(RTTNews) - Iron castings producer Chamberlin Plc (CMH.L: News ) Friday reported a loss for the first half, compared to a profit last year, as revenues plunged 40% due to aggressive de-stocking in the manufacturing sector. The company said it expects to show improvement in the second half.

Loss before tax from continuing operations for the half year was GBP 713 thousand compared to a profit of GBP 1.02 million last year. Last year's results were restated for deferred tax charge.

Loss attributable to equity holders of the parent company was GBP 626 thousand or 8.42 pence per share, compared to a profit of GBP 263 thousand or 10.5 pence per share in the comparable period.

Latest period results included exceptional restructuring costs of GBP 236 thousand, which were incurred as the business was restructured in response to the downturn, and unrealised foreign currency income of GBP 332 thousand.

Underlying pre-tax loss, which excludes excecptional items, was GBP 809 thousand, compared to a profit of GBP 803 million in the previous year. Underlying loss was GBP 695 thousand or 9.35 pence per share, compared with a profit of GBP 640 thousand or 8.5 pence per share last year.

Half-yearly revenues plunged 40% to GBP 14.22 million from GBP 23.54 million last year, due to aggressive de-stocking in manufacturing sector.
Commenting on the results, chairman Tom Brown stated, "While the six months of the current financial year have been very demanding, set against recession and aggressive de-stocking in the manufacturing sector, I believe that we have weathered the storm in better shape than many in our sector."

Chamberlin noted that its Walsall foundry has recently received approval to supply production volumes of the first castings and expects begin a gradual supply increase during the fourth quarter of the financial year. This parts, together with others currently in development, are expected to account for over GBP 3 million of sales in the 2011/12 financial year.

The company said demand has largely stabilised in most areas of the business and some sectors appear to be showing signs of recovery, although the trading environment will continue to be challenging. Chamberlin expects to deliver improved results in the second half of the current financial year although, given the operationally geared nature of the business, the volume of orders actually achieved will greatly influence the exact outcome.

CMH closed Thursday's regular trading at 52.50 pence per share on the London Stock Exchange.

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by RTT Staff Writer

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