Profit warning issued by Chamberlin

SPECIALIST foundry and engineering group Chamberlin has warned shareholders to expect to see subdued performance from the first three months of its financial year.

In a statement to the London Stock Exchange accompanying its half year results for the six months to September 30, it revealed that performance has been affected by tough trading conditions and currency issues.

It said revenues of £18.0m (2014: £21.1m) reflect subdued demand from the steel, oil & gas, and mining sectors.

Its underlying profit before tax was £100,000 (2014: £0.4m). The firm said it has been affected by a weak Euro.
 
Chamberlin’s board expects underlying profit before tax for FY 31 March 2016 to be below the prior year – however the outlook for FY 31 March 2017 remains strong, supported by contract wins, it says. 
 
Chairman, Keith Butler-Wheelhouse, said: “Results have been impacted by both the weak Euro and a slowdown in some of our core markets and therefore, despite the continued drive for efficiency, half year profits are behind the same period last year.
 
“Looking ahead, given the current tough trading environment, the board expects underlying profitability for the current financial year to be below the £0.8m achieved in the prior financial year.

“However, we anticipate the profit outlook for the next financial year to 31 March 2017 to recover, with the major contract wins at Walsall expected to enter into production in 2016.

“The measures we have taken to achieve cost efficiencies and improve processes also leave the group better positioned for profitable revenue growth.”