TIDMCMH
RNS Number : 3522Q
Chamberlin PLC
29 November 2016
29 November 2016
AIM: CMH
CHAMBERLIN PLC
("Chamberlin" or "the Company" or "the Group")
Half Year Results
For the six months to 30 September 2016
Key Points
-- H1 results in line with management expectations - Group
remains on track to achieve market expectations for the full
year
-- Revenues of GBP16.4m (2015: GBP18.0m) - with the reduction mainly in the Leicester foundry
-- Gross margin percentage increased to 19.9% (2015: 17.5%)
-- Underlying profit before tax of GBP8,000 (2015: GBP57,000)
Statutory loss after tax was GBP391,000 (2015: loss of
GBP367,000)
-- Underlying basic loss per share was 0.9p (2015: earnings per share of 0.2p)
Statutory basic loss per share was 4.9p (2015: loss of 4.6p)
-- Major strategic investment of GBP3.8m in machining capability commenced:
o will support ongoing capacity utilisation at flagship foundry
in Walsall
o will generate incremental sales from January 2017
-- Walsall foundry promoted in June to "Category A" supplier by
major customer, IHI Europe Ltd:
o one of only two suppliers to IHI Europe Ltd to hold this
status
o opens up new opportunities
-- Engineering division revenues increase by 8.2%. Order intake increase by 17%
-- Post period, decision taken to commence orderly wind-down and
closure of non-core Leicester foundry
-- Board remains confident about upwards momentum in business performance
o underpinned by major new contracts entering production at
Walsall foundry
Chairman, Keith Butler-Wheelhouse, commented:
"Results for the first half are in line with management
expectations and reflect the anticipated picture across our foundry
activities.
We recently took the difficult decision to close our non-core
foundry at Leicester, the least specialised of the Group's three
foundries, which has been suffering from reducing demand. We are
now close to completing our initial investment in new machining
capability at Walsall, which is opening up additional opportunities
and underlines Walsall's ability to deliver a world class product
at a globally competitive cost.
Looking ahead, we believe that the Group remains well placed to
achieve existing market expectations of underlying profitability
for the financial year. We also remain very encouraged about
prospects for an upward trajectory in performance, underpinned by
the major contract wins at Walsall which will enter production in
January 2017.
We look forward to providing a further update on progress in due
course."
Enquiries
Chamberlin plc T: 020 3178 6378 (today)
Kevin Nolan, Chief Executive / 01922 707100
David Roberts, Finance
Director
Panmure Gordon T: 020 7886 2500
(Nominated Adviser and
Broker)
Adam James, Peter Steel
KTZ Communications T: 020 3178 6378
(Financial PR)
Katie Tzouliadis, Viktoria
Langley, Emma Pearson
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
CHAIRMAN'S STATEMENT
Introduction
The Group's first half performance is in line with management
expectations and, like last year, we anticipate that Chamberlin's
overall full year performance will be strongly weighted towards the
second half of the financial year. The underlying trading picture
shows an ongoing and material improvement in profitability at our
Walsall foundry which continues to underpin overall results from
our foundries division. We expect the Walsall foundry to continue
to make further progress, supported by our investment in new
machining capability, and view prospects very positively. Revenues
from the Group's engineering operations are growing as we focus on
the technical development of our product and exports.
As recently announced, regretfully we have taken the difficult
decision to wind-down and close our foundry at Leicester. Demand at
this foundry, whose area of activity is the least specialised, has
been subdued for many years and it is clear that production is no
longer economically viable. We expect operations at Leicester to
cease by the end of the year and, as reported previously, its
closure is not expected to impact existing market forecasts for the
Group's underlying profit before tax for the year.
The construction of the new machining facility to support our
foundry activities continues to plan, and the new facility will be
operational in January 2017. This initiative is an exciting
development which we expect will open up significant new long term
growth opportunities, with Walsall positioned as the only fully
integrated supplier of grey iron bearing housings in Europe.
Results
The Group generated revenues of GBP16.4m for the six months to
30 September 2016 (2015: GBP18.0m), with the Leicester foundry
accounting for GBP1.4m of the GBP1.6m reduction.
Approximately 40% of Group sales are denominated in Euros, which
were transacted at an average rate of EUR1.31 over the six months
to 30 September 2016 (2015: EUR1.34). This has contributed GBP0.1m
to Group revenues and profits. As the pre-Brexit hedges unwind, we
expect revenue in the second half will benefit from the current
weak Sterling.
The Group's gross margin percentage has increased by over two
percentage points to 19.9% or GBP3.3m (2015: 17.5% and GBP3.2m).
This reflected both the favourable currency impact and cost
reduction, with restructuring costs of GBP0.2m incurred during the
period.
As expected, underlying profit before tax was GBP8,000 (2015:
GBP57,000) and the underlying basic loss after tax per share was
0.9p (2015: earnings of 0.2p).
On a statutory basis the Group generated a loss of GBP0.4m
(2015: loss of GBP0.4m). This is after restructuring costs of
GBP0.2m (2015: GBP0.3m) and administration and finance costs on the
closed pension schemes of GBP0.2m (2015: GBP0.2m). The diluted loss
per share was 4.9p (2015: loss of 4.6p).
The net debt position at 30 September 2016 was GBP5.3m (30
September 2015: GBP4.3m and 31 March 2016: GBP3.2m). The Group has
debt facilities of GBP8.6m. We invested GBP0.7m in the construction
of the Group's new machining facility, which was funded through
asset finance.
Operations
The three foundries at Walsall, Leicester and Scunthorpe
generated total revenues of GBP11.3m over the half year (2015:
GBP13.3m), with 70% (or GBP1.4m) of the year-on-year decrease
reflecting the contraction in sales at the Leicester foundry.
Despite this, the operating profit contribution from our foundry
activities was 15% higher than last year at GBP0.4m (2015:
GBP0.3m), which reflected continuing progress at Walsall. Gross
operating margins increased to 3.1% from 2.3%, helped by our focus
on continuous improvement and cost reductions.
As expected, revenues at the Walsall foundry, which produces
small castings with complex internal geometry, decreased by 4.9% as
the legacy turbo charger bearing housing work entered its final
phase of life cycle. However, the major new contracts, announced in
late 2015, for turbo charger bearing housings for diesel engines in
passenger cars, will enter production in the second half of the
financial year, with volumes expected to increase significantly in
2017.
As we have announced previously, we are investing in a machining
capability for Walsall and the construction of the new facility is
on track. The new facility will generate incremental sales from
January 2017 onwards. We remain especially excited about the
additional opportunities this new capability will open up for us
over the medium term.
In June the Walsall foundry was promoted to 'Category A'
supplier status by one of its major customers, IHI Europe Ltd,
which provides charging systems in the European turbocharger
sector. The foundry's promotion to this categorisation is
significant because it means that Chamberlin will now be
automatically included in quoting for all future bearing housing
opportunities at IHI Europe Ltd. It is one of only two suppliers
which holds this status.
The Scunthorpe foundry, which produces heavy castings, has been
impacted by adverse trading conditions in the power, construction
and mining sectors, and revenues were 8.6% lower year-on-year. We
have implemented cost base reductions and have also continued to
make operational improvements together with price increases. These
measures moved the foundry back into profitability.
The foundry at Leicester, which produces medium castings,
continued to be affected by its lack of specialisation and its
relative inability to compete against low cost countries. Revenues
in the first half decreased by 43.5% year-on-year and it is with
regret that we have concluded it is no longer economically viable.
An orderly wind-down is now underway and will be completed by the
end of 2016.
In the financial year to 31 March 2016, the Leicester foundry
contributed sales of GBP5.9m of sales and an underlying profit
before tax of GBP420,000. In the first half of the current
financial year, Leicester contributed sales of approximately
GBP1.8m and an underlying profit before tax of approximately
GBP46,000.
The engineering division, which comprises Exidor, the UK market
leader in panic and emergency exit door hardware, and Petrel, which
manufactures lighting and control equipment for use in hazardous
areas, saw revenues increase by 8.2% to GBP5.1m (2015: GBP4.7m).
The operating profit contribution was broadly flat at GBP0.3m
(2015: GBP0.3m). Petrel is continuing to further extend its product
range into LEDs and our focus at both Petrel and Exidor is on
increasing export sales, with both businesses competitive against
European suppliers. As a result order intake for the first half was
up 16.6% at Exidor and 18.8% at Petrel.
Outlook
Looking ahead, we believe that the Group remains well placed to
achieve existing market expectations of underlying profitability
for the financial year. We also remain very encouraged about
prospects for an upward trajectory in performance, underpinned by
the major contract wins at Walsall which should enter production in
2017.
The completion of new machining capability at Walsall will mark
an important milestone for the foundry, which has undergone a
period of significant transformation as we have upgraded and
improved processes. We believe it opens up new opportunities and
underlines Chamberlin's ability to deliver world class product on a
globally competitive basis.
We look forward to providing a further update on progress in due
course.
Keith Butler-Wheelhouse
Chairman
28 November 2016
Consolidated Income Statement
for the six months ended 30 September 2016
Unaudited Unaudited
six months ended six months ended
30 September 30 September Year ended
Note 2016 2015 31 March 2016
--------------------------------------- -------------------------- ------------
# # #
Underlying Non-underlying Total Underlying Non-underlying Total Underlying Non-underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 16,446 - 16,446 18,039 - 18,039 34,988 - 34,988
Cost of sales (13,172) - (13,172) (14,879) - (14,879) (27,657) - (27,657)
Gross profit 3,274 - 3,274 3,160 - 3,160 7,331 - 7,331
Other operating
expenses 7 (3,172) (316) (3,488) (3,011) (412) (3,423) (6,501) (746) (7,247)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
Operating
profit/(loss) 102 (316) (214) 149 (412) (263) 830 (746) 84
Finance costs 3 (94) (80) (174) (92) (71) (163) (178) (142) (320)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
Profit/(loss)
before tax 8 (396) (388) 57 (483) (426) 652 (888) (236)
Tax
(expense)/credit 4 (82) 79 (3) (38) 97 59 (202) 177 (25)
---------- -------------- ----------- ---------- -------------- --------- ---------- -------------- ------------
(Loss)/ profit
for the period
from continuing
operations
attributable
to equity
holders
of the Parent
Company (74) (317) (391) 19 (386) (367) 450 (711) (261)
========== ============== =========== ========== ============== ========= ========== ============== ============
(Loss)/ earnings
per share:
Basic 5 (4.9)p (4.6)p (3.3)p
Underlying 5 (0.9)p 0.2p 5.7p
Diluted 5 (4.9)p (4.6)p (3.3)p
Diluted
underlying 5 (0.9)p 0.2p 5.5p
(#) Non- underlying items represent exceptional costs as
disclosed in note 7, administration costs of the pension scheme and
net financing costs on pension obligations, share based payment
costs and associated tax impact of these items.
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2016
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
GBP000 GBP000 GBP000
Loss for the period (391) (367) (261)
Other comprehensive
income
Reclassification
for cash flow
hedges included
in sales (593) (183) (419)
Movements in fair
value on cash
flow hedges taken
to other comprehensive
income 253 (59) (193)
Deferred tax on
movements in cash
flow hedges 61 48 123
Movement on deferred
tax relating to
rate change - - (9)
-------------- -------------- ------------
Net other comprehensive
expense that may
be recycled to
profit and loss (279) (194) (498)
Re-measurement
(losses)/ gains
on pension assets
and liabilities (2,538) 74 (254)
Deferred/ current
tax on re-measurement
(losses)/ gains
on pension assets
and liabilities 507 (15) 51
Movement on deferred
tax on measurement
losses relating
to rate change - - (93)
-------------- -------------- ------------
Net other comprehensive
(expense)/income
that will not
be reclassified
to profit and
loss (2,031) 59 (296)
-------------- -------------- ------------
Other comprehensive
expense for the
period net of
tax (2,310) (135) (794)
Total comprehensive
expense for the
period attributable
to equity holders
of the Parent
Company (2,701) (502) (1,055)
============== ============== ============
Consolidated Balance Sheet
At 30 September 2016
Unaudited Unaudited
30 September 30 September 31 March
2016 2015 2016
GBP000 GBP000 GBP000
Non-current assets
Property, plant
and equipment 8,878 8,423 8,112
Intangible assets 402 397 387
Deferred tax
assets 1,936 1,436 1,370
-------------- -------------- ---------
11,216 10,256 9,869
Current assets
Inventories 3,165 3,480 2,899
Trade and other
receivables 7,047 6,889 6,195
10,212 10,369 9,094
-------------- -------------- ---------
Total assets 21,428 20,625 18,963
============== ============== =========
Current liabilities
Financial liabilities 4,484 3,987 2,941
Trade and other
payables 6,262 5,975 5,727
10,746 9,962 8,668
-------------- -------------- ---------
Non-current liabilities
Financial liabilities 823 348 251
Deferred tax
liabilities 59 66 59
Provisions 200 200 200
Defined benefit
pension scheme
deficit 7,182 4,417 4,692
8,264 5,031 5,202
Total liabilities 19,010 14,993 13,870
-------------- -------------- ---------
Capital and reserves
Share capital 1,990 1,990 1,990
Share premium 1,269 1,269 1,269
Capital redemption
reserve 109 109 109
Hedging reserve (622) (39) (343)
Retained earnings (328) 2,303 2,068
-------------- -------------- ---------
Total equity 2,418 5,632 5,093
-------------- -------------- ---------
Total equity and
liabilities 21,428 20,625 18,963
============== ============== =========
Consolidated Cash Flow Statement
for the six months ended 30 September 2016
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
GBP000 GBP000 GBP000
Operating activities
Loss for the period
before tax (388) (426) (236)
Adjustments for:
Net finance costs
excluding pensions 94 92 178
Depreciation of property,
plant and equipment 616 589 1,235
Amortisation of software 35 59 97
Amortisation of development
costs 4 5 11
Profit on disposal
of property plant
and equipment - (8) (12)
Share based payments 26 26 53
Difference between
pension contributions
paid and amounts
recognised in the
Income Statement (48) (53) (106)
(Increase)/ decrease
in inventories (266) 526 1,107
(Increase)/ decrease
in receivables (852) 735 1,421
Increase/ (decrease)
in payables 194 (882) (1,493)
Cash (outflow)/ inflow
from operations (585) 663 2,255
Income taxes received - - 1
Net cash (outflow)/
inflow from operating
activities (585) 663 2,256
Investing activities
Purchase of property,
plant and equipment (1,392) (1,125) (1,468)
Purchase of software (2) (9) (31)
Development costs (52) - (12)
Disposal of property,
plant and equipment 10 21 33
-------------- -------------- -----------
Net cash outflow
from investing activities (1,436) (1,113) (1,478)
Financing activities
Interest paid (94) (92) (178)
Repayment of asset
loans (100) (100) (200)
Net invoice finance
drawdown 1,460 484 (319)
Finance leases taken
out 672 71 84
Net cash inflow/(outflow)
from financing activities 1,938 363 (613)
-------------- -------------- -----------
Net (decrease)/ increase
in cash and cash
equivalents (83) (87) 165
Cash and cash equivalents
at the start of the
period (126) (291) (291)
-------------- -------------- -----------
Cash and cash equivalents
at the end of the
period (209) (378) (126)
============== ============== ===========
Cash and cash equivalents
compromise:
(Overdraft)/ cash
at bank (209) (378) (126)
============== ============== ===========
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2016
Attributable
to equity
Capital holders
Share Share redemption Hedging Retained of the
capital premium reserve reserve earnings parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2015 1,990 1,269 109 155 2,586 6,109
Loss for the
period - - - - (367) (367)
Other comprehensive
(expense)/ income
for the period
net of tax - - - (194) 59 (135)
--------- --------- ------------ --------- ----------- --------------
Total comprehensive
expense - - - (194) (308) (502)
Share based payments - - - - 26 26
Deferred tax
on employee share
options - - - - (1) (1)
--------- --------- ------------ --------- ----------- --------------
Total of transactions
with shareholders - - - - 25 25
At 30 September
2015 1,990 1,269 109 (39) 2,303 5,632
Profit for the
period - - - - 106 106
Other comprehensive
expense for the
period net of
tax - - - (304) (355) (659)
--------- --------- ------------ --------- ----------- --------------
Total comprehensive
expense - - - (304) (249) (553)
Share based payments - - - - 27 27
Deferred tax
on employee share
options - - - - (13) (13)
--------- --------- ------------ --------- ----------- --------------
Total of transactions
with shareholders - - - - 14 14
At 1 April 2016 1,990 1,269 109 (343) 2,068 5,093
Loss for the
period - - - - (391) (391)
Other comprehensive
expense for the
period net of
tax - - - (279) (2,031) (2,310)
Total comprehensive
expense - - - (279) (2,422) (2,701)
Share based payments - - - - 26 26
Total of transactions
with shareholders - - - - 26 26
At 30 September
2016 1,990 1,269 109 (622) (328) 2,418
========= ========= ============ ========= =========== ==============
Independent review report to Chamberlin plc
Introduction
We have been engaged by the Company to review the financial
information in the half-yearly financial report for the six months
ended 30 September 2016 which comprises the Consolidated Income
Statement, Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Consolidated Statement of Cash Flows,
Consolidated Statement of Changes in Equity and the related notes.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with
guidance contained in ISRE (UK and Ireland) 2410, 'Review of
Interim Financial Information performed by the Independent Auditor
of the Entity'. Our review work has been undertaken so that we
might state to the Company those matters we are required to state
to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The AIM rules of the London
Stock Exchange require that the accounting policies and
presentation applied to the financial information in the
half-yearly financial report are consistent with those which will
be adopted in the annual accounts having regard to the accounting
standards applicable for such accounts.
As disclosed in Note 1, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The financial information in the half-yearly
financial report has been prepared in accordance with the basis of
preparation in Note 1.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the financial information in the half-yearly financial report based
on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the financial information in the
half-yearly financial report for the six months ended 30 September
2016 is not prepared, in all material respects, in accordance with
the basis of accounting described in Note 1.
GRANT THORNTON UK LLP
AUDITOR
Birmingham
28 November 2016
Notes to the Interim Financial statements
1 General information and accounting policies
This Interim Financial Report is unaudited, but has been
reviewed by the Company's auditor having regard to the
International Standard on Review Engagements (UK & Ireland)
2410 "Review of Financial Information Performed by the Independent
Auditor of the Entity", issued by the Auditing Practices Board for
use in the UK. A copy of their unmodified review report is
attached.
The 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
March 2016 were approved by the board of directors on 23 May 2016
and were filed at Companies House. The auditor's report on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498(2) or
(3) of the Companies Act 2006.
Basis of preparation
The annual financial statements of the Group are prepared in
accordance with IFRS as adopted by the European Union. The
condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with the 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 March 2016.
No new standards or interpretations issued since 31 March 2016
have had a material impact on the accounting of the Group.
Hedge activities
At 30 September 2016 the Group held 18 months' worth of foreign
currency forward contracts designated as hedges of expected future
sales to customers in Europe for which the Group has highly
probable forecasted transactions
Going concern
After making appropriate enquiries, the directors consider that
the Group has adequate resources to continue in operation for the
foreseeable future. In forming this view the directors have
reviewed internal cashflow and profit forecasts in conjunction with
the available headroom on the invoice finance and overdraft
facility. For this reason, they continue to adopt the going concern
basis in preparing the accounts.
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.
Segmental revenue Segmental operating
profit
Unaudited Unaudited
six Unaudited Unaudited six
months six months Year six months months Year
ended ended ended ended ended ended
30 Sep 30 Sep 31 March 30 Sep 30 Sep 31 March
2016 2015 2016 2016 2015 2016
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Foundries 11,327 13,306 25,635 355 308 1,212
Engineering 5,119 4,733 9,353 310 338 679
------------------ ------------ ----------- ------------ ---------- -----------
Segmental
results 16,446 18,039 34,988 665 646 1,891
------------------ ------------ ----------- ------------ ---------- -----------
Reconciliation of reported segmental operating
profit to (loss) before tax
Unaudited
Unaudited six
six months months Year
ended ended ended
30 Sep 30 Sep 31 March
2016 2015 2016
GBP000 GBP000 GBP000
Segmental
operating
profit 665 646 1,891
Shared costs (563) (497) (1,061)
Exceptional
and non-underlying
costs (316) (412) (746)
Net finance
costs (174) (163) (320)
Loss before
tax (388) (426) (236)
============ ========== ===========
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 and imported products to
distributors and end-users. The products fall into the categories
of door hardware, hazardous area lighting and control gear and
cable management.
Financing and income tax are managed on a Group basis and are
not allocated to operating segments.
3 Finance income and costs
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2016 2015 2016
GBP000 GBP000 GBP000
Interest on bank overdraft (94) (92) (178)
Net interest on net defined
benefit pension liability (80) (71) (142)
(174) (163) (320)
============== ============== ===========
4 Income tax expense
An effective rate of tax for the six months to 30 September 2016
of 1% (30 September 2015: 14%) has been used in these interim
statements.
The effective rate of tax is lower than the standard rate
because of utilising losses brought forward to reduce the tax
charge. The 2015 effective rate of tax is lower than the standard
rate because of non-deductible expenses reducing the overall tax
credit in the period.
The corporation tax rate fell from 21% for the year ended 31
March 2015 to 20% for the year ended 31 March 2016. The corporation
tax rate will reduce to 19% from 1 April 2017 and to 18% by 1 April
2020, rate changes which were substantively enacted on 26 October
2015. It is not anticipated that the subsequent reduction to 18%
will have a material effect on the Company's future current or
deferred tax charges.
5 (Loss)/ earnings per share
The calculation of (Loss)/ earnings per share is based on the
profit attributable to shareholders and the weighted average number
of ordinary shares in issue. In calculating the diluted (loss)/
earnings per share, adjustment has been made for the dilutive
effect of outstanding share options. Underlying (loss)/ earnings
per share, which excludes exceptional costs, net financing cost of
pension obligation, administration costs of the pension scheme and
share based compensation, less related tax thereon, 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
six months six months Year ended
ended ended 31 March
30 September 30 September 2016
2016 2015
GBP000 GBP000 GBP000
(Loss)/ earnings for
basic earnings per share (391) (367) (261)
Exceptional costs 201 285 463
Net financing cost and
service cost on pension
obligation 169 171 372
Share based payments
charge 26 27 53
Taxation effect of the
above (79) (97) (177)
-------------- -------------- -------------
Earnings for underlying
earnings per share (74) 19 450
-------------- -------------- -------------
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2016
2016 2015
000 000 000
Weighted average number
of ordinary shares 7,958 7,958 7,958
Adjustment to reflect
dilutive shares under
option - 180 160
-------------- -------------- -------------
Diluted weighted average
number of ordinary shares 7,958 8,138 8,118
-------------- -------------- -------------
As at 30 September 2016 there is no adjustment to the 52,353
shares under option for the loss per share calculation as they are
required to be excluded from the weighted average number of shares
as they are anti-dilutive for the period then ended. As at 30
September 2015 and 31 March 2016 there is no adjustment for the
180,177 and 160,300 shares under option respectively for the
diluted loss per share calculation as they are required to be
excluded from the weighted average number of shares for diluted
loss per share as they are anti-dilutive for the period then
ended.
6 Pensions
The Group operates a defined benefit pension scheme and a number
of defined contribution pension schemes on behalf of its employees.
For defined contribution schemes, 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 September 30 September 31 March
2016 2015 2016
Salary increases n/a n/a n/a
Pension increases (post
1997) 2.9% 2.9% 2.9%
Discount rate 2.2% 3.7% 3.5%
Inflation assumption
- RPI 3.0% 2.9% 2.9%
Inflation assumption
- CPI 2.2% 1.8% 2.1%
The demographic assumptions used for 30 September 2016, were the
same as used in 31 March 2016, 30 September 2015 and the last full
actuarial valuation performed as at 1 April 2013. The triennial
valuation as at 1 April 2016 is currently underway.
The defined benefit scheme funding has changed under IAS 19 as
follows:
Unaudited Unaudited
six months six months Year to
Funding status to to 31 March
30 September 30 September 2016
2016 2015 GBP000
GBP000 GBP000
Scheme assets at end
of period 13,220 12,824 12,974
Benefit obligations at
end of period (20,402) (17,241) (17,666)
------------------------ -------------------------- -----------
Deficit in scheme (7,182) (4,417) (4,692)
Related deferred tax
asset 1,293 883 845
------------------------ -------------------------- -----------
Net pension liability (5,889) (3,534) (3,847)
======================== ========================== ===========
The increase in the net pension liability since March 2016 is
mainly due to an increase in the value of liabilities as a
consequence of a decrease in bond yields reducing the discount
rate.
7 Exceptional costs and non-underlying items
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2016
2016 2015
GBP000 GBP000 GBP000
Group reorganisation 202 285 463
Exceptional costs 202 285 463
============== ============== =============
Share based payment charge 26 27 53
Defined benefit pension
scheme administration
costs 88 100 230
Non-underlying other
operating expenses 316 412 746
============== ============== =============
Taxation
- tax effect of non-underlying
other operating expenses (63) (82) (149)
253 330 597
===== ===== ======
During the year ended March 2016, the Group continued to
rationalise operations given the reduced levels of turnover seen in
the Leicester and Scunthorpe foundries. Group reorganisation costs,
including redundancy and recruitment, relate to this
rationalisation.
Further reorganisation and redundancy costs were incurred during
the current period as a result of actions taken to reduce headcount
in response to decreased revenues at the Leicester site.
8 Net debt
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2016
2016 2015
GBP000 GBP000 GBP000
Financial liabilities
Bank overdraft 209 378 126
Current instalments due
on finance leases 33 24 33
Current instalments due
on asset finance loans 200 200 200
Invoice finance liability 4,042 3,385 2,582
-------------- -------------- -------------
Financial liabilities
due in less than one
year 4,484 3,987 2,941
-------------- -------------- -------------
Instalments due on finance
leases in greater than
one year 723 48 51
Instalments due on asset
finance loans in greater
than one year 100 300 200
-------------- -------------- -------------
Total financial liabilities 823 348 251
-------------- -------------- -------------
Net debt 5,307 4,335 3,192
============== ============== =============
Available facility 6,960 6,178 5,836
Maximum available headroom 1,653 1,843 2,644
9 Interim report
Copies of this interim results statement will be available on
the Group's website, www.chamberlin.co.uk, and from the Group's
headquarters at Chuckery Road, Walsall, West Midlands, WS1 2DU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BPBRTMBBTBTF
(END) Dow Jones Newswires
November 29, 2016 02:00 ET (07:00 GMT)
Chamberlin (LSE:CMH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Chamberlin (LSE:CMH)
Historical Stock Chart
From Apr 2023 to Apr 2024