Foundry group to deliver improved performance

For the year to the end of March it saw revenue on continuing operations rise from £30.2 million to £33m.

While there was an operating loss before tax of £900,000, the sale of Cannock-based engineering subsidiary Exidor, which makes emergency exit hardware, to Assa Abloy for £10m in December meant that profit after tax was £1.5m.

Profits were impaired by £3m on a revaluation of the fixed assets of the foundry division as the value of its two sites could not be supported by the current level of business.

Foundry revenue grew by 11.2 per cent on the year to £29.3m, reflecting a strong first half of 2018-2019, but continuing engineering revenue decreased by 3.8 per cent to £3.6m.

Chairman Keith Butler-Wheelhouse said: "Although revenues are expected to reduce, we are positioning Chamberlin to deliver an improved operating financial performance in the 2019-2020 financial year."

Last week Chamberlin revealed that its annual operating losses would be £300,000 worse than had been expected mainly due to a bad debt..

The specialist castings and engineering group has its128-year-old Chamberlin and Hill foundry site in Chuckery Road and its new machining centre on the Maple Leaf Industrial Estate.

Mr Butler-Wheelhouse said the proceeds of the sale of Exidor were used to reduce both the level of debt and the pension deficit. The pension deficit at the year end was £2.6m compared to £5.1m last year.

On a like-for-like basis, net debt reduced from £8.9m in 2018 to £4.4m.

"Although each of our businesses grew during the year, the performance of our principal foundry operations deteriorated in the second half, with our automotive turbocharger customers reducing their schedules. This partly reflected upheavals in their activities as the car manufacturers adjusted their offerings in response to the new emissions testing regime and took account of wider trading conditions," he said.

Chamberlin is now re-organising its foundry operation to better match trading conditions.