City briefs: Chamberlin; Headlam Group; Secure Trust Bank; Halfords; Sumo Group
Chamberlin, the specialist castings and engineering group, has said it is looking at various ways to secure the future of the business after being handed a contracts boost this morning (January 21).
The firm announced on 16 December of BorgWarner’s intention to cancel all contracts with effect from January 22. However, that decision has been reversed and it has now received revised orders from BorgWarner through to March 22.
A statement from Chamberlin said: “The board is implementing further measures to reduce costs and is exploring options to strengthen the balance sheet, including investigating the possibility of new equity capital and alternative measures to ensure the company’s future.”
Headlam Group, the floorcoverings firm, has said its turnover for 2020 is likely to come in 15.33% lower than the previous year at £609.1m due to strong trading in it second half. The recovery was driven by the UK residential sector which performed “exceptionally well”. The company expects to report underlying profit before tax towards the top of the range of £14m to £16m.
Birmingham-based Secure Trust Bank says it expects its year-end profit before tax to be “materially ahead” of its previous guidance of £9.7m. In a statement this morning, the bank said: “While the board continues to be encouraged by current trading, it recognises that the impact of Covid-19 on the UK economy generates potential uncertainty in the near term. The group will be better placed to comment on financial year 2021 outlook when it publishes its financial year 2020 results.”
The chief executive of Halfords, Graham Stapleton, has been awarded the shares promised to him when he left his previous role at Dixons Carphone in January 2017. Stapleton received 185,872 shares priced at £2.955 which were compensation for those forfeited. The shares were sold yesterday (January 20).
Sumo Group, the Leamington Spa-based games developer, says that its its revenue and adjusted EBITDA for the full year ended 31 December 2020 are expected to be ahead of market expectations of at least £16m. The higher-than-expected results reflect strong performances from Sumo Digital and its latest acquisition, Pipeworks, and higher than expected royalty income, during the year.
