Chamberlin returns to profit as growth continues

ENGINEERING group Chamberlin has returned to full year profitability and restored dividends after weathering the worst of the industrial decline.

The Walsall based group said revenues had increased by 40% to £39.801m, compared with £28.453m last year, driven by continuing recovery across its core business.

Underlying operating profit reached £0.904m, which compared with a full year loss of £0.895m in 2010.

The second half pick up in business was illustrated by the fact £0.682m in profit came in during the period compared with £0.222m in the first six months.

Underlying pre-tax profit reached £0.804m, compared with a loss of £1.028m in 2010.
The business generated £1.791m in operations, up from £0.5m in 2010, while net debt reduced to £2.9m, its lowest level since March 2008.

Underlying earnings per share increased to 6.7p, compared with a loss last year of 12.8p.
The company said foundry activities continued to recover, with light castings at 100% of pre-recession levels and heavy castings above pre-recession levels in Q4.

The firm benefited from the February acquisition of the assets and intellectual property of Jebron Ltd, which is expected to add over £1m of profitable annual sales.

Chairman Tom Brown said: “The financial year to March 31, 2011 marked a turning point for Chamberlin, with the company returning to profit and recommencing the payment of dividends.

“Demand recovered throughout the year and the final quarter saw volumes at the group’s Walsall and Scunthorpe foundries match or exceed pre-recession levels. Production at Chamberlin’s third foundry at Leicester was at 85% of pre-recession levels but volumes are continuing to build.”  

He said the group was well positioned for growth, helped by the modernisation and investment programme completed prior to recession.

“We expect the group to make progress over the financial year. With demand for our products linked to global engineering activity, we see powerful long term trends favouring our business,” he added.

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