Foundry group ready to turn up the heat on earnings
Castings and engineering group Chamberlin has enjoyed “very encouraging revenue growth” after a challenging period.
It had suffered “technical issues” at its new facility which had hit earnings and its share price, but is now ready to put those problems behind it.
Chamberlin’s chairman Keith Butler-Wheelhouse, said: “While the year has delivered on our revenue expectations, margins have suffered due to the difficulties we have encountered in the start-up of our new machining facility, and ramp up of the Walsall foundry to meet unexpected demand.
“The technical issues at the new machining facility continue to improve. New products for machining are also being introduced.”
Revenues were up 17% to £37.7m in the year to March, but underlying operating profits nearly halved to £0.4m.
He added: “The group remains well placed for further progress over the new financial year as cost efficiencies are realised.”