Chamberlin PLC Trading Update, New Contract & New Facility (3806Q)
29 February 2016 - 6:00PM
UK Regulatory
TIDMCMH
RNS Number : 3806Q
Chamberlin PLC
29 February 2016
29 February 2016
AIM: CMH
Chamberlin plc
("Chamberlin" or "the Group" or "the Company")
Trading Update,
Major New Contract
&
New Investment in Machining Capability
Chamberlin plc (AIM: CMH.L), the specialist castings and
engineering group, is pleased to provide an update on trading for
the financial year ending 31 March 2016. In addition, the Company
announces the award of a major new automotive contract and a
significant new initiative to launch the Group's integrated
machining capabilities.
Results for the full year are expected to show underlying profit
before tax ahead of current market expectations on slightly lower
revenues. This is despite the continued slowdown in the Group's
core markets, including the automotive, steel and oil & gas
sectors, and reflects the benefits of a material construction
vehicle contract which completed in the current financial year as
well as a satisfactory performance from the Group's engineering
operations.
The Board is pleased to report a major new automotive contract
win worth an additional GBP3.3m of sales per annum. The initial
benefits of the new contract will be felt in the second half of the
financial year to 31 March 2017, with production volumes coming on
stream more fully thereafter. The contract is also strategically
important as it marks the commencement of the Group's supply of
turbo charger bearing housings which are fully machined
in-house.
To support Chamberlin's move into fully machined components, a
new machining facility will be established with an initial GBP1.6m
of investment. This will be funded through a Regional Growth Fund
grant and new debt facilities from HSBC and production at the new
facility is scheduled to commence in early 2017. The facility, when
complete, will position the Group as the only fully integrated
supplier of grey iron bearing housings in Europe and is expected to
open up significant new long term growth opportunities for the
Group.
Results for the year are expected to be announced towards the
end of May when a further update on trading will be provided.
Chairman, Keith Butler-Wheelhouse said:
"While trading conditions remain challenging, the business is
making good progress. This reflects the management's focus on cost
efficiencies, improving processes and new business initiatives as
we continue to target profitable revenue growth.
The major new automotive contract win we are announcing today is
an important development for our foundry operations at Walsall and
we are now committing significant investment to develop our
machining capability to support this exciting long term growth
opportunity.
This new contract also demonstrates Chamberlin's ability to
delivery of a world class product at a competitive cost and,
following our investment, the Group will be positioned as the only
fully integrated supplier of grey iron bearing housings in
Europe."
Enquiries
Chamberlin plc (www.chamberlin.co.uk) T: 01922
Kevin Nolan, Chief Executive 707100
David Roberts, Finance Director
Panmure Gordon T: 020
(Nominated Adviser and Broker) 7886 2500
Russell Cook, Peter Steel
KTZ Communications T: 020
(Financial PR) 3178 6378
Katie Tzouliadis, Viktoria Langley,
Emma Pearson
This information is provided by RNS
The company news service from the London Stock Exchange
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