Chamberlin H1 profits rise with foundries back to pre-recession levels
CHAMBERLIN, the Walsall-based specialist castings and engineering group, has announced a 25% rise in half-year revenues with underlying pre-tax profit up 489% on the corresponding period last year.
Revenues in the six months to September 30 stood at £23.0m (2010: £18.3m), while underlying operating profit was up 379% to £841,000 (2010: £222,000). Statutory operating profit rose 419% to £796,000 (2010: £190,000).
Underlying pre-tax profit rose to £797,000 (2010: £163,000), while statutory pre-tax profit was up 780% to £710,000 (2010: £91,000). Positive operating cash flow more than doubled to £947,000 (2010: £383,000).
Underlying earnings per share rose by more than six times to 8.3p (2010: 1.28p), with basic EPS increasing to 7.5p (2010: 0.58p).
The group has announced an interim dividend of 1.0p per share and said full-year performance is likely to be in line with current market expectations.
Chamberlin said the strong results owed much to improved production at its three foundries, which are now operating at above pre-recession levels.
Tom Brown, Chamberlin chairman, said: “Having returned to profitability in the first half of the last financial year, I am pleased to report that Chamberlin has continued to make good progress in the first six months of the current financial year.
Underlying profit before tax has increased almost fivefold to £797,000 on revenues up by 25% to £23.0m and all three of our foundries are operating at or above pre-recession levels.
“This pleasing performance has been driven by improving demand in our established customer base, new business initiatives and operational improvements. In addition, having returned to dividend payments at the full year, we are declaring an interim dividend.”
He said the group’s existing operations continued to make good progress and with a sound financial base, the firm was well placed to exploit organic growth opportunities. At the same time, it is also considering growth-potential acquisitions.
Longer term, he said while economic uncertainties continued to cloud the picture, the group was confident it would meet market expectations.
