Trading is ‘tough’ for engineering group trying to ‘right-size’

Shares in engineering group Chamberlin were close to an all-time low last night with the Walsall group acknowledging trading “remains tough” for the struggling business.

Last month the foundry operator revealed a £3m non-cash writedown of its assets and said operating losses were larger than had been forecast.

It has been cutting costs to “right-size” its structure following the sale of its Exidor business.

Chairman Keith Butler-Wheelhouse will tell Chamberlin’s shareholders at its AGM today that this work is ongoing.

He will say: “Trading conditions remain tough with reduced demand from the European Auto Industry for Turbocharger components. As previously indicated substantial cost savings are being implemented.

“The savings will be fully effective in the second half, with overheads right-sized for the expected level of business. The first half will bear the costs of overhead reductions.”

Keith Jackson will stand down from the board at the meeting, after 14 years as a non-executive director.

David Flowerday will replace Jackson as chair of the audit committee, although the company says it has “no current plans” to appoint another non-executive Director.