CMH

TIDMCMH

Chamberlin PLC

16 December 2022

16 December 2022

Chamberlin plc

("Chamberlin", the "Company" or the "Group")

Corporate Update

Chamberlin plc (AIM: CMH.L), the specialist castings and engineering group, announces the following corporate update.

Headlines

-- Russell Ductile Castings returns best ever monthly performance, exceeding GBP1 million monthly revenue for the first time, in November 2022

   --      Investment in new plant and equipment at RDC now complete 
   --      Group defined benefit pension scheme now in a surplus position 

Russell Ductile Castings ("RDC")

As previously announced, RDC, the Group's Scunthorpe based foundry and the UK's leading provider of large, technically challenging Cast Iron products, has now completed a programme of investment in new plant and equipment which strengthens its position as a key supplier to the renewable offshore energy, energy generation and construction industries.

This investment is a key milestone for RDC and positions the business as the UKs largest foundry to provide castings ranging from 100kg to 7000kg, increasing RDC's ability to produce large castings over three tons by around 30%. The rapidly growing trend for localised supply chains and manufacturing re-shoring, coupled with RDC's focus on the renewable energy market, has seen orders books reach record levels in the last 12 months.

Pleasingly, RDC exceeded GBP1.0 million of revenue in November 2022 for the first time and reported an order book of around GBP4.0 million, remaining on track to deliver to the Board's expectations. This strong financial performance, along with a strong sales enquiry pipeline of approximately GBP17 million, underpins the decision to make the investment and capitalise on market opportunities.

Group Pension Scheme

The Group has one defined benefit pension scheme, which is closed to future accrual. As reported in the Company's Final Results in November 2022, the defined benefit pension scheme moved from a liability position of GBP1.2 million at 31 May 2021 to a GBP0.1 million surplus at 31 May 2022, as reduced liabilities arising from an increase in bond yields and Group contributions of GBP0.9 million more than offset a reduction in the market value of scheme assets.

The triennial valuation as at 31 March 2022 is currently in progress and the Company has appointed BDO UK LLP to advise the Chamberlin Board. The Company is seeking to ensure that current market conditions, the Group's improved covenant strength and the significant one-off payment of GBP0.6 million made in May 2022 from the RDC property sale and leaseback, are fully reflected in the new deficit valuation and any subsequent recovery plan payments required by the Company. This gives the Board confidence of a positive outcome and the ability to ensure that any ongoing deficit is minimised.

Enquiries:

 
  Chamberlin plc                                 T: 01922 707100 
    Kevin Price, Chief Executive 
    Alan Tomlinson, Finance Director 
   Cenkos Securities plc (Nominated Adviser       T: 020 7397 8900 
    and Broker) 
    Katy Birkin 
    Stephen Keys 
    George Lawson 
   Peterhouse Capital Limited (Joint Broker)      T: 020 7469 0930 
    Lucy Williams 
    Duncan Vasey 
 

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END

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(END) Dow Jones Newswires

December 16, 2022 08:49 ET (13:49 GMT)

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