News blog

Chamberlin

  • BY: Andrew Hore |
  • POSTED: 29/11/2011 |

Improved trading by the company’s foundries helped Chamberlin to nearly quintuple profit in the six months to September 2011. 

Revenues were 25% higher at £23m, while underlying pre-tax profit jumped from £163,000 to £797,000. Net debt fell from £2.88m to £2.04m, helped by the £500,000 share issue in the period.

All the castings businesses are doing well. The light castings business in Walsall continues to benefit from growth in demand for turbocharger castings.  The heavy castings business in Scunthorpe has grown is revenues significantly over the past 18 months and sales are running at more than £1m a month. The Leicester foundry returned to pre-recession volumes at the end of the interim period.

There was a mixed performance from the other activities. The Petrel hazardous lighting business performed poorly but the security and safety business benefited from the recent add-on acquisition.

Chamberlin is paying an interim dividend of 1p a share. Last year’s final dividend was the first distribution since the end of 2008.

finnCap forecasts a profit of £1.6m for the year to March 2012.

At 118p a share, up 5p, Chamberlin is valued at £9.21m. The shares are trading on eight times prospective earnings for 2011-12.

Management would like to make acquisitions but two have fallen through in recent times. The most attractive of those targets was a machining business where the asking price proved too high. Acquiring a machining business will enable Chamberlin to offer finished product to customers.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFNovember2011_26.pdf

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