Insider Media Limited

Walsall-based Chamberlin is on the acquisitions trail after returning to profit. The iron castings and engineered products supplier says it is looking for complementary businesses which fit its criteria of "difficult things done well".

In its half-year results to 30 September 2010, Chamberlin reported "ongoing improvement in sales trend" with revenues up 29 per cent to £18.3m (2009: £14.2m). Underlying operating profit was £222,000 - there was a £635,000 loss in 2009.

Statutory operating profit was £190,000 with a loss of £539,000 in 2009. Underlying profit before tax was £163,000. A £692,000 loss was posted in 2009. Statutory profit before tax was £91,000. The 2009 figure was a £713,000 loss.

Chamberlin chairman Tom Brown said: "I am very pleased to report Chamberlin's return to profitability. Results for the half-year show sales up by 29 per cent over the same period last year to £18.3m. While that is still approximately 20 per cent below the group's pre-recession first half peak of £23.5m in 2008, we expect revenues to continue to build.

"The modernisation programme we completed before the downturn and the measures we took during recession, to reduce costs and further improve efficiencies are benefiting Chamberlin's competitive position as the trading backdrop improves. We are now winning business as engineering demand recovers both in the UK and globally.

"In addition, with the platform for growth in place, we are also returning to our aim of acquiring complementary businesses, fitting our criteria of 'difficult things done well'.

"We have experienced recovery across almost all our activities and with continuing evidence of growth and our expectations of new orders we believe that the group is likely to deliver pre-tax profits for the full year ahead of current market forecasts."

Positive operating cash flow was £383,000 at the end of the half-year with underlying earnings per share of 1.28p. Basic earnings per share was 0.58p.

The company said foundry activity recovered strongly during the first-half while its heavy castings trade was at 90 per cent of pre-recession levels. Light castings traded at 80 per cent of pre-recession levels.

Full-year results are anticipated to be ahead of current market expectations, said Chamberlin.