29th Feb 2016 08:42
LONDON (Alliance News) - Castings and engineering group Chamberlin PLC on Monday said its underlying pretax profit should beat market expectations, as it secured a new automotive contract and invested in a new facility.
Chamberlin said underlying pretax profit for the year to the end of March should come ahead of market expectations, despite revenue being held back by the slowdown in activity in the oil and gas industry. The group will be boosted by a major construction vehicle contract which completed in the financial year, plus an in-line performance from its engineering arm.
Chamberlin added it has won a GBP3.3 million contract in the automotive industry, revenue from which will flow through in the second half of its 2017 financial year and thereafter. Chamberlin did not name the client for the deal.
Chamberlin also said it has made a GBP1.6 million investment in a new machining facility, which will be funded through a UK Regional Growth Fund grant and new debt facilities from HSBC. it said the facility, when completed in early 2017, will boost its position in the grey iron bearings supply market.
Chamberlin shares were up 6.3% to 68.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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