TIDMCMH
RNS Number : 2109R
Chamberlin PLC
28 February 2023
28 February 20 23
AIM: CMH
CHAMBERLIN PLC
("Chamberlin" or "the Company" or "the Group")
Interim Results
for the six months ended 30 November 2022
Chamberlin plc (AIM: CMH) is pleased to announce its interim
results for the six months ended 30 November 2022 ("H1 2023").
Key Points
-- Revenue of GBP10.5m (H1 2022: GBP8.0m), an increase of 32%
-- Underlying loss before tax GBP0.3m (H1 2022: GBP0.1m)
-- Continued strong growth at Petrel with significantly improved operating performance
Post Period
-- Potential sale and leaseback for Walsall freehold site, subject to contract
Chairman, Keith Butler-Wheelhouse, commented:
"All operating businesses within the Group are now operationally
profitable, with new opportunities for growth continuing to emerge,
the most significant being the newly reinvigorated Petrel".
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
Enquiries
Chamberlin plc T: 01922 707100
Kevin Price, Chief Executive Officer
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
Chairman's Statement
Revenues in the first six months increased by 32% to GBP10.5m
compared to GBP8.0m in the prior period, reflecting strong growth
across all operations. Revenues in the second half of the year are
expected to continue on a similar path, supported by strong order
books at RDC and Petrel and the commencement of new contracts
recently won by CHC, as previously announced.
Operational performance of the Group in H1 2023 was impacted by
inflationary cost pressures, primarily at CHC, with the underlying
loss before tax increasing slightly to GBP0.3m (H1 2022: GBP0.1m),
although these cost pressures have now been addressed through price
increases and further cost savings. Despite these cost pressures,
both Petrel and RDC delivered strong operating performances, with
operating profit increasing by 78% and 11% respectively, compared
with the prior period.
Petrel's new management team, led by divisional Managing
Director Mark Pemberton, has overseen a substantial increase in
operating performance. The team are now seeking to build on this
strong base and have developed a strategy for Petrel that will
involve entry into new export markets and sectors such as
pharmaceutical and oil and gas. Petrel will continue to modernise
and innovate to ensure it remains at the forefront of hazard
lighting technology and meets evolving customer requirements.
In January 2023, Chamberlin completed a placing and subscription
raising GBP650,000 to support the Group's working capital
requirements as it enters a period of profitable growth. At that
time, the Board stated that it was continuing to evaluate further
opportunities to strengthen the balance sheet, including in
relation to the Group's property assets. The Group is in
discussions regarding a proposed sale and leaseback transaction at
its Walsall freehold property which would include a proportion of
any realised funds to be utilised to further reduce the Company's
pension fund deficit. Whilst the freehold is currently under offer
at GBP2.2m, Shareholders should note that this is subject to
contract and there can be no certainty that this transaction will
be completed. Further announcements will be made, as
appropriate.
Outlook
The Group continues to go from strength to strength and is
performing in line with market expectations.
The Board believes that Chamberlin is now entering a period of
continuous growth with all businesses profitable in January 2023
for the first time in many years and supporting the Board's
expectations that Group profits in FY 2023 will be second half
weighted.
Keith Butler-Wheelhouse
Chairman
Consolidated Income Statement
for the six months ended 30 November 2022
Unaudited Unaudited
six months ended six months ended Year ended
Note 30 November 2022 30 November 2021 31 May 2022
# # #
Underlying Non-underlying Total Underlying Non-underlying Total Underlying Non-underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2 10,544 - 10,544 8,013 - 8,013 16,836 - 16,836
Cost of sales (9,104) - (9,104) (6,636) - (6,636) (15,038) - (15,038)
Gross profit 1,440 - 1,440 1,377 - 1,377 1,798 - 1,798
Other operating
expenses 7 (1,583) (140) (1,723) (1,409) 50 (1,359) (2,501) 505 (1,996)
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Operating
(loss)/profit (143) (140) (283) (32) 50 18 (703) 505 (198)
Interest receivable 47 - 47 - - - 26 - 26
Finance costs 3 (231) - (231) (104) - (104) (337) - (337)
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
(Loss)/profit
before tax (327) (140) (467) (136) 50 (86) (1,014) 505 (509)
Tax credit/(expense) 4 186 - 186 188 - 188 581 - 581
----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Profit/(loss)
for the period
attributable
to equity holders
of the Parent
Company (141) (140) (281) 52 50 102 (433) 505 72
---- ----------- --------------- ------------ ----------- --------------- --------- ----------- --------------- -------------
Earnings/(loss)
per share:
Basic 5 (0.1)p (0.2)p (0.3)p 0.1p - 0.1p (0.5)p 0.6p 0.1p
Diluted (0.1)p (0.2)p (0.3)p 0.1p - 0.1p (0.5)p 0.6p 0.1p
(#) Non-underlying items include restructuring costs, hedge
ineffectiveness, impairment of assets, dilapidation costs and
share-based payment costs together with the associated tax
impact.
Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2022
Unaudited
six months Unaudited
ended six months ended Year ended
30 November 30 November 31 May
2022 2021 2022
GBP000 GBP000 GBP000
(Loss)/profit for the
period (281) 102 72
-------------- ------------------- -------------
Other comprehensive
income
Gain on revaluation
of property, plant
& equipment - - 1,003
Movements in fair value
of cash flow hedges
taken to other comprehensive
income 3 (69) (158)
Deferred tax on movements
in cash flow hedges (1) 17 40
-------------- ------------------- -------------
Net other comprehensive
income/(expense) that
may be recycled to
profit and loss 2 (52) 885
-------------- ------------------- -------------
Re-measurement (losses)/gains
on pension scheme assets
and liabilities (880) (42) 332
Deferred tax on re-measurement
(losses)/ gains on
pension assets and
liabilities 167 8 (63)
Net other comprehensive
(expense)/ income that
will not be reclassified
to profit and loss (713) (34) 269
-------------- ------------------- -------------
Other comprehensive
(expense)/income for
the period net of tax (711) (86) 1,154
Total comprehensive
(expense)/income for
the period attributable
to equity holders of
the Parent Company (992) 16 1,226
============== =================== =============
Consolidated Balance Sheet
at 30 November 2022
Unaudited Unaudited
30 November 30 November 31 May
2022 2021 2022
GBP000 GBP000 GBP000
Non-current assets
Property, plant and
equipment 3,525 2,515 3,506
Intangible assets 263 244 283
Deferred tax assets 1,621 1,402 1,434
Defined benefit pension
scheme surplus - - 64
-------------- -------------- ---------
5,409 4,161 5,287
-------------- -------------- ---------
Current assets
Inventories 3,449 2,264 3,143
Trade and other receivables 4,955 3,160 4,303
Cash at bank 124 6 -
8,528 5,430 7,446
-------------- -------------- ---------
Total assets 13,937 9,591 12,733
============== ============== =========
Current liabilities
Financial liabilities 3,873 2,573 2,877
Trade and other payables 7,281 6,429 6,475
11,154 9,002 9,352
-------------- -------------- ---------
Non-current liabilities
Financial liabilities 1,814 1,007 2,097
Deferred tax liabilities 60 107 70
Provisions 806 890 806
Defined benefit pension
scheme deficit 634 1,077 -
3,314 3,081 2,973
Total liabilities 14,468 12,083 12,325
-------------- -------------- ---------
Capital and reserves
Share capital 2,088 2,051 2,087
Share premium 6,332 4,720 6,308
Capital redemption
reserve 109 109 109
Revaluation reserve 1,003 - 1,003
Hedging reserve 102 166 100
Retained earnings (10,165) (9,538) (9,199)
-------------- -------------- ---------
Total equity (531) (2,492) 408
-------------- -------------- ---------
Total equity and liabilities 13,937 9,591 12,733
============== ============== =========
Consolidated Cash Flow Statement
for the six months ended 30 November 2022
Unaudited Unaudited
six months six months
ended ended Year ended
30 November 30 November 31 May
2022 2021 2022
GBP000 GBP000 GBP000
Operating activities
Loss for the period before
tax (467) (86) (509)
Adjustments for:
Interest receivable (47) - (26)
Net finance costs 231 104 337
Impairment charge on property,
plant and equipment, inventory
and receivables - (84) (498)
Dilapidations provision - - (84)
Depreciation of property,
plant and equipment 186 176 324
Amortisation of intangible
assets 20 23 24
Profit on disposal of
property plant and equipment - - (66)
Foreign exchange rate
movements (6) (1) (1)
Share-based payments 34 34 67
Defined benefit pension
contributions paid (180) (165) (935)
(Increase) in inventories (307) (566) (945)
(Increase)/decrease in
receivables (796) 779 (168)
Increase/(decrease) in
payables 830 (1,688) (1,557)
Corporation tax received 306 - -
-------------- -------------- ------------
Net cash outflow from
operating activities (196) (1,474) (4,037)
-------------- -------------- ------------
Investing activities
Purchase of property,
plant and equipment (205) (197) (520)
Purchase of software - (4) (20)
Development costs - - (24)
Disposal of property,
plant and equipment - - 1,189
Net cash outflow from
investing activities (205) (201) 625
-------------- -------------- ------------
Financing activities
Interest received 47 - 26
Interest paid (233) (94) (324)
Net invoice finance drawdown 1,048 1,011 1,585
New share capital issued - - 1,624
Finance lease payments (337) (274) (537)
Net cash inflow from
financing activities 525 643 2,374
-------------- -------------- ------------
Net increase/(decrease)
in cash and cash equivalents 124 (1,032) (1,038)
Cash and cash equivalents
at the start of the period
Impact of foreign exchange - 1,038 1,038
rate movements - - -
Cash and cash equivalents
at the end of the period 124 6 -
============== ============== ============
Cash and cash equivalents
compromise:
Cash at bank 124 6 -
============== ============== ============
Consolidated Statement of Changes in Equity
for the six months ended 30 November 2022
Capital
Share Share redemption Hedging Revaluation Retained Total
capital premium reserve reserve reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 June 2021 2,051 4,720 109 218 - (9,664) (2,566)
Profit for the
period - - - - - 102 102
Other
comprehensive
income/(expense)
for the period
net of tax - - - (52) - (34) (86)
------------ ------------ ------------- ---------- -------------- ----------- -------------
Total
comprehensive
income/(expense) - - - (52) - 68 16
Share-based
payments - - - - - 34 34
Deferred tax on
share-based
payments - - - - - 24 24
Total of
transactions
with
shareholders - - - - - 58 58
At 30 November
2021 2,051 4,720 109 166 - (9,538) (2,492)
Loss for the
period - - - - (30) (30)
Other
comprehensive
income for the
period net of
tax - - - (66) 1,003 303 1,240
------------ ------------ ------------- ---------- -------------- ----------- -------------
Total
comprehensive
income/(expense) - - - (66) 1,003 273 1,210
New share capital
issued 36 1,588 - - - - 1,624
Share-based
payments - - - - - 33 33
Deferred tax on
share-based
payments - - - - - 33 33
------------ ------------ ------------- ---------- -------------- ----------- -------------
Total of
transactions
with
shareholders 36 1,588 - - - 66 1,690
At 1 June 2022 2,087 6,308 109 100 1,003 (9,199) 408
Loss for the
period - - - - - (281) (281)
Other
comprehensive
expense for the
period net of
tax - - - 2 - (713) (711)
Total
comprehensive
(expense)/income - - - 2 - (994) (992)
New share capital
issued 1 24 - - - - 25
Share-based
payments - - - - 34 34
Deferred tax on
share-based
payments - - - - (6) (6)
Total of
transactions
with
shareholders 1 24 - - - 28 53
At 30 November
2022 2,088 6,332 109 102 1,003 (10,165) (531)
============ ============ ============= ========== ============== =========== =============
Notes to the Interim Financial statements
1 General information and accounting policies
The unaudited interim condensed consolidated financial
statements do not comprise the Group's statutory accounts as
defined by section 434 of the Companies Act 2006. Statutory
accounts for the year ended 31 May 2022 were approved by the Board
of Directors on 4 November 2022 and filed at Companies House. The
auditor's report on those accounts was unqualified but contained an
emphasis of matter paragraph relating to a material uncertainty
regarding going concern.
Basis of preparation
The Group's financial statements have been prepared in
accordance with International Accounting Standards in conformity
with the requirements of the Companies Act 2006.
The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with
AIM Rules issued by the London Stock Exchange.
Accounting policies
The principal accounting policies applied in preparing the
interim Financial Statements comply with IFRS as adopted by the
European Union and are consistent with the policies set out in the
Annual Report and Accounts for the year ended 31 May 2022.
No new standards or interpretations issued since 31 May 2022
have had a material impact on the financial statements of the
Group.
Going concern
The Director's assessment of going concern is based on the
Group's detailed forecast for the three years ending 31 May 2023,
31 May 2024 and 31 May 2025, which reflect the Director's view of
the most likely trading conditions. In November 2022, the Group
secured an increase to its invoice finance facilities from GBP3.5m
to GBP4.5m and the forecasts indicate that these bank facilities
are expected to remain adequate.
The forecasts include revenue growth and margin improvement
assumptions across all of the Group's businesses. At Chamberlin and
Hill Castings, these assumptions include an improvement in
automotive volumes as this sector recovers from the backlog of
passenger vehicle orders arising from the shortage of vital
electronic and other components in the last 18 months, modest
growth from fitness equipment and cookware products and
diversification into new markets. At RDC, the forecasts assume that
revenue and margin growth will be achieved from the investment
being made in the expansion of its capacity and the ability to
manufacture and sell a wider range of products using new materials.
At Petrel, revenue and margin growth assumptions are based on the
introduction of new products, including the use of new technology,
and services, including warranty, inspection and maintenance.
The Directors have applied reasonably foreseeable downside
sensitivities to the forecast, including sales growth and margin
improvement at Chamberlin and Hill Castings is 40% and 20% lower
than expectations respectively, sales growth and margin improvement
at RDC are both 20% lower than expectations and sales growth and
margin at Petrel are 20% and 10% lower than expectations
respectively. Furthermore, the Group is reliant on an invoice
finance facility to fund its working capital needs. The renewal of
the facility at the next annual review in March 2023 cannot be
guaranteed, although there are no indications at the date of the
approval of the financial statements that a renewal with the
existing provider would not be granted or that alternative
providers could not be found. In addition, the Directors have
assumed that deferred settlement terms will be agreed with HMRC in
relation to PAYE arrears of GBP1.5m for one subsidiary in the Group
that have arisen in the period since the announcement by
BorgWarner, having already agreed deferred settlement terms with
HMRC for two subsidiaries.
As a consequence, after making enquiries, the Directors have an
expectation that, in the circumstances of the reasonably
foreseeable downside scenarios described above, the Group and
Company have adequate resources to continue in operational
existence for the foreseeable future.
However, the rate at which revenue growth and margin improvement
can be achieved during a potentially future recessionary period and
uncertain global trading conditions is difficult to predict.
Furthermore, the ability to renew or source alternative invoice
finance facilities or to agree deferred settlement terms with HMRC
results in material uncertainty, which may cast significant doubt
over the ability of the Group and the Company to realise its assets
and discharge its liabilities in the normal course of business and
hence continue as a going concern.
The Directors continue to adopt the going concern basis, whilst
recognising there is material uncertainty relating to the above
matters.
2 Segmental analysis
For management purposes, the Group is organised into two
operating divisions: Foundries and Engineering. The operating
segments reporting format reflects the Group's management and
internal reporting structures for the Chief Operating Decision
Maker.
Revenue Operating (loss)/ profit
Unaudited Unaudited Unaudited Unaudited
six months six months Year six months six months
ended ended ended ended ended Year ended
30 November 30 November 31 May 30 November 30 November 31 May
2022 2021 2022 2022 2021 2022
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Foundries 8,600 6,469 13,604 (9) 120 (463)
Engineering 1,944 1,544 3,232 343 193 535
-------------- -------------- ---------- -------------- -------------- --------------
Segmental results 10,544 8,013 16,836 334 313 72
-------------- -------------- ----------
Shared costs (477) (345) (775)
Non-underlying
items (Note
7) (140) 50 505
Net finance
costs (184) (104) (311)
Loss before
tax (467) (86) (509)
============== ============== ==============
The Foundries segment is a supplier of iron castings, in raw or
machined form, to a variety of industrial customers who incorporate
the castings into their own products or carry out further machining
or assembly operations on the castings before selling them on. The
Engineering segment provides manufactured hazardous area lighting
products to distributors and end-users.
Financing and income tax are managed on a Group basis and are
not allocated to operating segments.
3 Finance costs
Unaudited Unaudited
six months six months
ended ended Year ended
30 November 30 November 31 May
2022 2021 2022
GBP000 GBP000 GBP000
Interest on bank financing facilities (132) (23) (94)
Interest expense on lease liabilities
and other interest payable (101) (71) (230)
Net interest on defined benefit pension
liability 2 (10) (13)
-------------- -------------- ------------
(231) (104) (337)
============== ============== ============
4 Income tax expense
An estimated effective rate of tax for the six months to 30
November 2022 of 39.8% (30 November 2021: 218.6%) has been used in
these interim statements. This rate differs to the standard
corporation tax rate of 19% due primarily due to the recognition of
a deferred tax asset on certain trading losses, accelerated capital
allowances and short-term timing differences. The corporation tax
rate remained at 19% for the year ended 31 May 2022.
5 Earnings/(loss) per share
The calculation of earnings/(loss) per share is based on the
profit/(loss) attributable to shareholders and the weighted average
number of ordinary shares in issue. In calculating the diluted loss
per share, adjustment has been made for the dilutive effect of
outstanding share options where applicable. Underlying
earnings/(loss) per share, which excludes non-underlying items and
the related tax thereon as disclosed in Note 7, as analysed below,
has been disclosed as the Directors believe this allows a better
assessment of the underlying trading performance of the Group.
Unaudited Unaudited Year ended
six months six months 31 May
ended ended 2022
30 November 30 November
2022 2021
GBP000 GBP000 GBP000
(Loss)/profit after tax for
basic earnings per share (281) 102 72
Non-underlying operating items 140 (50) (505)
Taxation effect of the above - - -
-------------- -------------- ------------
(Loss)/profit for underlying
earnings per share (141) 52 (433)
-------------- -------------- ------------
Unaudited Unaudited Year ended
six months six months 31 May
ended ended 2022
30 November 30 November
2022 2021
000 000 000
Weighted average number of
ordinary shares 105,625 69,625 79,488
Adjustment to reflect dilutive
shares under option 3,581 3,581 3,581
---------------- ---------------- --------------
Diluted weighted average number
of ordinary shares 109,206 73,206 83,069
---------------- ---------------- --------------
There is no adjustment for the shares under option in the
diluted loss per share calculation for the six months ended 30
November 2022 as they are required to be excluded from the weighted
average number of shares as they are anti-dilutive.
6 Pensions
The Group operates a defined benefit pension scheme and a
defined contribution pension scheme on behalf of its employees. For
the defined contribution scheme, contributions paid in the period
are charged to the income statement. For the defined benefit
scheme, actuarial calculations are performed in accordance with IAS
19 in order to arrive at the amounts to be charged in the income
statement and recognised in the statement of comprehensive income.
The defined benefit scheme is closed to new entrants and future
accrual.
Under IAS 19, the Group recognises all movements in the
actuarial funding position of the scheme in each period. This is
likely to lead to volatility in shareholders' equity from period to
period.
The IAS 19 figures are based on a number of actuarial
assumptions as set out below, which the actuaries have confirmed
they consider appropriate. The projected unit credit actuarial cost
method has been used in the actuarial calculations.
30 November 30 November 31 May
2022 2021 2022
Salary increases n/a n/a n/a
Pension increases (post 1997) 3.1% 3.2% 3.4%
Discount rate 4.5% 1.6% 3.4%
Inflation assumption - RPI 3.1% 3.3% 3.5%
Inflation assumption - CPI 2.4% 2.6% 2.8%
The demographic assumptions used for 30 November 2022 were the
same as those used at 31 May 2022, and were based on the last full
actuarial valuation performed as at 31 March 2019. The
contributions expected to be paid during the year to 31 May 2023
are GBP362,000. The triennial valuation as at 31 March 2022 is
currently in progress.
The defined benefit scheme funding has changed under IAS 19 as
follows:
Unaudited Unaudited
30 November 30 November 31 May
Funding status 2022 2021 2022
GBP000 GBP000 GBP000
Scheme assets at end of period 11,924 16,156 14,024
Benefit obligations at end
of period (12,558) (17,233) (13,960)
------------------------ -------------------------- ----------
(Deficit)/surplus in scheme (634) (1,077) 64
Related deferred tax asset/(liability) 159 269 (16)
------------------------ -------------------------- ----------
Net pension (liability)/asset (475) (808) 48
======================== ========================== ==========
The change in the net pension liability since 31 May 2022 is
mainly due to negative investment returns arising from a fall in
the market value of scheme assets partially offset by a reduction
in the value of liabilities as a consequence of an increase in bond
yields increasing the discount rate.
7 Non-underlying items
Unaudited Unaudited Year ended
six months six months 31 May
ended ended 2022
30 November 30 November
2022 2021
GBP000 GBP000 GBP000
Group reorganisation 106 - -
Additional liability from customer
claim relating to disposal of
Exidor Limited - - 10
Impairment reversal relating
to inventory and receivables - (84) (498)
Dilapidations provision release - - (84)
Share-based payment charge 34 34 67
-------------- -------------- ------------
Non-underlying operating costs/(income) 140 (50) (505)
Taxation
- tax effect of non-underlying - - -
costs
140 (50) (505)
============== ============== ==============
In the six months ended 30 November 2022, the Group undertook a
restructure of the senior management team at Petrel leading to
redundancy and other associated costs of GBP106,000.
8 Net debt
Unaudited Unaudited
30 November 30 November 31 May
2022 2021 2022
GBP000 GBP000 GBP000
Financial liabilities
Net cash (124) (6) -
Lease liabilities 580 1,065 634
Invoice finance liability 3,293 1,508 2,243
-------------- -------------- ----------
Net debt due in less than one
year 3,749 2,567 2,877
-------------- -------------- ----------
Lease liabilities due in more
than one year 1,814 1,007 2,097
Net debt 5,563 3,574 4,974
============== ============== ==========
9 Interim report
This interim results statement is available on the Group's
website, www.chamberlin.co.uk.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR TRMPTMTJTBIJ
(END) Dow Jones Newswires
February 28, 2023 02:00 ET (07:00 GMT)
Chamberlin (LSE:CMH)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Chamberlin (LSE:CMH)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
