TIDMCMH
RNS Number : 2718W
Chamberlin PLC
21 December 2021
21 December 2021
AIM: CMH
CHAMBERLIN PLC
("Chamberlin" or "the Company" or "the Group")
Interim Results
for the six months ended 30 November 2021
Chamberlin plc (AIM: CMH) announces its interim results for the
six months ended 30 November 2021.
Key Points
-- H1 2021 operational performance significantly improved
compared to prior year with the Group delivering a profit after tax
for the first time in five years.
-- Revenue of GBP8.0m (H1 2020: GBP11.0m) reflects loss of
revenue attributable to BorgWarner offset by strong growth at
Russell Ductile Castings ("RDC") and Petrel, and initial revenues
from new business to consumer E-commerce brands - Emba cookware
("Emba") and Iron Foundry Weights ("IFW").
-- The result before tax was broadly break-even (H1 2020:
GBP0.6m loss), with profit after tax of GBP0.1m (H1 2020: GBP0.7m
loss).
Chairman, Keith Butler-Wheelhouse, commented:
"I am delighted to report that the difficulties of the past 18
months are now largely behind us. The actions taken by the Company
in the first half have stabilised the Group and delivered a profit
after tax for the first time in five years. Chamberlin is now well
placed to deliver profitable growth in the second half, driven by a
new strategic direction into expanding markets across all our
businesses."
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
Alan Tomlinson, Finance Director
Cenkos Securities plc (Nominated Adviser T: 020 7397 8900
and Broker)
Stephen Keys, Katy Birkin
Peterhouse Capital Limited (Joint Broker) T: 020 7469 0930
Lucy Williams
Duncan Vasey
Chairman's Statement
Chamberlin plc (AIM: CMH) announces its interim results for the
six months ended 30 November 2021.
Revenues in the first six months reduced from GBP11.0m in the
prior period to GBP8.0m, primarily reflecting the loss of revenue
attributable to BorgWarner that ceased in the previous financial
period. Encouragingly, revenues at both RDC and Petrel were
markedly ahead of the prior year with revenue growing, in
aggregate, by 20%. RDC achieved organic revenue growth of 12%
driven by increasing demand across a number of sectors,
particularly the renewables market.
Despite the reduction in revenue, the operational performance of
the Group showed promising progress, with improvement from an
operating loss before non-underlying items of GBP0.2m in the
comparative period to a broadly break-even position in the first
half. This was despite significant headwinds associated with global
supply chain issues that have caused the cost of raw materials,
energy and transportation to escalate well beyond what would be
considered to be business as usual. As a result of the swift and
decisive actions taken by the management team, Chamberlin has been
able to mitigate these adverse impacts and to protect the
profitability of the Group. In addition, in the first half, the
Group has absorbed the initial marketing costs incurred in
establishing Chamberlin's two new E-commerce businesses - Emba and
IFW.
Following interest costs of GBP0.1m, the loss before taxation
reduced to GBP0.1m in the first half from GBP0.6m in the prior
period. This reduction in losses was driven by substantially
improved operating profit from RDC and Petrel and the benefits from
the rationalisation of the cost base at Chamberlin & Hill
Castings and the Group's head office undertaken at the end of the
previous financial period. With the Group anticipating a return to
profitability in the second half of the year, the Group expects to
begin to utilise the significant amount of tax trading losses
accumulated in prior years, which have an estimated tax value of
around GBP4.0m. After a tax credit of GBP0.2m, the Group has
reported a profit attributable to shareholders of GBP0.1m (H1 2020:
GBP0.7m loss), for the first time in five years.
As announced on 16 September 2021, the Company commenced a
review of the use of its substantial property assets with the
objective of strengthening the balance sheet and improving
operational and investment returns from Group resources. This
review continues and ensuring that the Group has the necessary
resources to deliver on its growth strategy remains a key focus for
the Board.
Outlook
Chamberlin is now confident it has a platform on which to build
the business to the next level. The initial product ranges at
Chamberlin & Hill Castings have been launched under the Group's
new E-commerce brands, Emba cookware and Iron Foundry Weights, and
both have a pipeline of new products under development at the
design or prototype stage.
The launch of our Emba cookware at the BBC Good Food Show at the
end of November 2021 was particularly well received by consumers,
who provided positive validation of both the quality of the Emba
products and the potential level of interest in premium, UK made
cast iron cookware. With the initial product range launched and
direct access to our products available through our Emba cookware
website (embacookware.co.uk) as well as via Amazon, we are now
embarking on more penetrative marketing strategies for sales direct
to consumers, together with targeted marketing to businesses.
Chamberlin has a unique opportunity in the growing UK cast iron
cookware market to acquire market share as the sole UK based
manufacturer and distributor of these products. With the in-house
capability to design, manufacture and distribute new products into
a global marketplace, the Board firmly believe that further
development and investment in Emba cookware will position the brand
to be a significant contributor to growth over the coming months
and years.
The IFW brand was launched in May 2021 and significant interest
has been generated in the product range from a number of
well-respected fitness industry market participants. Although IFW
was initially successful from direct selling to the consumer, the
Board believe that the more lucrative opportunities will derive
from partnerships or commercial arrangements with established
businesses in the fitness industry, where the Group can offer
high-quality, bespoke UK made products that have a significantly
reduced carbon footprint compared to products imported from
overseas. Chamberlin has the existing capability to not only design
and manufacture cast iron fitness products but is also actively
investing in repurposing its state-of-the-art machining facility to
be able to produce its new range of steel precision machined
"indestructible" dumbbells, with our unique "Shrink-Fit" assembly
technology.
In Chamberlin & Hill Casting's legacy markets, uncertainty
continued through the fourth quarter of the calendar year regarding
the global availability of micro-chips for the automotive sector.
Despite signs of strong consumer demand for new cars, the pace of
the recovery in volumes to pre-Covid-19 pandemic levels cannot be
estimated with any degree of certainty. Although our existing
high-volume programmes are subject to factors outside of our
control, our reputation for quality and delivery has ensured that
we continue to be nominated for prestigious low-volume programmes
at attractive margins. In the UK construction sector, we continue
to improve our order book by remaining competitive on price and
providing a reliable, quality UK based solution to supply chain
disruptions. The CNC machining division of Chamberlin & Hill
Castings has taken some important steps towards re-building its
customer base and backfilling idle capacity. The appointment of two
new members to the commercial team and the recent nomination for a
second diesel generator component programme give the management
team confidence in a robust recovery.
RDC has enjoyed a particularly successful 12-18 months, driven
by a burgeoning order book and growing pipeline of opportunities.
The main driver for this success has been a combination of reduced
competition in the UK as a number of competitor foundries have been
forced out of business and, more recently, an increasing desire to
source products from the UK rather than overseas due to the often
prohibitive transportation costs, excessive lead times and the
impact on the global environment. The Board are seeking to take
advantage of this unique set of circumstances by embarking on a
programme to expand both the production capacity by 30% and types
of product that can be manufactured at RDC's facilities. Building
on RDC's recent successes is a key priority for the Board and
includes exploring opportunities to design and manufacture its own
products.
Petrel, the Group's hazardous area-light manufacturer and
distributor, has also continued to go from strength to strength in
the last 12 months. Orders have recovered from the Covid-19 induced
low in the first half of 2020, with significant new orders secured,
particularly in the defence and shipping sectors. Management have
quickly identified a market shift towards the online distribution
of its products and in recent months has developed significant
commercial agreements with key online market participants that will
enable Petrel to maintain its revenue growth potential. A further
example of Petrel's ability to respond to market needs was the
launch in October 2021 of a new portable product hire service. In
addition, management continue to monitor trends in the market by
adapting Petrel's existing product range and developing new
products to expand its offering as new technology continues to
evolve.
The Board is confident that Chamberlin is now positioned for a
growing and profitable future and that this is expected to be
reflected in shareholder returns as the Group progresses its
revised strategy.
Keith Butler-Wheelhouse
Chairman
Consolidated Income Statement
for the six months ended 30 November 2021
Unaudited Unaudited
six months ended six months ended 14 months ended
Note 30 November 2021 30 September 2020 31 May 2021
# # #
Underlying Non-underlying Total Underlying Non-underlying Total Underlying Non-underlying Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2 8,013 - 8,013 11,044 - 11,044 26,444 - 26,444
Cost of sales (6,636) - (6,636) (9,458) - (9,458) (24,262) - (24,262)
Gross profit 1,377 - 1,377 1,586 - 1,586 2,182 - 2,182
Other operating
expenses 7 (1,409) 50 (1,359) (1,798) (247) (2,045) (5,083) (7,193) (12,276)
----------- --------------- ------------ ----------- --------------- -------- ----------- --------------- -------------
Operating
(loss)/profit (32) 50 18 (212) (247) (459) (2,901) (7,193) (10,094)
Interest receivable - - - - - - 13 - 13
Finance costs 3 (104) - (104) (99) - (99) (310) - (310)
----------- --------------- ------------ ----------- --------------- -------- ----------- --------------- -------------
(Loss)/profit
before tax (136) 50 (86) (311) (247) (558) (3,198) (7,193) (10,391)
Tax credit/(expense) 4 188 - 188 (104) - (104) 817 - 817
----------- --------------- ------------ ----------- --------------- -------- ----------- --------------- -------------
Profit/(loss)
for the period
attributable
to equity holders
of the Parent
Company 52 50 102 (415) (247) (662) (2,381) (7,193) (9,574)
--- ----------- --------------- ------------ ----------- --------------- -------- ----------- --------------- -------------
Earnings/(loss)
per share:
Basic 5 0.1p - 0.1p (5.2)p (3.1)p (8.3)p (13.7)p (41.4)p (55.1)p
Diluted 0.1p - 0.1p (5.2)p (3.1)p (8.3)p (13.7)p (41.4)p (55.1)p
(#) 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 2021
Unaudited
six months Unaudited
ended six months ended 14 months ended
30 November 30 September 31 May
2021 2020 2021
GBP000 GBP000 GBP000
Profit/(loss) for the
period 102 (662) (9,574)
------------- ------------------ -----------------
Other comprehensive
income
Ineffective portion - 124 -
of movement in cash
flow hedges recycled
to income statement
Movements in fair value
of cash flow hedges
taken to other comprehensive
income (69) (102) 650
Deferred tax on movements
in cash flow hedges 17 17 (133)
------------- ------------------ -----------------
Net other comprehensive
(expense)/income that
may be recycled to
profit and loss (52) 39 517
------------- ------------------ -----------------
Re-measurement (losses)/gains
on pension scheme assets
and liabilities (42) (611) 463
Deferred tax on re-measurement
(losses)/ gains on
pension assets and
liabilities 8 116 7
Net other comprehensive
(expense)/ income that
will not be reclassified
to profit and loss (34) (495) 470
------------- ------------------ -----------------
Other comprehensive
(expense)/income for
the period net of tax (86) (456) 987
Total comprehensive
income/(expense) for
the period attributable
to equity holders of
the Parent Company 16 (1,118) (8,587)
============= ================== =================
Consolidated Balance Sheet
at 30 November 2021
Unaudited Unaudited
30 November 30 September 31 May
2021 2020 2021
GBP000 GBP000 GBP000
Non-current assets
Property, plant and
equipment 2,515 6,809 2,431
Intangible assets 244 303 263
Deferred tax assets 1,402 657 1,206
------------- -------------- --------
4,161 7,769 3,900
------------- -------------- --------
Current assets
Inventories 2,264 2,577 1,698
Trade and other receivables 3,160 4,434 3,932
Cash at bank 6 505 1,038
5,430 7,516 6,668
------------- -------------- --------
Total assets 9,591 15,285 10,568
============= ============== ========
Current liabilities
Financial liabilities 2,573 3,264 1,715
Trade and other payables 6,429 5,937 8,031
9,002 9,201 9,746
------------- -------------- --------
Non-current liabilities
Financial liabilities 1,007 1,941 1,158
Deferred tax liabilities 107 57 150
Provisions 890 200 890
Defined benefit pension
scheme deficit 1,077 2,442 1,190
3,081 4,640 3,388
Total liabilities 12,083 13,841 13,134
------------- -------------- --------
Capital and reserves
Share capital 2,051 1,990 2,051
Share premium 4,720 1,269 4,720
Capital redemption
reserve 109 109 109
Hedging reserve 166 (260) 218
Retained earnings (9,538) (1,664) (9,664)
------------- -------------- --------
Total equity (2,492) 1,444 (2,566)
------------- -------------- --------
Total equity and liabilities 9,591 15,285 10,568
============= ============== ========
Consolidated Cash Flow Statement
for the six months ended 30 November 2021
Unaudited Unaudited
six months six months 14 months
ended ended ended
30 November 30 September 31 May
2021 2020 2021
GBP000 GBP000 GBP000
Operating activities
Loss for the period before
tax (86) (558) (10,391)
Adjustments for:
Interest receivable - - (13)
Net finance costs 104 99 310
Impairment charge on property,
plant and equipment, inventory
and receivables (84) - 4,632
Dilapidations provision - - 690
Hedge ineffectiveness - 124 -
Depreciation of property,
plant and equipment 176 483 1,135
Amortisation of software 9 29 53
Amortisation of development
costs 14 10 33
Loss on disposal of property
plant and equipment - - 135
Foreign exchange rate
movements (1) (22) 37
Share-based payments 34 17 41
Defined benefit pension
contributions paid (165) (150) (355)
Group reorganisation costs (1,246) - -
paid
(Increase)/decrease in
inventories (566) 13 175
Decrease in receivables 779 1,711 2,036
(Decrease)/increase in
payables (442) (1,652) 1,009
Corporation tax received - - 129
------------- -------------- ----------
Net cash (outflow)/inflow
from operating activities (1,474) 104 (344)
------------- -------------- ----------
Investing activities
Purchase of property,
plant and equipment (197) (73) (183)
Purchase of software (4) - (3)
Development costs - - (5)
Net cash outflow from
investing activities (201) (73) (191)
------------- -------------- ----------
Financing activities
Interest received - - 13
Interest paid (94) (77) (261)
Net invoice finance drawdown/(repaid) 1,011 301 (1,202)
New share capital issued - - 3,312
Proceeds from convertible
loan - - 200
Finance lease payments (274) (208) (946)
Net cash inflow from financing
activities 643 16 1,116
------------- -------------- ----------
Net (decrease)/increase
in cash and cash equivalents (1,032) 47 581
Cash and cash equivalents
at the start of the period 1,038 457 457
Impact of foreign exchange
rate movements - 1 -
Cash and cash equivalents
at the end of the period 6 505 1,038
============= ============== ==========
Cash and cash equivalents
compromise:
Cash at bank 6 505 1,038
============= ============== ==========
Consolidated Statement of Changes in Equity
for the six months ended 30 November 2021
Capital
redemption Hedging Retained
Share capital Share premium reserve reserve earnings Total equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2020 1,990 1,269 109 (299) (524) 2,545
Loss for the period - - - - (662) (662)
Other comprehensive
income/(expense) for
the period net of
tax - - - 39 (495) (456)
-------------- -------------- ------------ --------- ----------- --------------
Total comprehensive
income/(expense) - - - 39 (1,157) (1,118)
Share-based payments - - - - 17 17
Deferred tax on share-based - - - - - -
payments
Total of transactions
with shareholders - - - - 17 17
At 30 September 2020 1,990 1,269 109 (260) (1,664) 1,444
Loss for the period - - - - (8,912) (8,912)
Other comprehensive
income for the period
net of tax - - - 478 965 1,443
-------------- -------------- ------------ --------- ----------- --------------
Total comprehensive
income/(expense) - - - 478 (7,947) (7,469)
New share capital
issued 61 3,451 - - - 3,512
Share-based payments - - - - 24 24
Deferred tax on share-based
payments - - - - (77) (77)
-------------- -------------- ------------ --------- ----------- --------------
Total of transactions
with shareholders 61 3,451 - - (53) 3,459
At 1 June 2021 2,051 4,720 109 218 (9,664) (2,566)
Profit for the period - - - - 102 102
Other comprehensive
expense for the period
net of tax - - - (52) (34) (86)
Total comprehensive
(expense)/income - - - (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)
============== ============== ============ ========= =========== ==============
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 14 months ended 31 May 2021 were approved by the
Board of Directors on 30 November 2021 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 14 months ended 31 May 2021.
No new standards or interpretations issued since 31 May 2021
have had a material impact on the financial statements of the
Group.
Going concern
The Group's detailed forecast for the year ending 31 May 2022
and budget for the year ending 31 May 2023 reflect the Director's
view of the most likely trading conditions. The forecast and budget
indicate that existing bank facilities are expected to remain
adequate.
The forecast and budget include revenue growth assumptions in
the second half of the year to 31 May 2022 and continuing into the
year ended 31 May 2023, which is needed to replace the lost
BorgWarner contracts. These assumptions include growth into new
E-commerce and consumer-led markets relating to fitness equipment
and cookware following the recent launch of the Iron Foundry
Weights (IFW) and Emba Cookware brands.
The Directors have applied reasonably foreseeable downside
sensitivities to the forecast and budget, which assumes that sales
growth from new E-commerce products is 50% lower than expectations,
automotive volumes remain at current low levels and non-automotive
sales growth is 50% lower than expectations. The budget, forecast
and sensitised scenario exclude the possible receipt of
compensation from BorgWarner and proceeds from the sales of
under-utilised machinery. 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 2022
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 GBP1.3m 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 new work can be secured to replace
the lost BorgWarner activity 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 14 months six months six months 14 months
ended ended ended ended ended ended
30 November 30 September 31 May 30 November 30 September 31 May
2021 2020 2021 2021 2020 2021
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Foundries 6,469 9,958 23,321 120 201 (1,931)
Engineering 1,544 1,086 3,123 193 21 191
------------- -------------- ------------ ------------- -------------- ------------
Segmental results 8,013 11,044 26,444 313 222 (1,740)
------------- -------------- ------------
Shared costs (345) (434) (1,161)
Non-underlying
items (Note
7) 50 (247) (7,193)
Net finance
costs (104) (99) (297)
Loss before
tax (86) (558) (10,391)
============= ============== ============
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 14 months
ended ended ended
30 November 30 September 31 May
2021 2020 2021
GBP000 GBP000 GBP000
Interest on bank financing facilities (23) (52) (103)
Interest expense on lease liabilities (71) (25) (158)
Net interest on defined benefit pension
liability (10) (22) (49)
------------- -------------- ----------
(104) (99) (310)
============= ============== ==========
4 Income tax expense
An estimated effective rate of tax for the six months to 30
November 2021 of 218.6% (30 September 2020: 18.6%) 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 14 months ended 31 May 2021.
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 14 months
six months ended six months ended
30 November ended 31 May
2021 30 September 2021
2020
GBP000 GBP000 GBP000
Profit/(loss) after tax for
basic earnings per share 102 (662) (9,574)
Non-underlying operating items (50) 247 7,193
Taxation effect of the above - - -
------------------ -------------- ----------
Profit/(loss) for underlying
earnings per share 52 (415) (2,381)
------------------ -------------- ----------
Unaudited Unaudited 14 months
six months ended six months ended
30 November ended 31 May
2021 30 September 2021
2020
000 000 000
Weighted average number of ordinary
shares 69,625 7,958 17,387
Adjustment to reflect dilutive
shares under option 3,581 217 3,798
------------------ -------------- ----------
Diluted weighted average number
of ordinary shares 73,206 8,175 21,185
------------------ -------------- ----------
There is no adjustment for the shares under option in the
diluted loss per share calculation for the six months ended 30
September 2020 and the 14 months ended 31 May 2021 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 September 31 May
2021 2020 2021
Salary increases n/a n/a n/a
Pension increases (post 1997) 3.2% 2.8% 3.1%
Discount rate 1.6% 1.4% 1.85%
Inflation assumption - RPI 3.3% 2.85% 3.2%
Inflation assumption - CPI 2.6% 1.95% 2.5%
The demographic assumptions used for 30 November 2021 were the
same as those used at 31 May 2021, 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 2022
are GBP335,000. The next triennial valuation is due as at 31 March
2022.
The defined benefit scheme funding has changed under IAS 19 as
follows:
Unaudited Unaudited
30 November 30 September 31 May
Funding status 2021 2020 2021
GBP000 GBP000 GBP000
Scheme assets at end of period 16,156 15,789 15,601
Benefit obligations at end of
period (17,233) (18,231) (16,791)
----------------------- -------------------------- ---------
Deficit in scheme (1,077) (2,442) (1,190)
Related deferred tax asset 269 415 297
----------------------- -------------------------- ---------
Net pension liability (808) (2,027) (893)
======================= ========================== =========
The reduction in the net pension liability since 31 May 2021 is
mainly due to employer contributions and investment returns
partially offset by an increase in the value of liabilities as a
consequence of a reduction in bond yields reducing the discount
rate.
7 Non-underlying items
Unaudited Unaudited 14 months
six months six months ended
ended ended 31 May
30 November 30 September 2021
2021 2020
GBP000 GBP000 GBP000
Group reorganisation - 106 1,310
Adviser costs relating to corporate
restructuring - - 520
Hedge ineffectiveness - 124 -
Impairment of property, plant
and equipment - - 3,809
Impairment of inventory and receivables (84) - 823
Dilapidations provision - - 690
Share-based payment charge 34 17 41
------------- -------------- ----------
Non-underlying operating income/(costs) (50) 247 7,193
Taxation
- tax effect of non-underlying - - -
costs
(50) 247 7,193
============= ============== ============
In the six months ended 30 November 2021, the Group secured the
recovery of receivables of GBP84,000 that had previously been
impaired.
8 Net debt
Unaudited Unaudited
30 November 30 September 31 May
2021 2020 2021
GBP000 GBP000 GBP000
Financial liabilities
Net cash (6) (505) (1,038)
Lease liabilities 1,065 1,003 1,050
Invoice finance liability 1,508 2,261 665
------------- -------------- ---------
Net debt due in less than one
year 2,567 2,759 677
------------- -------------- ---------
Lease liabilities due in more
than one year 1,007 1,941 1,158
Net debt 3,574 4,700 1,835
============= ============== =========
9 Interim report
This interim results statement is available on the Group's
website, www.chamberlin.co.uk.
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