RCS - Chamberlin PLC - Corporate Update

ChamberlinAnnouncement

16/12/2022 14:00

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RNS Number : 0467K  Chamberlin PLC  16 December 2022

 

16 December 2022

Chamberlin plc
("Chamberlin", the "Company" or the "Group")

 

Corporate Update

 

Chamberlin plc (AIM: CMH.L), the specialist castings and engineering group,
announces the following corporate update.

 

Headlines

 

·      Russell Ductile Castings returns best ever monthly performance,
exceeding £1 million monthly revenue for the first time, in November 2022

·      Investment in new plant and equipment at RDC now complete

·      Group defined benefit pension scheme now in a surplus position

 

Russell Ductile Castings ("RDC")

 

As previously announced, RDC, the Group's Scunthorpe based foundry and the
UK's leading provider of large, technically challenging Cast Iron products,
has now completed a programme of investment in new plant and equipment which
strengthens its position as a key supplier to the renewable offshore energy,
energy generation and construction industries.

 

This investment is a key milestone for RDC and positions the business as the
UKs largest foundry to provide castings ranging from 100kg to 7000kg,
increasing RDC's ability to produce large castings over three tons by around
30%. The rapidly growing trend for localised supply chains and manufacturing
re-shoring, coupled with RDC's focus on the renewable energy market, has seen
orders books reach record levels in the last 12 months.

 

Pleasingly, RDC exceeded £1.0 million of revenue in November 2022 for the
first time and reported an order book of around £4.0 million, remaining on
track to deliver to the Board's expectations. This strong financial
performance, along with a strong sales enquiry pipeline of approximately £17
million, underpins the decision to make the investment and capitalise on
market opportunities.

 

Group Pension Scheme

 

The Group has one defined benefit pension scheme, which is closed to future
accrual. As reported in the Company's Final Results in November 2022, the
defined benefit pension scheme moved from a liability position of £1.2
million at 31 May 2021 to a £0.1 million surplus at 31 May 2022, as reduced
liabilities arising from an increase in bond yields and Group contributions of
£0.9 million more than offset a reduction in the market value of scheme
assets.

 

The triennial valuation as at 31 March 2022 is currently in progress and the
Company has appointed BDO UK LLP to advise the Chamberlin Board. The Company
is seeking to ensure that current market conditions, the Group's improved
covenant strength and the significant one-off payment of £0.6 million made in
May 2022 from the RDC property sale and leaseback, are fully reflected in the
new deficit valuation and any subsequent recovery plan payments required by
the Company. This gives the Board confidence of a positive outcome and the
ability to ensure that any ongoing deficit is minimised.

 

Enquiries:

 

 Chamberlin plc                                            T: 01922 707100

 Kevin Price, Chief Executive

 Alan Tomlinson, Finance Director

  Cenkos Securities plc (Nominated Adviser and Broker)     T: 020 7397 8900

 Katy Birkin

 Stephen Keys

 George Lawson

 Peterhouse Capital Limited (Joint Broker)                 T: 020 7469 0930

 Lucy Williams

 Duncan Vasey

 

 

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