Chamberlin losses double amidst 'toughened' trading conditions

Castings and engineering firm Chamberlin warned investors on Tuesday that toughened market conditions had offset much of the benefits from the disposal of Exidor in its last trading year.

Chamberlin noted that, while its balance sheet had been strengthened and that its pension liability had been "significantly reduced" as a result of the £10m sale, significant reductions in customer schedules in the European turbocharger market, uncertainties relating to Brexit and a slowdown in its Petrel business had resulted in tougher-than-expected trading conditions across the group.

The AIM-listed group reminded shareholders that in the year ended 31 March 2018, it had recorded a loss from continuing operations of £300,000 - the same as it had done in just the first half of the 2019 trading year and the same as it expects to record in the second half.

In order to battle the adverse trading conditions, Chamberlin implemented several cost reduction measures and completed a reassessment of the likely outturn in the second half.

Chamberlin expects to see the benefits of its cost reduction measures in the year ended 31 March 2020.

As of 0830 GMT, Chamberlin shares had sunk 16.50% to 56.36p.