Chamberlin on course for recovery after strong start to financial year
Specialist castings and engineering group Chamberlin has made a strong start to its latest financial year as it delivered a full-year profit after tax for the first time in five years.
The Walsall business expects to report revenues for the year to May 31 2022 of about £16.5 million, down from £22.7 million in 2021.
However, adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, is expected to reach £200,000, up by 112 per cent from losses of £1.7 million.
Its Petrel and Russell Ductile Castings businesses have recovered well and are in strong demand, and therefore Chamberlin expects record levels of revenue and operating profit.
However, there has been slower recovered at Chamberlin & Hill Castings in Walsall which continues to operate at a loss.
The business has suffered due to escalating raw material costs, supply chain shortages and trading conditions.
Looking ahead, the business said: "Whilst the overall economic climate remains uncertain, in particular rising inflation impacting consumer spending, the board is pleased to report that all three operating divisions have made a strong start to FY2023 with higher than expected levels of orders for Q1 2023 and strong ongoing order books.
"The group is well positioned to continue its recovery and expects to return to a more sustainable level of profitability, having taken the appropriate steps to reduce its cost base and invest in new growth strategies for each business.
"This recovery is further supported by the group's protection from any current or medium term energy price increases, having secured a five-year fixed price contract for electricity in March 2020, placing the group in an increasingly competitive position to win new orders."
