Chamberlin reports operating loss as emissions regulation, Brexit uncertainty weigh

Writer, Stock Market Wire
Tuesday, February 5, 2019 - 08:43

Castings and engineering group Chamberlin reported Tuesday a first-half operating loss, citing tougher trading conditions owing recently implemented regulatory measures and Brexit uncertainty.

The underlying operating loss in the fiscal year to 31 March 2018 and in the first half of the year was £0.3m.

Current trading conditions had toughened as customer schedules for the European turbocharger market suffered significant reductions, partly related to the disturbance to production schedules resulting from Worldwide Harmonised Light Vehicle Test Procedure emissions testing regulatory programme, the company said.

The also blamed uncertainties relating to Brexit, and a slowdown in the petrel business for the loss.

The company said it had implemented a number of cost reduction measures and also completed a reassessment of the likely outturn in the second half of the current financial year.

The sale of Exidor for £10m cash had strengthened Chamberlin's balance sheet and also significantly reduced the group's pension liability, the company said.

After one-off contribution of £2.5m from the cash proceeds from the sale, the adjusted reported pension liability as at 30 September 2018 was £1.5m, well below the £4.0m reported in September.

It company said anticipated that the loss in second half of the year would be £0.3m and added that the benefits of the cost reduction measures would be seen in the next financial year.

At 8:43am: (LON:CMH) Chamberlin PLC share price was -10p at 57.5p

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