Chamberlin PLC’s (LON:CMH) shares dropped as the company said it expects a “small” full-year loss despite restructuring and expectations of a better second half.
The engineering products supplier has almost finished a major restructuring programme, axing almost a third of its employees, which is expected to lift returns in the second half alongside new contracts and new products.
Operating profit margins in the second half to 31 March are forecast to be 3% after being negative in the past year, which the company said would allow it to reduce net debt, although it still remains cautious until there is more clarity on post-Brexit terms of trade with the EU.
But in the six months to September 30, underlying revenue plunged 26% year-on-year to £12.8mln, while losses before tax widened 67% to £1.8mln. Debt nearly halved at £6mln.
“The restructuring is now, in the main, complete. Looking ahead the board is cautiously optimistic that the lower cost base and prospective revenue gains will benefit Chamberlin over the years ahead,” said chairman Keith Butler-Wheelhouse in a release.
Shares dropped 10% to 23p on Monday morning.