30th May 2019 13:04
LONDON (Alliance News) - Chamberlin PLC said Thursday that despite strengthening its trading position with a recent subsidiary sale, conditions had worsened with expectations of a deeper annual loss than forecast.
The castings maker explained that it had improved its trading position through the sale of Exidor Ltd in December. Chamberlin sold Exidor to Assa Abloy Ltd for GBP10 million which had strengthened its balance sheet and also "significantly" reduced its pension liabilities.
Despite this, current trading conditions have "toughened" since its February trading update.
For the year ended March, the firm now expected its operating loss before non-underlying items to stand at GBP600,000. This is around GBP300,000 worse than previously forecast, primarily due to specific bad debt.
The firm has also been undertaking a cost-reduction exercise, which has resulted in a number of other non-underlying costs associated with rationalising the business. Two sites within its foundry business, for example, have been impaired by around GBP3.0 million.
Including these additional costs, the operating loss for the year ended March is expected to be around GBP4.5 million. When combined with a GBP6.5 million profit from discontinued operations, post-tax profit is expected to be GBP1.5 million.
For the year ended March 2018, Chamberlin generated a GBP813,000 post-tax loss on revenue of GBP37.7 million.
Shares in Chamberlin were untraded at 40.08 pence on Thursday. The firm expects to release its annual results on Tuesday.
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