Castings group raises £830k to boost balance sheet

Castings and engineering group Chamberlin has conditionally raised £830k to support its growth strategy and strengthen its balance sheet.

The Walsall-based foundry operator has placed 31,350,000 shares at 2p per share – a discount of almost 30% in comparison to the closing mid-market price of 2.85p per share on January 8.

Trevor Brown, executive director of Chamberlin and other undisclosed investors subscribed to more than 10,000 of those shares.

The move follows the firm’s raising of £330,000 after another placing and subscription of shares in May last year. Funds were used to provide working capital to take advantage of potential opportunities arising as a result of a competitor of Russell Ductile Castings going into administration.

Cavendish Capital Markets and Peterhouse Capital acted as joint bookrunners to the placing.