Chamberlin PLC Trading Update (6357A)

TIDMCMH

RNS Number : 6357A

Chamberlin PLC

30 May 2019

AIM: CMH

30 May 2019

CHAMBERLIN PLC

("Chamberlin" or "the Group")

Trading Update

Chamberlin, the specialist castings and engineering group, announced on 5 February 2019 that while the Company's trading position had been strengthened by the sale of Exidor Limited in December 2018, current trading conditions had toughened giving rise to an expected operating loss from continuing operations, before non-underlying items*, in the year to 31 March 2019 of approximately GBP0.6m.

The Company is in the process of finalising the results for the year to 31 March 2019 and following a final review with its auditors the Company now expects to report an operating loss before non-underlying items* some GBP0.3m worse than previously indicated, mainly reflecting a specific bad debt.

The Company had also announced previously that the Board has implemented a number of cost reduction measures, which has involved various reorganisation and other costs necessary in rationalising the business. This exercise has included an impairment review of the two sites within the foundry division, which has resulted in a non-cash write-down in value of the assets of approximately GBP3.0m.

Including this write-down and other non-underlying costs incurred in the period the Company expects to announce an operating loss for the year to 31 March 2019 of approximately GBP4.5m, together with a profit on discontinued operations of approximately GBP6.4m, giving rise to a profit after tax and finance costs for the year of approximately GBP1.5m.

The Board expects to issue its preliminary results statement for the year to 31 March 2019 on 4 June 2019.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

* non-underlying costs comprise exceptional items, administration costs of the company pension scheme and net financing costs on pension obligations, share based payment costs, GMP Equalisation, impairment of fixed assets and onerous leases

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 
 
 KTZ Communications                  T: 020 3178 6378 
  (Financial PR) 
  Katie Tzouliadis, Dan Mahoney 
 

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May 30, 2019 07:35 ET (11:35 GMT)