Chamberlin results underline manufacturing resurgence

BLACK Country foundry and manufacturer Chamberlin has returned to profit, and is starting to see its order book return to pre-recession levels.

In its half year report, the group said revenues had increased 29% to £18.3m, and underlying profits of £222,000 contrasted with a £635,000 loss for the previous period.

The group was benefitting from its pre-recession modernisation programme, it said, and ‘significant new contracts’ in the first half of 2011 gave it confidence the recovery would continue. It said full year results were anticipated to be ahead of market expectations
 
Chairman Tom Brown said: “Results for the half year show sales up by 29% over the same period last year to £18.3m. While that is still approximately 20% below the Group’s pre-recession first half peak of £23.5m in 2008, we expect revenues to continue to build.  

• Latest Chamberlin share price: click here

 
“The modernisation programme we completed before the downturn and the measures we took during recession to reduce costs and further improve efficiencies are benefiting Chamberlin’s competitive position as the trading backdrop improves. We are now winning business as engineering demand recovers both in the UK and globally.
 
“In addition, with the platform for growth in place, we are also returning to our aim of acquiring complementary businesses, fitting our criteria of “difficult things done well”.
 

“We have experienced recovery across almost all our activities and with continuing evidence of growth and our expectations of new orders we believe that the Group is likely to deliver pre-tax profits for the full year ahead of current market forecasts.”

Specialist castings for automotive turbochargers drove demand in Chamberlin’s light castings foundry at Walsall, with the improvement in volumes on existing products supplemented by demand for new designs.

Turbocharger castings are expected to provide significant growth for the Walsall foundry as emissions regulations demand the use of turbocharger technology in petrol-engined vehicles.