Chamberlin PLC (LON:CMH) said it expects to report a loss for the extended accounting period ended 31 May 2021, but believes the substantial majority of its restructuring costs and non-cash write-downs will be accounted for by then.
As a result, the specialist castings and engineering firm said it is well positioned to make a strong recovery in the new financial year and anticipates a return to profitability.
Chamberlin launched a restructuring of the company following the loss of a major contract with BorgWarner in late 2020, and has since carried out a number of business development initiatives which among other things have reduced reliance on the automotive sector. It has begun to focus on new consumer products which it intends to distribute direct-to-consumer through e-commerce.
Chamberlin highlighted that it has already seen considerable interest in its growing gym equipment range and is now preparing to launch a range of premium quality cast iron cookware. The firm noted that it is presently the only British foundry producing many of the new consumer products.
It noted that the Petrel unit, a supplier of safety lighting, is broadening its scope to include product hire and support services. The Russel Ductile Castings business was said to be outperforming internal expectations, driven by a lack of domestic competition for niche, low-volume, large capacity castings. The company said it sees scope for further growth and improved profitability for the unit in the current financial year.
Overall, in regard to outlook it said: “With revenues now stable, costs realigned to reflect the current operating base across the group and exciting new potential growth opportunities, the board anticipates that Chamberlin will see a return to profitability in the current financial year.”