # #
Underlying Non-underlying Total Underlying Non-underlying Total Underlying Non-underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2 11,044 - 11,044 12,828 - 12,828 26,143 - 26,143
Cost of sales (9,458) - (9,458) (11,921) - (11,921) (23,632) - (23,632)
Gross profit 1,586 - 1,586 907 - 907 2,511 - 2,511
Other
operating
expenses 7 (1,798) (247) (2,045) (1,917) (686) (2,603) (3,635) (909) (4,544)
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Operating
loss (212) (247) (459) (1,010) (686) (1,696) (1,124) (909) (2,033)
Finance costs 3 (99) - (99) (147) - (147) (310) - (310)
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Loss before
tax (311) (247) (558) (1,157) (686) (1,843) (1,434) (909) (2,343)
Tax expense 4 (104) - (104) (143) - (143) (50) - (50)
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Loss for the
period
attributable
to equity
holders
of the
Parent
Company (415) (247) (662) (1,300) (686) (1,986) (1,484) (909) (2,393)
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Loss per
share:
Basic 5 (5.2)p (3.1)p (8.3)p (16.3)p (8.7)p (25.0)p (18.7)p (11.4)p (30.1)p
Diluted (5.2)p (3.1)p (8.3)p (16.3)p (8.7)p (25.0)p (18.7)p (11.4)p (30.1)p
(#) Non-underlying items include restructuring costs, hedge ineffectiveness, impairment, GMP equalisation, onerous leases and share-based payment costs together with the associated tax impact as disclosed in note 7 .
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2020
Unaudited
six months Unaudited
ended six months ended Year ended
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
Loss for the period (662) (1,986) (2,393)
-------------- ------------------ ------------
Other comprehensive
income
Ineffective portion
of movement in cash
flow hedges recycled
to income statement 124 - 138
Movements in fair value
of cash flow hedges
taken to other comprehensive
income (102) (165) (614)
Deferred tax on movements
in cash flow hedges 17 28 81
-------------- ------------------ ------------
Net other comprehensive
income/(expense) that
may be recycled to
profit and loss 39 (137) (395)
-------------- ------------------ ------------
Re-measurement (losses)/gains
on pension scheme assets
and liabilities (611) (261) 460
Deferred tax on re-measurement
(losses)/ gains on
pension assets and
liabilities 116 50 (87)
Net other comprehensive
(expense)/ income that
will not be reclassified
to profit and loss (495) (211) 373
-------------- ------------------ ------------
Other comprehensive
expense for the period
net of tax (456) (348) (22)
Total comprehensive
expense for the period
attributable to equity
holders of the Parent
Company (1,118) (2,334) (2,415)
============== ================== ============
Consolidated Balance Sheet
at 30 September 2020
Unaudited Unaudited
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
Non-current assets
Property, plant and
equipment 6,809 7,714 7,209
Intangible assets 303 264 341
Deferred tax assets 657 820 611
-------------- -------------- ---------
7,769 8,798 8,161
-------------- -------------- ---------
Current assets
Inventories 2,577 2,838 2,589
Trade and other receivables 4,434 5,140 6,082
Cash at bank 505 599 457
7,516 8,577 9,128
-------------- -------------- ---------
Total assets 15,285 17,375 17,289
============== ============== =========
Current liabilities
Financial liabilities 3,264 4,159 3,028
Trade and other payables 5,937 5,153 7,481
9,201 9,312 10,509
-------------- -------------- ---------
Non-current liabilities
Financial liabilities 1,941 2,491 2,037
Deferred tax liabilities 57 35 39
Provisions 200 200 200
Defined benefit pension
scheme deficit 2,442 2,791 1,959
4,640 5,517 4,235
Total liabilities 13,841 14,829 14,744
-------------- -------------- ---------
Capital and reserves
Share capital 1,990 1,990 1,990
Share premium 1,269 1,269 1,269
Capital redemption
reserve 109 109 109
Hedging reserve (260) (41) (299)
Retained earnings (1,664) (781) (524)
-------------- -------------- ---------
Total equity 1,444 2,546 2,545
-------------- -------------- ---------
Total equity and liabilities 15,285 17,375 17,289
============== ============== =========
Consolidated Cash Flow Statement
for the six months ended 30 September 2020
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
Operating activities
Loss for the period before
tax (558) (1,843) (2,343)
Adjustments for:
Net finance costs 99 147 310
Impairment charge on property, - - -
plant and equipment
Hedge ineffectiveness 124 - 138
Depreciation of property,
plant and equipment 483 476 980
Amortisation of software 29 22 52
Amortisation of development
costs 10 11 25
(Profit)/loss on disposal
of property plant and equipment - (12) (12)
Share based payments 17 - 59
Foreign exchange rate movements (22) (79) (91)
Difference between pension
contributions paid and
amounts recognised in the
Income Statement (150) (139) (279)
Decrease/(increase) in
inventories 13 (136) 113
Decrease/(increase) in
receivables 1,711 998 (95)
(Decrease)/increase in
payables (1,652) 400 2,265
Corporation tax received - - 424
-------------- -------------- -----------
Net cash inflow/(outflow)
from operating activities 104 (155) 1,546
-------------- -------------- -----------
Investing activities
Purchase of property,
plant and equipment (73) (400) (316)
Purchase of software - (7) (20)
Development costs - - (30)
Disposal of property,
plant and equipment - 12 12
-------------- -------------- -----------
Net cash outflow from investing
activities (73) (395) (354)
-------------- -------------- -----------
Financing activities
Interest paid (77) (118) (252)
Net invoice finance drawdown 301 1,495 279
Finance lease payments (208) (530) (1,066)
Net cash inflow/(outflow)
from financing activities 16 847 (1,039)
-------------- -------------- -----------
Net increase in cash and
cash equivalents 47 297 153
Cash and cash equivalents
at the start of the period 457 291 291
Impact of foreign exchange
rate movements 1 11 13
Cash and cash equivalents
at the end of the period 505 599 457
============== ============== ===========
Cash and cash equivalents
compromise:
Cash at bank 505 599 457
============== ============== ===========
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2020
Capital
redemption Hedging Retained
Share capital Share premium reserve reserve earnings Total equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2019 1,990 1,269 109 96 1,404 4,868
Loss for the period - - - - (1,986) (1,986)
Other comprehensive
expense for the period
net of tax - - - (137) (211) (348)
-------------- -------------- ------------ --------- ----------- --------------
Total comprehensive
expense - - - (137) (2,197) (2,334)
Share-based payments - - - - 14 14
Deferred tax on employee
share options - - - - (2) (2)
Total of transactions
with shareholders - - - - 12 12
At 30 September 2019 1,990 1,269 109 (41) (781) 2,546
Loss for the period - - - - (407) (407)
Other comprehensive
(expense)/income for
the period net of
tax - - - (258) 584 326
-------------- -------------- ------------ --------- ----------- --------------
Total comprehensive
(expenses)/income - - - (258) 177 (81)
Share-based payments - - - - 45 45
Deferred tax on employee
share options - - - - 35 35
-------------- -------------- ------------ --------- ----------- --------------
Total of transactions
with shareholders - - - - 80 80
At 1 April 2020 1,990 1,269 109 (299) (524) 2,545
Loss for the period - - - - (662) (662)
Other comprehensive
income/(expense) for
the period net of
tax - - - 39 (495) (456)
Total comprehensive
income/(expense) - - - 39 (1,157) (1,118)
Share-based payments - - - - 17 17
Deferred tax on employee - - - - - -
share options
Total of transactions
with shareholders - - - - 17 17
At 30 September 2020 1,990 1,269 109 (260) (1,664) 1,444
============== ============== ============ ========= =========== ==============
Notes to the Interim Financial statements
1 General information and accounting policies
The unaudited interim condensed consolidated financial statements do not comprise the Group's statutory accounts as defined by section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2020 were approved by the Board of Directors on 15 April 2021 and will be filed at Companies House in due course. The auditor's report on those accounts was unqualified, but contained an emphasis of matter paragraph relating to a material uncertainty regarding going concern.
Basis of preparation
The Group's financial statements have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006.
The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with AIM Rules issued by the London Stock Exchange.
Accounting policies
The principal accounting policies applied in preparing the interim Financial Statements comply with IFRS as adopted by the European Union and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 March 2020.
No new standards or interpretations issued since 31 March 2020 have had a material impact on the financial statements of the Group.
Going concern
The Group's detailed budget for the year ending 31 March 2022 and extended forecast for the six months to 30 September 2022 take into account the net proceeds of GBP3.3m raised from the Share Placing and Subscription announced on 26 March 2021 and the Director's view of most likely trading conditions. These forecasts and projections indicate that existing bank facilities are expected to remain adequate. The budget and extended forecast provides for significant revenue growth in the second half of the year to 31 March 2022 and the 6 months to 30 September 2022, which is needed to replace the lost BorgWarner contracts. The budget includes the significant but necessary benefits and costs of the restructuring that will be required to right-size the cost-base to the lower level of revenue. As the implementation and delivery of the restructuring benefits and costs are within the control of the Directors, no downside sensitivities have been applied in relation to these. The Directors have, however, applied reasonably foreseeable downside sensitivities to the budget and forecast, which assumes that sales growth from October 2021 onwards is only 3% above the first half average and the machine shop has no sales output. In the detailed budget, extended forecast and sensitised scenario, the possible receipt of compensation from BorgWarner has been entirely discounted, as has any sales of no-longer required machinery.
As a consequence, after making enquiries, the Directors have an expectation that, in the circumstances of a reasonably foreseeable downside scenario as described above, the Group and Company have adequate resources to continue in operational existence for the foreseeable future.
However, the rate at which new work can be secured to replace the lost BorgWarner activity is difficult to predict resulting in material uncertainty, which may cast significant doubt over the ability of the Group and Company to realise its assets and discharge its liabilities in the normal course of business and hence continue as a going concern.
The Directors continue to adopt the going concern basis, whilst recognising there is material uncertainty relating to the above matter.
2 Segmental analysis
For management purposes, the Group is organised into two operating divisions: Foundries and Engineering. The operating segments reporting format reflects the Group's management and internal reporting structures for the Chief Operating Decision Maker.
Revenue Operating (loss)/ profit
Unaudited Unaudited Unaudited Unaudited
six months six months Year six months six months
ended ended ended ended ended Year ended
30 September 30 September 31 March 30 September 30 September 31 March
2020 2019 2020 2020 2019 2020
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Foundries 9,958 11,177 23,106 201 (522) (84)
Engineering 1,086 1,651 3,037 21 18 (45)
-------------- -------------- ----------- -------------- -------------- -------------
Segmental results 11,044 12,828 26,143 222 (504) (129)
-------------- -------------- -----------
Shared costs (434) (506) (995)
Non-underlying
items (Note
7) (247) (686) (909)
Net finance
costs (Note
3) (99) (147) (310)
Loss before
tax (558) (1,843) (2,343)
============== ============== =============
The Foundries segment is a supplier of iron castings, in raw or machined form, to a variety of industrial customers who incorporate the castings into their own products or carry out further machining or assembly operations on the castings before selling them on. The Engineering segment provides manufactured hazardous area lighting products to distributors and end-users.
Financing and income tax are managed on a Group basis and are not allocated to operating segments.
3 Net f inance costs
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
Interest on bank overdraft (52) (46) (164)
Interest expense on lease liabilities (25) (72) (88)
Net interest on defined benefit pension
liability (22) (29) (58)
(99) (147) (310)
============== ============== ===========
4 Income tax expense
An estimated effective rate of tax for the six months to 30 September 2020 of 18.6% (30 September 2019: 7.8%) has been used in these interim statements. This rate is higher than the standard corporation tax rate of 19% due primarily to not recognising a deferred tax asset on trading losses, due to uncertainty over when the losses will recoverable. The corporation tax rate remained at 19% for the year ended 31 March 2020.
5 Loss per share
The calculation of loss per share is based on the loss attributable to shareholders and the weighted average number of ordinary shares in issue. In calculating the diluted loss per share, adjustment has been made for the dilutive effect of outstanding share options where applicable. Underlying loss per share, which excludes non-underlying items and the related tax thereon as disclosed in Note 7, as analysed below, has been disclosed as the Directors believe this allows a better assessment of the underlying trading performance of the Group.
Unaudited Unaudited
six months ended six months Year ended
30 September ended 31 March
2020 30 September 2020
2019
GBP000 GBP000 GBP000
Loss after tax for basic earnings
per share (662) (1,986) (2,393)
Non-underlying operating items 247 686 909
Taxation effect of the above - - -
------------------ -------------- -------------
Loss for underlying earnings
per share (415) (1,300) (1,484)
------------------ -------------- -------------
Unaudited Unaudited
six months ended six months Year ended
30 September ended 31 March
2020 30 September 2020
2019
000 000 000
Weighted average number of ordinary
shares 7,958 7,958 7,958
Adjustment to reflect dilutive
shares under option 217 424 217
------------------ -------------- -------------
Diluted weighted average number
of ordinary shares 8,175 8,382 8,175
------------------ -------------- -------------
There is no adjustment for the shares under option in the diluted loss per share calculation as they are required to be excluded from the weighted average number of shares as they are anti-dilutive.
6 Pensions
The Group operates a defined benefit pension scheme and a defined contribution pension scheme on behalf of its employees. For the defined contribution scheme, contributions paid in the period are charged to the income statement. For the defined benefit scheme, actuarial calculations are performed in accordance with IAS 19 in order to arrive at the amounts to be charged in the income statement and recognised in the statement of comprehensive income. The defined benefit scheme is closed to new entrants and future accrual.
Under IAS 19, the Group recognises all movements in the actuarial funding position of the scheme in each period. This is likely to lead to volatility in shareholders' equity from period to period.
The IAS 19 figures are based on a number of actuarial assumptions as set out below, which the actuaries have confirmed they consider appropriate. The projected unit credit actuarial cost method has been used in the actuarial calculations.
30 September 30 September 31 March
2020 2019 2020
Salary increases n/a n/a n/a
Pension increases (post 1997) 2.8% 3.0% 2.6%
Discount rate 1.4% 1.7% 2.3%
Inflation assumption - RPI 2.85% 3.1% 2.6%
Inflation assumption - CPI 1.95% 2.2% 1.7%
The demographic assumptions used for 30 September 2020 were the same as those used at 31 March 2020, and were based on the last full actuarial valuation performed as at 31 March 2019. The contributions expected to be paid during the year to 31 March 2021 are GBP300,000. The next triennial valuation is due as at 31 March 2022.
The defined benefit scheme funding has changed under IAS 19 as follows:
Unaudited Unaudited
six months six months Year ended
Funding status ended ended 31 March
30 September 30 September 2020
2020 2019 GBP000
GBP000 GBP000
Scheme assets at end of period 15,789 16,861 14,538
Benefit obligations at end of
period (18,231) (19,652) (16,497)
------------------------ -------------------------- -------------
Deficit in scheme (2,442) (2,791) (1,959)
Related deferred tax asset 415 474 333
------------------------ -------------------------- -------------
Net pension liability (2,027) (2,317) (1,626)
======================== ========================== =============
The increase in the net pension liability since 31 March 2020 is mainly due to an increase in the value of liabilities as a consequence of a reduction in bond yields reducing the discount rate.
7 Non-underlying items
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2020
2020 2019
GBP000 GBP000 GBP000
Group reorganisation 106 672 712
Hedge ineffectiveness 124 - 138
Share-based payment charge 17 14 59
-------------- -------------- -------------
Non-underlying operating costs 247 686 909
Taxation
- tax effect of non-underlying - - -
costs
247 686 909
============== ============== ===============
During the half year ended 30 September 2020, the Group continued to realign the cost base to the reduced levels of revenue, incurring Group reorganisation costs of GBP106,000, which include redundancy and related costs.
The hedge ineffectiveness charge of GBP124,000 in 2020 arises from a reduction in highly probable Euro denominated sales as a result of economic disruption to our customers caused by COVID-19.
8 Net debt
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2020
2020 2019
GBP000 GBP000 GBP000
Financial liabilities
Net cash (505) (599) (457)
Current instalments due on finance
leases 1,003 1,022 1,103
Invoice finance liability 2,261 3,137 1,925
-------------- -------------- -------------
Net debt due in less than one
year 2,759 3,560 2,571
-------------- -------------- -------------
Instalments due on finance leases
in greater than one year 1,941 2,491 2,037
Net debt 4,700 6,051 4,608
============== ============== =============
9 SUBSEQUENT EVENTS
On 16 December 2020, the Company announced that it had received notice from its major customer, BorgWarner Turbo Systems Worldwide Headquarters GmbH, of its intention to cancel all contracts with effect from 22 January 2021. Following this announcement, it became evident that the Company was not in a position to publish its 2020 Accounts by the agreed extended date of 31 December 2020 in accordance with AIM Rules. Consequently, the Company's shares were suspended from trading on AIM with effect from 4 January 2021.
The Board and its advisers immediately implemented measures to reduce costs and preserve cash whilst exploring options to strengthen the balance sheet in order to safeguard the Company's future. After evaluating a number of alternative options with its advisers, the Company issued a GBP200,000 unsecured convertible loan note to Mr Trevor Brown in February 2021 to provide immediate short-term working capital, which was converted into 3,333,333 Ordinary Shares following Shareholder approval at the General Meeting held on 8 March 2021. On that same date, Mr Trevor Brown was appointed to the Board of Chamberlin as a Non-Executive Director.
The Board continued to explore further funding possibilities and on 26 March 2021 announced that the Company had raised net proceeds of GBP3.3 million by way of a Share Placing and Subscription. The primary purpose of the Share Placing and Subscription was to fund working capital and to meet the restructuring costs associated with reducing the cost base to a level appropriate to the lower ongoing revenue of the Group. Following the publication and filing of the annual audited accounts for the year end 31 March 2020 and the publication of the interim results for the six months ended 30 September 2020, the Company will immediately apply for the suspension of trading of the Company's Ordinary Shares on AIM to be lifted by the London Stock Exchange.
10 Interim report
This interim results statement is available on the Group's website, www.chamberlin.co.uk.
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END
IR IAMJTMTTBTFB
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