Shares suspended as manufacturer faces winding-up petition
Castings and engineering group Chamberlin has been issued with a winding-up petition, resulting in its shares being suspended from trading on AIM.
The Walsall-based foundry operator’s main power supplier had hit them with a petition off the back of its cost-reduction programme being implemented from April 10.
Chamberlain’s capital position was “being managed” but “required the continued co-operation of creditors”.
A court hearing was held this morning (May 7), where it was determined that the petition would be adjourned until July 2.
In a statement to the London Stock Exchange, Chamberlain said: “The Company will discuss the current position with its creditors and major shareholders but, pending conclusion of those discussions and clarification of the Company’s financial position, Chamberlin requested that trading in the Company’s ordinary shares on AIM be suspended with immediate effect.”
The underlying demand for Chamberlin had been lower than expected in Q3, with lower sales also negatively affecting profitability and working capital. To tackle the challenges, price increases as well as a cost-cutting strategy were implemented but this resulted in the share price dropping.
It was also announced a week later that Chairman Keith Butler-Wheelhouse and finance director Alan Tomlinson were set to depart.
Chamberlin sold its specialist industrial manufacturing subsidiary in a £3m deal to Project Apollo, part of investment firm Longacre Group. Petrel operates across the world in the oil and gas, marine and defence sectors and its 35 employees based in Kitts Green, Birmingham, will be retained by the new owners and will add to its 700 employees across Europe, US and Asia.
Proceeds from the deal were expected to reduce the group’s liabilities by £2.6m and contribute a profit of no less than £2m in 2024. £600k will be paid to HSBC to reduce Chamberlin’s debt and release certain charges over the shares and assets of Petrel.
