TIDMCMH
RNS Number : 3573L
Chamberlin PLC
24 December 2018
24 December 2018
AIM: CMH
CHAMBERLIN PLC
("Chamberlin" or "the Company" or "the Group")
Half Year Results*
For the six months to 30 September 2018
Key Points
-- Group continuing revenues for six months to September 2018
rose by 21.3% to GBP17.4m (2017**: GBP14.3m), mainly reflecting
increased production volumes of turbo charger bearing housings.
-- Gross margin at 12.6% (preceding six months to 31 March 2018:
17.9% and six months to 30 Sept 2017: 15.9%) was affected by excess
cost and production inefficiencies.
-- Underlying loss before tax reduced by 40.5% to GBP485,000
(2017**: loss of GBP816,000). Statutory loss before tax decreased
by 68.9% to GBP166,000 (2017: loss of GBP534,000).
-- Statutory loss per share decreased to 3.34p (2017**: loss of 13.81p).
-- Foundries revenues up by 24.0% to GBP15.4m:
- demand for turbo charger bearing housings rose, as expected
- machining facility contributed incremental revenues of GBP2.8m (2017: GBP0.8m)
-- Engineering revenues up by 3.3% to GBP1.9m.
-- Post period, as announced on 20 December 2018, the Group
completed the sale of Exidor, its Cannock-based engineering
business, for a consideration of GBP10m in cash to ASSA ABLOY
Limited.
-- Volume-related inefficiencies in the foundry division are now
resolved and the Group is expected to deliver an improved
performance in the second half of the financial year although the
trading backdrop is difficult.
Notes
*The results for the six months to 30 September 2018 are stated
on a continuing basis
**The comparative figures for 2017 have been restated to reflect
the presentation of Exidor as a discontinued operation.
Chairman, Keith Butler-Wheelhouse, commented:
"Production volumes at our foundry operations rose significantly
over the period, reflecting the ramping up of major contracts and
the increasing use of turbo chargers in both hybrid vehicles and
petrol engine cars to improve fuel efficiency. However, while
revenues rose strongly, foundry margins were significantly affected
by production issues. These volume-related inefficiencies have now
been addressed and the Group is expected to deliver an improved
performance in the second half although the trading backdrop is
difficult.
The recently completed sale of the Exidor engineering business
has significantly strengthened the Group's financial position,
reducing both net debt and pension liabilities and providing
additional working capital, and we remain focused on the further
development of our core operations."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
Enquiries
Chamberlin plc T: 01922 707100
Kevin Nolan, Chief Executive
Neil Davies, Finance Director
Cenkos Securities plc T: 020 7397 8900
(Nominated Adviser and Broker)
Russell Cook, Katy Birkin
KTZ Communications T: 020 3178 6378
(Financial PR)
Katie Tzouliadis, Emma Pearson,
Dan Mahoney
CHAIRMAN'S STATEMENT
Introduction
Revenues in the first six months of the financial year were
sharply higher than the same period last year as production volumes
at our core foundry increased and our engineering business also
performed well. However, the Group's overall margin was adversely
affected by excess cost and production inefficiency in the
foundries division. These volume-related inefficiencies in the
foundry division are now resolved and the Group is expected to
deliver an improved performance in the second half of the financial
year although the trading backdrop is difficult.
Results
The Group's continuing revenues increased by 21.3% to GBP17.4m
in the six months to September 2018 (2017: GBP14.3m). This
substantial rise was driven mainly by the expected increase in
production volumes for turbo charger bearing housings.
While gross profit increased by 18.7% to GBP2.2m (2017:
GBP1.8m), cost inefficiencies within our foundry operation,
principally associated with the ramp up of production volumes,
depressed this result, with gross margin at 12.6%. This compares to
gross margin of 17.9% in the preceding six months to 31 March
2018.
The underlying loss before tax reduced by 40.5% to GBP485,000
(2017: loss of GBP816,000).
On a statutory basis, the loss before tax of GBP608,000 showed a
significant turnaround against the same period in the prior year
(2017: loss before tax of GBP1,052,000). The loss is after
impairment of deferred tax assets of nil (2017: GBP374,000). The
statutory loss per share was 3.34p (2017: loss of 13.81p).
The net debt position following the receipt of the proceeds of
the sale of Exidor is GBP3.7m. The net debt position at 30
September 2018 was GBP10.4m (30 September 2017: GBP8.2m; 31 March
2018: GBP8.9m).
Pension
The Group's net pension liability has decreased by 20% to
GBP4.0m (31 March 2018: GBP5.0m). This was due to a reduction in
the value of liabilities as a consequence of an increase in bond
yields and therefore the discount rate. Following the sale of
Exidor, the net pension liability has further reduced to
GBP1.5m.
Operations
The two foundries, at Walsall and Scunthorpe, generated combined
revenues of GBP15.4m (2017: GBP12.4m) over the first half, a rise
of 24.0% over the same period last year and moved from an operating
loss to a breakeven operating profit position of GBP0.1m (2017:
loss of GBP0.2m).
As expected, the new machining facility at Walsall contributed
significantly increased higher revenues, of GBP2.8m (2017:
GBP0.8m). The increased revenues generated by our foundry
operations reflect the benefits of contracts won to supply turbo
charger bearing housings. These are increasingly being used to
maximise fuel efficiency of both petrol and hybrid vehicle engines.
Hybrid vehicles typically incorporate smaller petrol engines with
two turbo chargers in many cases.
The production issues which impacted margins have been addressed
and we therefore expect to deliver an improved performance in the
second half although the trading backdrop is difficult.
Following the recent sale of Exidor, the engineering division
now comprises Petrel, which manufactures lighting and control
equipment for use in hazardous areas. The division increased
revenues by 3.3% to GBP1.94m (2017: GBP1.87m). Operating profit
improved to GBP0.12m (H1 2017: GBP0.07m), a rise of 63.9%.
The sale of Exidor to ASSA ABLOY Ltd, the largest global
supplier of lock and security systems, was agreed for a total
consideration of GBP10m, payable in cash. The proceeds improve the
Group's financial position, reducing net debt, providing additional
working capital and also decreasing certain existing pension
liabilities.
Outlook
The Group is expected to deliver an improved second half
performance. However, trading conditions remain tough due to
schedule reductions from turbo charger customers. This reflects
uncertainties created by Brexit and the new vehicle emissions
testing regime, and we are taking actions to respond
appropriately.
Keith Butler-Wheelhouse
Chairman
21 December 2018
Consolidated Income Statement
for the six months ended 30 September 2018
Restated
Unaudited Unaudited
six months ended six months ended Year ended
Note 30 September 2018 30 September 2017 31 March 2018
# # #
Underlying Non-underlying Total Underlying Non-underlying Total Underlying Non-underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2 17,363 - 17,363 14,316 - 14,316 30,153 - 30,153
Cost of sales (15,170) - (15,170) (12,469) - (12,469) (25,475) - (25,475)
Gross profit 2,193 - 2,193 1,847 - 1,847 4,678 - 4,678
Other
operating
expenses 7 (2,526) (61) (2,587) (2,535) (172) (2,707) (4,994) (324) (5,318)
---------- -------------- ----------- ---------- -------------- ---------- ---------- -------------- ------------
Operating
(loss)/
profit (333) (61) (394) (688) (172) (860) (316) (324) (640)
Finance costs 3 (152) (62) (214) (128) (64) (192) (347) (126) (473)
---------- -------------- ----------- ---------- -------------- ---------- ---------- -------------- ------------
(Loss)/ profit
before tax (485) (123) (608) (816) (236) (1,052) (663) (450) (1,113)
Tax credit/
(expense) 4,7 98 23 (121) 78 (329) (251) (324) 85 (239)
---------- -------------- ----------- ---------- -------------- ---------- ---------- -------------- ------------
(Loss)/ profit
for the
period
from
continuing
operations (387) (100) (487) (738) (565) (1,303) (987) (365) (1,352)
---- ---------- -------------- ----------- ---------- -------------- ---------- ---------- -------------- ------------
Discontinued
operations
Profit for the
period from
discontinued
operations 221 - 221 204 - 204 539 - 539
---- ---------- -------------- ----------- ---------- -------------- ---------- ---------- -------------- ------------
(Loss)/ profit
for the
period
attributable
to
equity
holders
of the Parent
Company (166) (100) (266) (534) (565) (1,099) (448) (365) (813)
========== ============== =========== ========== ============== ========== ========== ============== ============
(Loss) per
share
from
continuing
operations:
Basic 5 (6.10)p (16.37)p (16.99)p
Earnings per
share
from
discontinued
operations:
Basic 5 2.77p 2.57p 6.77p
Total (loss)
per
share:
Basic 5 (3.34)p (13.81)p (10.2)p
(#) 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 the associated tax impact of these items.
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2018
Unaudited
six months Unaudited
ended six months ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Loss for the period (266) (1,099) (813)
Other comprehensive
income
Reclassification for
cash flow hedges included
in sales (19) (152) (18)
Movements in fair value
on cash flow hedges
taken to other comprehensive
income (139) 165 87
Deferred tax on movements
in cash flow hedges 26 (2) (12)
Net other comprehensive
expense that may be
recycled to profit
and loss (132) 11 57
Re-measurement gains/
(losses)on pension
assets and liabilities 984 291 (8)
Deferred/ current tax
on re-measurement (losses)/
gains on pension assets
and liabilities (186) (55) 2
Net other comprehensive
income/(expense) that
will not be reclassified
to profit and loss 798 236 (6)
-------------- ------------------ ------------
Other comprehensive
expense for the period
net of tax 666 247 51
Total comprehensive
expense for the period
attributable to equity
holders of the Parent
Company 400 (852) (762)
============== ================== ============
Consolidated Balance Sheet
at 30 September 2018
Unaudited Unaudited
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Non-current assets
Property, plant and
equipment 10,407 10,380 11,703
Intangible assets 298 424 427
Deferred tax assets 945 1,141 1,136
-------------- -------------- ---------
11,650 11,945 13,266
Current assets
Assets held for sale 3,140 - -
Inventories 2,818 3,367 3,551
Trade and other receivables 7,151 7,617 7,985
13,109 10,984 11,536
-------------- -------------- ---------
Total assets 24,759 22,929 24,802
============== ============== =========
Current liabilities
Financial liabilities 8,614 6,246 6,989
Trade and other payables 6,509 6,579 7,465
15,123 12,825 14,454
-------------- -------------- ---------
Non-current liabilities
Financial liabilities 1,855 1,972 1,889
Deferred tax liabilities - 17 23
Provisions 200 200 200
Defined benefit pension
scheme deficit 4,023 4,850 5,080
6,078 7,039 7,192
Total liabilities 21,201 19,864 21,646
-------------- -------------- ---------
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 (174) (61) (15)
Retained earnings 364 (242) (197)
-------------- -------------- ---------
Total equity 3,558 3,065 3,156
-------------- -------------- ---------
Total equity and liabilities 24,759 22,929 24,802
============== ============== =========
Consolidated Cash Flow Statement
for the six months ended 30 September 2018
Unaudited Unaudited
six months six months
ended ended Year ended
30 September 30 September 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Operating activities
(Loss) for the period before
tax (608) (1,052) (1,113)
Adjustments for:
Net finance costs excluding
pensions 152 128 347
Depreciation of property,
plant and equipment 631 618 1,280
Amortisation of software 28 48 60
Amortisation of development 10 - -
costs
Profit on disposal of property
plant and equipment 8 - 5
Share based payments 4 39 46
Difference between pension
contributions paid and
amounts recognised in the
Income Statement (73) (67) (137)
Increase in inventories (506) 158 75
Increase in receivables (846) (293) (315)
Increase in payables 354 96 544
Cash (outflow)/ inflow
from continuing operations (846) (325) 792
Cash (outflow)/ inflow
from discontinued operations (45) 23 -
Net cash (outflow)/inflow
from operating activities (891) (301) 1,300
Investing activities
Purchase of property,
plant and equipment (464) (887) (2,958)
Purchase of software - (14) (16)
Development costs - - (24)
Disposal of property,
plant and equipment - 21 25
Investing activities from
discontinued operations (68) - -
Net cash outflow from investing
activities (532) (880) (2,973)
Financing activities
Interest paid (168) (142) (377)
Repayment of asset loans - (81) (200)
Net invoice finance drawdown 2,127 1,194 1,230
Import loan facility (repayment) (1,137) (879) (98)
Finance leases taken out 780 891 849
Net cash inflow from financing
activities 1,602 983 1,404
-------------- -------------- ------------------------------
Net increase in cash and
cash equivalents 179 (199) (269)
Cash and cash equivalents
at the start of the period (485) (216) (216)
-------------- -------------- ------------------------------
Cash and cash equivalents
at the end of the period (306) (414) (485)
============== ============== ==============================
Cash and cash equivalents
included in discontinued
operations 902 273 572
Cash and cash equivalents
for continuing operations (1,208) (687) (1,057)
Cash and cash equivalents
compromise:
Overdraft (306) (414) (485)
============== ============== ==============================
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2018
Attributable
to equity
Capital holders
redemption Hedging Retained of the
Share capital Share premium reserve reserve earnings parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2017 1,990 1,269 109 (72) 582 3,878
Loss for the period - - - - (1,099) (1,099)
Other comprehensive
expense for the period
net of tax - - - 11 236 247
-------------- -------------- ------------ --------- ----------- --------------
Total comprehensive
expense - - - 11 (863) 3,026
Share based payments - - - - 39 39
Total of transactions
with shareholders - - - - 39 39
At 30 September 2017 1,990 1,269 109 (61) (242) 3,065
Loss for the period - - - - 286 286
Other comprehensive
income/ (expense)
for the period net
of tax - - - 46 (242) (196)
-------------- -------------- ------------ --------- ----------- --------------
Total comprehensive
income - - - 46 44 90
Share based payments - - - - 7 7
Deferred tax on employee
share options - - - - (6) (6)
-------------- -------------- ------------ --------- ----------- --------------
Total of transactions
with shareholders - - - - 1 1
At 1 April 2018 1,990 1,269 109 (15) (198) 3,155
Loss for the period - - - - (266) (266)
Other comprehensive
income for the period
net of tax - - - (132) 798 665
Total comprehensive
income/ (expense) - - - (132) 532 400
Share based payments - - - - 4 4
Total of transactions
with shareholders - - - - 4 4
At 30 September 2018 1,990 1,269 109 (147) 338 3,559
============== ============== ============ ========= =========== ==============
Independent review report to Chamberlin plc
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report of
Chamberlin Plc (the 'company') for the six months ended 30
September 2018 which comprises 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
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. Our review work has been undertaken so that we might state
to the company those matters we are required to state to them in an
independent 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 as a body, 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 directors are responsible
for preparing the half yearly financial report in accordance with
the Disclosure and Transparency rules of the United Kingdom's
Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with International Financial
Reporting Standards 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 International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union.
Our responsibility
Our responsibility is to express a conclusion on the condensed
set of financial statements 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 condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2018 is not prepared, in all material respects, in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Birmingham
21 December 2018
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 Interim 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 2018 were approved by the board of directors on 14 June 2018
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 2018.
No new standards or interpretations issued since 31 March 2018
have had a material impact on the accounting of the Group.
Restatement
The unaudited income statement for the six months to 30
September 2017, and the accompanying notes, have been restated to
reflect the presentation of Exidor as a discontinued operation.
Going concern
The Group's forecasts and projections, taking account of
reasonably possible changes in trading conditions, show that the
Group is able to operate within the level of its current bank
facilities, comprising a GBP7.75m invoice discounting facility
renewable in March 2019 (no indication that this will not be
renewed in March 2019) and finance leases of GBP3.3m repayable over
5 years. As a consequence, the Directors believe that the Group is
well placed to manage its business and financial risks
successfully.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing the
interim condensed consolidated Financial Statements.
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
Restated Restated
Unaudited Unaudited Unaudited Unaudited
six months six months Year six months six months
ended ended ended ended ended Year ended
30 Sep 30 Sep 31 March 30 Sep 30 Sep 31 March
2018 2017 2018 2018 2017 2018
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Foundries 15,427 12,443 26,396 115 (166) 528
Engineering 1,936 1,873 3,757 119 73 229
------------------ ------------ ----------- ------------ ------------ -------------
Continuing operations 17,363 14,316 30,153 234 (93) 757
Discontinued
operations 4,016 3,590 7,517 293 255 672
------------------ ------------ ----------- ------------ ------------ -------------
Segmental results 21,379 17,906 37,670 527 162 1,429
------------------ ------------ ----------- ------------ ------------ -------------
Reconciliation of reported segmental operating profit to (loss)/
profit before tax
Restated
Unaudited Unaudited
six months six months
ended ended Year ended
30 Sep 30 Sep 31 March
2018 2017 2018
GBP000 GBP000 GBP000
Segmental operating
profit 234 (93) 757
Shared costs (567) (594) (1,073)
Exceptional
and non-underlying
costs (61) (172) (324)
Net finance
costs (230) (206) (503)
Profit from
discontinued
operations 293 255 672
(Loss)/ profit
before tax (331) (810) (471)
============ ============ =============
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 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
2018 2017 2018
GBP000 GBP000 GBP000
Interest on bank overdraft (168) (142) (377)
Net interest on net defined benefit
pension liability (62) (64) (126)
(230) (206) (503)
============== ============== ===========
4 Income tax expense
An effective rate of tax for the six months to 30 September 2018
of 19% (30 September 2017: 36%) has been used in these interim
statements.
The previous effective rate of tax was higher than the standard
rate because of writing off tax losses and deferred tax assets
brought forward at Russell Ductile Castings Limited leading to an
increased tax charge
The corporation tax rate remained at 19% for the year ended 31
March 2018. The rate will fall to 17% from 1 April 2020. It is not
anticipated that the subsequent reduction to 17% will have a
material effect on the Company's future current or deferred tax
charges.
5 (Loss)/ earnings per share
The calculation of (loss) 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) per
share, adjustment has been made for the dilutive effect of
outstanding share options. Underlying (loss) 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 ended six months Year ended
30 September ended 31 March
2018 30 September 2018
2017
GBP000 GBP000 GBP000
Continuing operations loss for
basic earnings per share (487) (1,303) (1,352)
Exceptional costs - 21 60
Net financing cost and service
cost on pension obligation 119 176 344
Share based payments charge 4 39 46
Deferred tax asset write off - 374 -
Taxation effect of the above (23) (45) (85)
------------------ -------------- -------------
(Loss)/ earnings for underlying
earnings per share (387) (738) (987)
------------------ -------------- -------------
Unaudited Unaudited
six months ended six months Year ended
30 September ended 31 March
2018 30 September 2018
2017
GBP000 GBP000 GBP000
Discontinued operations loss
for basic earnings per share 221 204 539
Exceptional costs - - -
Taxation effect of the above - - -
------------------ -------------- -------------
Earnings for underlying earnings
per share 221 204 539
------------------ -------------- -------------
Unaudited Unaudited
six months ended six months Year ended
30 September ended 31 March
2018 30 September 2018
2017
000 000 000
Weighted average number of ordinary
shares 7,958 7,958 7,958
Adjustment to reflect dilutive
shares under option 350 350 350
------------------ -------------- -------------
Diluted weighted average number
of ordinary shares 8,308 8,308 8,308
------------------ -------------- -------------
There is no adjustment to the 350,000 shares respectively 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.
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
2018 2017 2018
Salary increases n/a n/a n/a
Pension increases (post 1997) 3.1% 3.1% 3.1%
Discount rate 2.7% 2.6% 2.5%
Inflation assumption - RPI 3.2% 3.2% 3.2%
Inflation assumption - CPI 2.2% 2.2% 2.2%
The demographic assumptions used for 30 September 2018, were the
same as used in 31 March 2018, 30 September 2017 and the last full
actuarial valuation performed as at 1 April 2016. The triennial
valuation as at 1 April 2016 was concluded during the period and
maintained the current level of monthly cash payments paid into the
scheme. The contributions expected to be paid during the year to 31
March 2019 are GBP271,000. The triennial valuation as at 1 April
2016 increased the deficit reduction period from 2028 to 2038.
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 2018
2018 2017 GBP000
GBP000 GBP000
Scheme assets at end of period 13,617 13,421 13,207
Benefit obligations at end of
period (17,640) (18,272) (18,287)
------------------------ -------------------------- -----------
Deficit in scheme (4,023) (4,850) (5,080)
Related deferred tax asset 684 825 864
------------------------ -------------------------- -----------
Net pension liability (3,339) (4,025) (4,216)
======================== ========================== ===========
The decrease in the net pension liability since March 2018 is
mainly due to a decrease in the value of liabilities as a
consequence of an increase in bond yields increasing 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 2018
2018 2017
GBP000 GBP000 GBP000
Group reorganisation - 21 60
Exceptional costs - 21 60
============== ============== =============
Share based payment charge 4 39 46
Defined benefit pension scheme
administration costs 57 112 218
Non-underlying other operating
expenses 61 172 324
-------------- -------------- -------------
Non-underlying exceptional costs - - -
of discontinued operations
------ ----- -----
Taxation
Write off of deferred tax assets - 374 -
- tax effect of non-underlying
other operating expenses (23) (33) (52)
(23) 341 (52)
===== ===== =======
During the year ended 31 March 2018, the Group rationalised
operations at the Scunthorpe foundry given the reduced levels of
turnover. Reorganisation costs, including redundancy and
recruitment, relate to this rationalisation.
8 Net debt
Unaudited Unaudited
six months six months Year ended
ended ended 31 March
30 September 30 September 2018
2018 2017
GBP000 GBP000 GBP000
Financial liabilities
Bank overdraft 306 414 485
Current instalments due on finance
leases 841 586 627
Current instalments due on asset
finance loans 600 100 -
Import loan facility - 356 1,137
Invoice finance liability 6,867 4,790 4,740
-------------- -------------- -------------
Financial liabilities due in
less than one year 8,614 6,246 6,989
-------------- -------------- -------------
Instalments due on finance leases
in greater than one year 1,855 1,972 1,889
Total financial liabilities 1,855 1,972 1,889
-------------- -------------- -------------
Net debt 10,469 8,218 8,878
============== ============== =============
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 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.
END
IR TJBBTMBTTBAP
(END) Dow Jones Newswires
December 24, 2018 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