Chamberlin PLC (LON:CMH) shares jumped on Thursday as the casting and engineering group said it has delivered "a significantly improved second-half performance", reflecting the progress made towards resolving technical problems at its new machine shop.
The AIM-listed firm said its underlying earnings before interest and tax (EBIT) moved from a loss in the first half to a profit in the second and is expected to be approximately £0.4mln for the full year, which is ahead of current market expectations.
The group added that revenues in the second half were 10% higher than in the first half and are expected to total £37.7mln for the year, up 17% from £32.1mln a year earlier.
Chamberlin said the technical issues at the firm’s new machining facility continue to improve, and production of petrol engine turbocharger components at the Walsall foundry is progressively increasing.
The firm added that new products for machining are also being introduced.
Chamberlin intends to publish its preliminary results in early June 2018.
In late morning trading, the company’s shares jumped 15.3% to 71.5p.