Engineering group’s share price drops to six-year low
THE share price of engineering group Chamberlin dropped to a six-year low this morning after announcing results “affected by tougher trading conditions and currency”.
The Walsall-based group had warned shareholders in July and November that trading had been “subdued” and its underlying performance would be behind the previous year.
Results announced today for the year to March 2016 showed a small pre-tax loss of £236,000 following a 15% fall in revenue to £35.0m.
Its shares fell 16% to 55p in the first hour of trading, 70% below its 2012 peak. It improved slightly by the close of trading, to 60p, its lowest close since September 2010.
Keith Butler-Wheelhouse, chairman of Chamberlin, said: “Trading conditions over the year have been challenging, with a continuing slowdown in the group’s core markets and the strength of Sterling against the Euro a significant headwind.
“Revenues at £35.0m and underlying profit before tax at £0.7m are in line with market expectations, with this performance supported by both our tight focus on cost and our programme to improve efficiencies and improve processes.
However the group is optimistic of a return to profit, helped by contract wins including an automotive contract worth £3.3m a year that will begin this autumn.
“While there is still work to be done, the group is in a stronger position than it was two years ago and we remain committed to delivering further progress,” added Mr Butler-Wheelhouse.
