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Chamberlin

  • BY: Andrew Hore |
  • POSTED: 19/05/2015 |

Castings and engineered products supplier Chamberlin returned to profit in the full year but the weak Euro and tough trading mean that it will be difficult to make much progress this year. 

An underlying loss of £800,000 was turned into an underlying profit of £800,000 in the year to March 2015, as revenues were 6% ahead at £40.8m. The full year underlying profit was double the level at the interim stage.

The underlying profit excludes pension expense of £280,000 and exceptional costs of £417,000 made up of reorganisation charges and environmental clean-up costs for Scunthorpe.

There was a strong turnaround in the foundries division from an operating loss of £244,000 to an operating profit of £1.26m. Turbo charger orders boosted the performance in Walsall but Leicester and Scunthorpe are finding it more difficult to win new business. Longer-term, there is potential for Leicester to supply turbine hostings.

The engineering division continues to grow its profit which moved from £672,000 to £988,000. Exports are boosting the sales of this division and efficiencies are helping to improve margins.

Net debt was £3.8m at the end of March 2015.

House broker Charles Stanley forecasts a 2015-16 profit of £900,000 on revenues of £41.9m.

The share price rose 1p to 85.5p, which values the company at eight times prospective 2015-16 earnings.

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