Chamberlin back to full year growth
Manufacturer Chamberlin has returned to health this morning with full-year profitability. The Walsall-based company said revenues soared 40 per cent to £39.8m, allowing it to return to the black for the year ending 31 March 2011.
Chairman Tom Brown described the past 12 months as a "turning point" for the foundry and engineering business. He said the positive results were "driven by continuing recovery across core business".
Underlying operating profit was £900,000, compared with a loss of £895,000 in 2010. The 2011 figures represent a 306 per cent improvement.
Statutory operating profit was £682,000 compared with a £1.04m loss in the previous year. Underlying pre-tax profit was £800,000, an improvement on a pre-tax loss of £1.02m in 2010.
Cash generated from operations increased to £1.791m (2010: £500,000).
Net debt was reduced to £2.9m – a drop from £3.45m the previous year – which was the company's lowest level since March 2008.
Foundry activities experienced continuing recovery through the period, said Chamberlin, as light castings were now at 100 per cent of pre-recession levels. Revenue in its heavy castings division also tipped above pre-recession levels in the final quarter of the year.
In February 2011, Chamberlin bought West Midlands engineering business Jebron, which it expects to add more than £1m of profitable annual sales.
Brown said: "Demand recovered throughout the year and the final quarter saw volumes at the group's Walsall and Scunthorpe foundries match or exceed pre-recession levels. Production at Chamberlin's third foundry at Leicester was at 85 per cent of pre-recession levels but volumes are continuing to build.
"Chamberlin is well positioned for growth, helped by the modernisation and investment programme completed prior to recession and we expect the group to make progress over the financial year. With demand for our products linked to global engineering activity, we see powerful long term trends favouring our business."
He added that the board expected "continued growth" from the company over the next year.
