Investors’ confidence remains fragile at foundry business

The share price of foundry business Chamberlin took another 10% tumble yesterday after it confirmed operating losses were larger than had been forecast.

Its shares hit a 10-year low last week when it first revealed that a bad debt was going to increase its operating losses for the year to March by half, to £900,000, and there would be a £3m non-cash writedown of its assets.

The Walsall-based company made a profit overall because it sold its Exidor business but is now cutting costs to get in better financial shape.

Chamberlin’s chairman Keith Butler-Wheelhouse said: “We are now engaged in right-sizing our structure to better match trading conditions.”

He believes the changed will have a positive impact on the business’s performance.

“Although revenues are expected to reduce, we are positioning Chamberlin to deliver an improved operating financial performance in the 2019/20 financial year”, he added.

Despite that, Chamberlin’s shares closed down 11% yesterday at 33.5p, and have now lost two-thirds of their value in the last year.

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