REG - Chesterfield Special - 2026 Interim Results
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RNS Number : 9836E Chesterfield Special Cylinders Hdgs 20 May 2026
20 May 2026
Chesterfield Special Cylinders Holdings plc
("CSC " or the "Company")
2026 Interim Results
Chesterfield Special Cylinders Holdings plc (AIM: CSC) announces its unaudited
interim results for the 26 weeks to 28 March 2026 ("the period").
Financial results
H1 FY26 H1 FY25 FY25
£m £m £m
Revenue 6.4 5.4 16.6
Gross profit(1) 2.1 1.4 6.4
Adjusted EBITDA(2) (0.6) (1.3) 0.8
Adjusted operating (loss)/profit(3) (1.0) (1.7) 0.0
Loss before tax (1.1) (2.5) (0.8)
Cash balance 1.1 1.9 2.1
Net cash(4) 0.6 1.4 1.8
Pence Pence Pence
Basic loss per share (2.8) (6.4) (1.6)
Adjusted loss per share(5) (2.8) (5.0) (0.0)
1 A restatement has been made to reflect a re-classification of labour costs
from cost of sales to administration expenses. See Note 14
2 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation
and other exceptional costs
3 Adjusted operating loss is operating loss before disposal of discontinued
operation, amortisation and other exceptional costs
4 Net cash comprises cash and cash equivalents, borrowings, asset finance
lease liabilities and right of use asset lease liabilities
5 Adjusted loss per share is loss per share before disposal of discontinued
operations, exceptional costs and theoretical tax adjustments
Highlights
● First-half trading broadly in line with management expectations, with revenue
of £6.4 million (2025: £5.4 million) and an adjusted EBITDA loss of £0.6
million (2025: loss £1.3 million)
● Defence revenue of £5.0 million (2025: £4.4 million) reflects the phasing of
newbuild contract milestones weighted heavily towards the second half of the
year, and Integrity Management naval deployments
● Completion milestones delivered for UK submarine and surface ship newbuild
programmes. Technical preparation commenced for SSN-A (AUKUS) to enable early
contract milestone delivery from FY27
● Order book strengthened by key overseas defence contract wins, while existing
overseas submarine and surface ship contracts progressed for Australian,
Canadian, Spanish and French naval customers
● US Navy initial product trials completed in the first half of the year, with
manufacturing stages on track to commence in the second half towards first
product delivery in 2027
● Integrity Management revenue of £1.3 million (2025: £2.1 million) follows
record FY25 performance. Some UK naval deployments originally expected in FY26
postponed into FY27 due to delayed docking schedules
● First order secured for Integrity Management services on overseas naval
submarines in the first half, with European deployment in the second half and
further overseas opportunities in the pipeline for FY27
● Hydrogen revenue of £0.9 million (2025: £0.7 million) reflects in-factory
lifecycle support services for static storage and road trailers
● Continued delays to the rollout of UK Hydrogen Allocation Round (HAR)
projects. Any related contract wins in the second half will be too late to
benefit FY26 results
● Cautious cost management measures are in place to help mitigate the impact of
delays, and further cost management steps are available if delays continue
● Successful renewal of property lease provides long-term security for Sheffield
manufacturing operations and results in a revised carrying value of land and
building assets from £2.6 million to £4.9 million
Outlook
● Profitable second half supports expected full-year revenue and adjusted EBITDA
at similar levels to prior year (2025: revenue £16.6 million, adjusted EBITDA
£0.8 million), in line with 30 April 2026 trading update
● Uncertainty remains around the rollout of UK government-backed hydrogen
projects included in our mid-term growth targets, although HAR contract awards
are still possible in FY26
● Overall, the outlook and prospects for the Company are underpinned by a robust
defence order book and strong contract pipeline across UK and overseas naval
newbuild programmes
Chris Walters, Chief Executive of Chesterfield Special Cylinders Holdings plc,
commented:
"First-half trading was broadly in line with our expectations, and we still
anticipate a strong and profitable second-half performance, supporting FY26
market forecasts with full-year revenue and adjusted EBITDA at levels similar
to FY25.
Following a record full-year Integrity Management performance in FY25, some UK
naval deployments originally expected in FY26 have been postponed into FY27
due to delayed docking schedules. However, we were pleased to secure our first
ever Integrity Management contract for overseas naval submarines in the first
half, with European deployments starting early in the second half.
The continued slippage of hydrogen projects under the UK government's HAR
programme has been frustrating and disruptive. While uncertainty remains
around projects included in our mid-term growth targets, HAR contract awards
are still possible in FY26, and we remain actively engaged with hydrogen
customers and operationally prepared to undertake large-scale storage
projects.
Overall, our outlook and prospects are underpinned by a robust defence order
book and strong pipeline of opportunities across UK and overseas naval
newbuild programmes."
For further information, please contact:
Chesterfield Special Cylinders Holdings plc Tel: 0333 015 0710
Chris Walters, Chief Executive company.secretary@csc-holdings.com (about%3Ablank)
Sally Millen, Director of Finance
Singer Capital Markets (Nomad and Broker) Tel: 0207 496 3000
Rick Thompson / Peter Steel / Carl Diebitsch
COMPANY DESCRIPTION www.csc-holdings.com (http://www.csc-holdings.com/) and
www.chesterfieldcylinders.com (http://www.chesterfieldcylinders.com)
Chesterfield Special Cylinders is a world-leading designer and manufacturer of
high-pressure gas storage and transportation systems, used principally in
safety-critical defence and hydrogen energy applications, and provides
inspection, testing and recertification services throughout the system
lifecycle.
Business review
In the first half of FY26, trading for Chesterfield Special Cylinders ("CSC")
was broadly in line with management's expectations, with revenue of £6.4
million (2025: £5.4 million) and an adjusted EBITDA loss of £0.6 million
after central costs (2025: loss £1.3 million).
Defence
Defence revenue of £5.0 million (2025: £4.4 million) reflects the phasing of
defence contracts, weighted heavily towards the second half of the year, and
Integrity Management naval deployments.
Completion milestones for the UK Dreadnought submarine and Type 26 frigate
newbuild programmes were delivered during the first half of the year.
Technical preparation also commenced for the SSN-A (AUKUS) Astute replacement
programme, to enable early contract milestone delivery in FY27.
Progress continued during the first half with the delivery of contract
milestones for existing overseas submarine and surface ship projects for
Australian, Canadian, Spanish and French naval customers.
Initial product trials were completed in the first half of the year for US
Navy supplier qualification, with manufacturing stages on track to commence in
the second half of the year towards first product delivery in 2027.
Good strategic progress is being made in defence, where the order book was
strengthened by key overseas submarine newbuild contract awards in the first
half and early in the second half, including the previously announced order
from French prime contractor Naval Group for the Scorpène-class submarine
programme.
Integrity Management services
Following record full-year performance in FY25, Integrity Management services
revenue was £1.3 million (2025: £2.1 million) in the first half, with some
UK naval deployments originally expected in FY26 postponed into FY27 due to
delayed fleet docking schedules.
At the end of the first half, we were pleased to secure our first order for
Integrity Management services on overseas naval submarines, with deployment
early in the second half of FY26. Further overseas naval Integrity Management
opportunities are in the pipeline for FY27.
Hydrogen
Hydrogen revenue of £0.9 million (2025: £0.7 million) reflects in-factory
lifecycle support services for static storage and road trailers.
Continued delays to the rollout of projects under the UK government's Hydrogen
Allocation Rounds (HAR) are frustrating and disruptive for CSC and the wider
supply chain.
Although the UK government continues to affirm its commitment to domestic
green hydrogen production over the longer term, the delays to HAR projects
reflect policy and regulatory uncertainty, the inflationary pressure on
project economics due to high energy prices and borrowing costs, grid
connection constraints and the slower-than-anticipated progression of customer
offtake agreements.
Hydrogen contract awards are still possible in the second half of the year,
however they will be too late to benefit FY26 results.
Post period end property lease renewal
On 6 May 2026, the Company announced that it had successfully renewed the
lease on three acres of land adjacent to its existing freehold site in
Sheffield. The lease renewal provides long-term security for the Company's
manufacturing operations and has resulted in a revised carrying value of land
and building assets from £2.6 million to £4.9 million.
Outlook
The Company still anticipates a profitable second half, supporting full-year
revenue and adjusted EBITDA performance at similar levels to the previous year
(2025: revenue of £16.6 million, adjusted EBITDA of £0.8 million).
While uncertainty remains around the rollout of UK hydrogen projects included
within our mid-term growth targets, we remain actively engaged with customers
and operationally prepared to undertake large-scale hydrogen storage projects.
Cautious cost management measures are in place to help mitigate the impact of
these delays, and further cost management steps are available if the delays
continue.
Overall, the outlook and prospects for the Company are underpinned by a robust
defence order book and strong pipeline of opportunities across UK and overseas
submarine and surface ship newbuild programmes.
Chris Walters
Chief Executive
19 May 2026
Financial review
Revenue and profitability
Revenue of £6.4 million (2025: £5.4 million) in the first half of FY25
generated gross profit of £2.1 million at 33% margin (2025 restated: £1.4
million at 27% margin).
Overhead costs of £3.2 million in the period (2025 restated: £3.2 million)
resulted in an adjusted operating loss of £1.0 million (2025: loss £1.7
million).
Allowing for depreciation charges of £0.4 million (2025: £0.4 million), the
adjusted EBITDA loss was £0.6 million (2025: loss of £1.3 million).
Exceptional costs of £44,000 were incurred in the period, being principally
advisory fees relating to the renewal of the Sheffield property lease (2025:
£0.7 million, reflecting cost related to disposal of the PMC division), see
Note 5.
Operating cash flow and capital expenditure
Operating cash outflow in the period was £0.7 million (2025: outflow £0.5
million), arising primarily from an adjusted EBITDA loss of £0.6 million
(2025: adjusted EBITDA loss of £1.3 million).
Capital expenditure in the period was £0.1 million (2025: £0.2 million),
incurred principally for the replacement and maintenance of site facilities
and equipment.
Cash balances, borrowings and liquidity
The cash balance at the end of the period was £1.1 million (2025: £1.9
million), reflecting the operating cash outflow and capital expenditure in the
period. On 19 May 2026, the cash balance was £2.3 million.
The net cash position of £0.6 million (2025: £1.4 million) comprised the
period-end cash balance less borrowings of £nil (2025: £nil) and lease
liabilities totalling £0.5 million (2025: £0.4 million).
Impairment reviews
The Company tests periodically for impairment, in accordance with IAS 36, if
there are indicators that tangible fixed assets might be impaired. An
impairment review was undertaken for CSC as at 28 March 2026. The review
concluded that no impairment was required in these Interim Results.
Events after the balance sheet date
On 6 May 2026, the Company announced that it had successfully renewed the
lease on three acres of land adjacent to its existing freehold site in
Sheffield, resulting in a material change to the value of property assets on
the Company's balance sheet.
The previously remaining leasehold term at the end of September 2025 was less
than twenty years and the total value of the Company's land and building
assets at the end of September 2025 was £2.6 million.
The new 125-year lease provides long-term security for the Company's
manufacturing operations and results in a revised carrying value of the
combined property asset of £4.9 million, comprising the existing freehold of
£2.6 million and a £2.3 million right-of-use asset for the new lease (see
Note 15). This carrying value is in line with a valuation of the Company's
land and building assets of £4.9 million, as assessed by independent
chartered surveyors, Knight Frank, in March 2026.
Chris Walters
Chief Executive
19 May 2026
Condensed Consolidated Statement of Comprehensive Income
For the 26 weeks ended 28 March 2026
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
*Restated
Notes £'000 £'000 £'000
4 6,363 5,383 16,583
Revenue
Cost of sales (4,234) (3,950) (10,197)
Gross profit 2,129 1,433 6,386
Administration expenses (3,167) (3,169) (6,343)
Operating (loss) / profit before disposal of discontinued operation and (1,038) (1,736) 43
exceptional costs
Separately disclosed items of administrative expenses: (44) (716) (790)
Exceptional costs 5
Operating loss (1,082) (2,452) (747)
Finance costs (35) (26) (62)
Loss before taxation (1,117) (2,478) (809)
Taxation 6 22 5 192
Loss for the period from continuing operations (1,095) (2,473) (617)
Profit for the period from discontinued operations 10 - 263 263
Loss for the period attributable to the owners of the parent (1,095) (2,210) (354)
1 (3) 2
Other comprehensive expense to be reclassified to profit or loss in subsequent
periods:
Currency exchange differences on translation of foreign operations
Total comprehensive expense for the period attributable to the owners of the (1,094) (2,213) (352)
parent
(Loss) / earnings per share - basic and diluted
From continuing operations 7 (2.8)p (6.4)p (1.6)p
From discontinued operations 7 - 0.7p 0.7p
From total loss for the period 7 (2.8)p (5.7)p (0.9)p
*The condensed consolidated statement of comprehensive income for the prior
26-week period has been restated (see Note 14) to reflect a re-classification
of labour costs from cost of sales to administration expenses. There is no
impact on the overall result for the financial period. This re-classification
was already applied in the audited statutory accounts for the 52 weeks ended
27 September 2025. In addition, the profit on disposal of the discontinued
operation has been included within the profit for the period from discontinued
operations in line with the treatment applied in the audited statutory
accounts for the 52 weeks ended 27 September 2025 (see Note 14).
Condensed Consolidated Statement of Financial Position
As at 28 March 2026
Unaudited Unaudited
28 March 29 March Audited
2026 2025 27 September
2025
Notes £'000 £'000 £'000
Non-current assets *Restated
Intangible assets - - -
Property, plant and equipment and right of use assets 6,336 6,625 6,382
Contract assets 74 291 -
Deferred tax asset 803 626 803
7,213 7,542 7,185
Current assets
Inventories 2,576 2,699 2,618
Trade and other receivables 4,005 3,161 5,568
Cash and cash equivalents 9 1,130 1,857 2,130
7,711 7,717 10,316
Total assets 14,924 15,259 17,501
Current liabilities
Trade and other payables (3,464) (4,306) (5,492)
Lease liabilities 9 (229) (218) (219)
(3,693) (4,524) (5,711)
Non-current liabilities
Trade and other payables (721) (999) (274)
Lease liabilities 9 (253) (217) (143)
Deferred tax liabilities (535) (567) (557)
(1,509) (1,783) (974)
Total liabilities (5,202) (6,307) (6,685)
Net assets 9,722 8,952 10,816
Equity
Share capital 11 1,933 1,933 1,933
Share premium account 11 1,699 1,699 1,699
Translation reserve (261) (267) (262)
Retained earnings 6,351 5,587 7,446
Total equity 9,722 8,952 10,816
*The condensed consolidated statement of financial position as at 29 March
2025 has been restated (see Note 14) to reflect a re-classification of
contract balances and deferred income from current to non-current. The
restatement has had nil impact on the result for the period and nil impact on
net asset at the balance sheet date. This re-classification was already
applied in the audited statutory accounts as at 27 September 2025.
Condensed Consolidated Statement of Changes in Equity
For the 26 weeks ended 28 March 2026
Share Share Translation reserve Retained earnings Total
capital premium equity
account
£'000 £'000 £'000 £'000 £'000
Balance at 27 September 2025 (audited) 1,933 1,699 (262) 7,446 10,816
Loss for the period - - - (1,095) (1,095)
Exchange differences arising on retranslation of foreign operations - - 1 - 1
Total comprehensive income / (expense) - - 1 (1,095) (1,094)
Balance at 28 March 2026 (unaudited) 1,933 1,699 (261) 6,351 9,722
For the 26 weeks ended 29 March 2025
Share Share Translation reserve Retained earnings Total
capital premium equity
account
£'000 £'000 £'000 £'000 £'000
Balance at 28 September 2024 (audited) 1,933 1,699 (264) 7,793 11,161
Share based payments - continuing operations - - - 4 4
Transactions with owners - - - 4 4
Loss for the period - - - (2,210)
(2,210)
Exchange differences arising on retranslation of foreign operations - - (3) - (3)
Total comprehensive expense - - (3) (2,210) (2,213)
Balance at 29 March 2025 (unaudited) 1,933 1,699 (267) 5,587 8,952
Condensed Consolidated Statement of Changes in Equity (continued)
For the 52 weeks ended 27 September 2025
Share Share Translation reserve Total
capital premium Retained earnings equity
account
£'000 £'000 £'000 £'000 £'000
Balance at 28 September 2024 (audited) 1,933 1,699 (264) 7,793 11,161
Share based payments - continuing operations - - - 7 7
Transactions with owners - - - 7 7
Loss for the period - - - (354) (354)
Exchange differences arising on translating foreign operations - - 2 2
-
Total comprehensive income / (expense) - - 2 (354) (352)
Balance at 27 September 2025 (audited) 1,933 1,699 (262) 7,446 10,816
Condensed Consolidated Cash Flow Statement
For the 26 weeks ended 28 March 2026
Notes Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Operating activities
Operating cashflow 8 (682) (453) 266
Exceptional costs (44) (716) (790)
Finance costs paid (35) (26) (62)
Net cash outflow from operating activities (761) (1,195) (586)
Investing activities
Proceeds from sale of PMC division - 4,392 4,392
Purchase of property, plant and equipment (128) (203) (302)
Net cash (outflow) / inflow from investing activities (128) 4,189 4,090
Net cash (outflow) / inflow before financing (889) 2,994 3,504
Financing activities
Repayment of borrowings - (1,000) (1,000)
Repayment of lease liabilities (111) (123) (262)
Net cash outflow from financing activities (111) (1,123) (1,262)
Net (decrease) / increase in cash and cash equivalents (1,000) 1,871 2,242
Cash and cash equivalents at beginning of period 2,130 470 116
Cash and cash equivalents at end of period 1,130 2,341 2,358
Cash and cash equivalents of asset group disposed - (484) (228)
Cash and cash equivalents at end of period 1,130 1,857 2,130
Lease liabilities (482) (435) (362)
Net Cash 9 648 1,422 1,768
The cash movements of the discontinued operation (previously a disposal group
held for sale) in the comparative periods are detailed in Note 10.
Notes to the Condensed Consolidated Interim Financial Statements
1. General information
Chesterfield Special Cylinders Holdings plc is incorporated in England and
Wales and is quoted on AIM, a market operated by the London Stock Exchange.
These unaudited interim condensed consolidated financial statements for the 26
weeks ended 28 March 2026 were approved by the Board of Directors on 19 May
2026.
These financial statements may contain certain statements about the outlook
for Chesterfield Special Cylinders Holdings plc. Although the Directors
believe their expectations are based on reasonable assumptions, any statements
about the outlook may be influenced by factors that could cause actual
outcomes and results to be materially different.
2. Basis of preparation
The Company's unaudited interim results for the 26 weeks ended 28 March 2026
("Interim Results") are prepared in accordance with the Company's accounting
policies which are based on the recognition and measurement principles of the
UK-adopted International Accounting Standards in conformity with the
requirements of the Companies Act 2006. As permitted, the Interim Results have
been prepared in accordance with the AIM rules and not in accordance with IAS
34 "Interim financial reporting" and therefore the interim information is not
in full compliance with International Accounting Standards.
The interim condensed consolidated financial statements are prepared under the
historical cost convention as modified to include the revaluation of certain
financial instruments. The accounting policies adopted in the preparation of
the interim condensed consolidated financial statements are consistent with
those followed in the preparation of the Company's annual consolidated
financial statements for the year ended 27 September 2025. The principal
accounting policies of the Company have remained unchanged from those set out
in the Company's 2025 annual report and financial statements. The Principal
Risks and Uncertainties of the Company are also set out in the Company's 2025
annual report and financial statements and are unchanged in the period.
The financial information for the 26 weeks ended 28 March 2026 and 29 March
2025 has not been audited and does not constitute full financial statements
within the meaning of Section 434 of the Companies Act 2006.
The Company's 2025 financial statements for the 52 weeks ended 27 September
2025 were prepared under UK-adopted International Accounting Standards. The
auditor's report on these financial statements was unqualified and did not
contain statements under Sections 498(2) or (3) of the Companies Act 2006 and
they have been filed with the Registrar of Companies.
3. Going concern
The interim condensed financial statements have been prepared on a going
concern basis. Projections for the period to the end of May 2027 demonstrate
that the Company, including its subsidiaries, can continue to operate and meet
its financial obligations as they fall due for at least twelve months from the
date of approval of the accounts. The Directors have not identified any
material uncertainties that may cast significant doubt on the ability of the
Company to continue to operate as a going concern. Factors likely to affect
the Company's future development, performance and position are set out in the
Company's 2025 annual report and financial statements.
At the end of the reporting period, the Company had no bank loans, overdrafts
or other related financial liabilities.
The Company's systems for financial planning, management and control include a
comprehensive budgeting process, with annual budgets approved by the
Directors. Monthly monitoring of actual results against budget by the
Directors is a standard practice, as is the quarterly review of financial
forecasts, which consider operational performance, trading conditions and
market opportunities.
Financial projections recognise that the Company remains dependent on the
trading profitability of CSC, which is itself dependent on revenues from major
UK and overseas defence contracts, UK hydrogen orders and high-value Integrity
Management services.
Due to the significance of revenues from UK hydrogen projects in the 3YP from
FY27 onwards, noting the history of delays and the uncertain outlook in this
market, the Directors have considered scenarios that account for the loss of
all future hydrogen newbuild projects. The Directors have also considered
further sensitised scenarios that account for reasonably plausible delays to
the placement of UK and overseas defence contracts, in addition to the loss of
future hydrogen newbuild projects.
The Directors believe that the loss of future hydrogen contracts and material
delays to defence contracts would give the Company sufficient time to take
mitigating actions and adjust operating costs and capital expenditure plans to
maintain liquidity and sufficient cash headroom throughout the forecast
period. These mitigations have been included in the sensitised scenarios
considered by the Directors in their confirmation of the going concern basis
of preparation.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
4. Segmental analysis of Revenue, adjusted EBITDA and Operating Loss
Revenue by destination Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
United Kingdom 4,312 3,974 11,058
Europe 1,327 851 2,281
Rest of the World 724 558 3,244
6,363 5,383 16,583
Revenue by sector
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Defence 4,965 4,445 12,761
Hydrogen Energy 868 653 2,608
Industrial 417 196 485
Offshore services 113 89 729
6,363 5,383 16,583
Revenue recognition
The Company's pattern of revenue recognition is as follows:
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Sale of goods transferred at a point in time 2,965 2,032 4,513
Sale of goods transferred over time 2,073 1,241 7,227
Rendering of services 1,325 2,110 4,843
6,363 5,383 16,583
Notes to the Condensed Consolidated Interim Financial Statements (continued)
4. Segmental analysis of Revenue, adjusted EBITDA and Operating Loss
(continued)
For the 26-week period ended 28 March 2026 (unaudited)
Central costs(2) Total
CSC operations(1)
£'000 £'000 £'000
Revenue from external customers 6,363 - 6,363
Gross profit 2,129 - 2,129
Adjusted EBITDA (211) (422) (633)
Depreciation (367) (38) (405)
Operating loss before exceptional costs (578) (460) (1,038)
Exceptional costs (18) (26) (44)
Operating loss (596) (486) (1,082)
Net finance costs (18) (17) (35)
Loss before tax (614) (503) (1,117)
Segmental net assets / (liabilities)(3) 10,070 (348) 9,722
Other segment information:
Taxation credit 18 4 22
Capital expenditure - property, plant and equipment
360 - 360
1 CSC operations comprise the results of the Chesterfield Special Cylinders
Limited trading subsidiary and its subsidiaries.
2 Central costs comprise costs related to the public listing of Chesterfield
Special Cylinders Holdings plc.
3 Segmental net assets / (liabilities) comprise the net assets of each segment
adjusted to reflect the elimination of the cost of investment in subsidiaries.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
4. Segmental analysis of Revenue, adjusted EBITDA and Operating Loss
(continued)
For the 26-week period ended 29 March 2025 (unaudited) - continuing operations
only, restated*
Central costs(2) Total
CSC operations(1) ( ) Restated*
Restated*
£'000 £'000 £'000
Revenue from external customers 5,383 - 5,383
Gross profit (Restated) 1,433 - 1,433
Adjusted EBITDA (896) (441) (1,337)
Depreciation (355) (44) (399)
Operating loss before exceptional costs (1,251) (485) (1,736)
Exceptional costs (45) (671) (716)
Operating loss (1,296) (1,156) (2,452)
Net finance costs (6) (20) (26)
Loss before tax (1,302) (1,176) (2,478)
Segmental net assets(3) 8,703 249 8,952
Other segment information:
Taxation credit /(charge) 6 (1) 5
Capital expenditure - property, plant and equipment
189 14 203
1 CSC operations comprise the results of the Chesterfield Special Cylinders
Limited trading subsidiary and its subsidiaries.
2 Central costs comprise costs related to the public listing of Chesterfield
Special Cylinders Holdings plc.
3 Segmental net assets comprise the net assets of each segment adjusted to
reflect the elimination of the cost of investment in subsidiaries.
*The segmental analysis for the prior 26-week period has been restated (see
Note 14) to reflect a re-classification of labour costs from cost of sales to
administration expenses. There is no impact on the overall result for the
financial period. This re-classification was already applied in the audited
statutory accounts for the 52 weeks ended 27 September 2025. In addition, the
profit on disposal of the discontinued operation has been included within the
profit for the period from discontinued operations in line with the treatment
applied in the audited statutory accounts for the 52 weeks ended 27 September
2025.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
4. Segmental analysis of Revenue, adjusted EBITDA and Operating Loss
(continued)
For the 52-week period ended 27 September 2025 (audited) - continuing
operations only
Central costs(2) Total
CSC operations(1)
£'000 £'000 £'000
Revenue from external customers 16,583 - 16,583
Gross profit 6,386 - 6,386
Adjusted EBITDA 1,623 (772) 851
Depreciation (724) (84) (808)
Operating profit / (loss) before exceptional costs 899 (856) 43
Exceptional costs (68) (722) (790)
Operating profit / (loss) 831 (1,578) (747)
Net finance costs (28) (34) (62)
Profit / (loss) before tax 803 (1,612) (809)
Segmental net assets(3) 10,666 150 10,816
Other segment information:
Taxation credit 36 156 192
Capital expenditure - property, plant and equipment
354 14 368
1 CSC operations comprise the results of the Chesterfield Special Cylinders
Limited trading subsidiary and its subsidiaries.
2 Central costs comprise costs related to the public listing of Chesterfield
Special Cylinders Holdings plc.
3 Segmental net assets comprise the net assets of each segment adjusted to
reflect the elimination of the cost of investment in subsidiaries.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
5. Exceptional costs
Items that are incurred outside the normal course of business and/or that are
non-recurring are considered as exceptional costs and are disclosed separately
on the face of the Condensed Consolidated Statement of Comprehensive Income.
An analysis of the amounts presented as exceptional costs is as follows:
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Costs in relation to the sale of PMC - (593) (593)
Other corporate finance services (13) - (48)
Reorganisation costs - (95) (95)
Arrangement of term loan - (10) (10)
Other plc costs (31) (18) (44)
(44) (716) (790)
6. Taxation
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Current tax charge - - -
Deferred taxation credit 22 5 192
Taxation credit to the income statement 22 5 192
The taxation credit in the period relates to a slight decrease in the net
deferred tax liability of the Company. This is driven by a decrease in
deferred tax liabilities in relation to accelerated tax depreciation.
7. Loss per ordinary share
The calculation of basic loss per share is based on the loss attributable to
ordinary shareholders divided by the weighted average number of shares in
issue during the period.
The calculation of diluted loss per share is based on basic loss per share,
adjusted to allow for the issue of shares on the assumed conversion of all
dilutive share options.
Adjusted loss per share shows loss per share after adjusting for the impact of
amortisation charges and exceptional items, and for the estimated tax impact,
if any, of those costs. Adjusted loss per share is based on the loss as
adjusted divided by the weighted average number of shares in issue.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
7. Loss per ordinary share (continued)
For the 26-week period ended 28 March 2026 (unaudited)
£'000
Loss after tax (1,095)
Number of Shares ('000)
Weighted average number of shares - basic 38,667
Dilutive effect of share options - SAYE 42
Dilutive effect of share options - warrants 1,933
Weighted average number of shares - diluted 40,642
Loss per share from continuing operations - basic and diluted (2.8)p
Total loss per share - basic and diluted (2.8)p
The effect of anti-dilutive potential shares is not disclosed in accordance
with IAS 33.
The Company adjusted loss per share is calculated as follows:
£'000
Loss after tax (1,095)
Exceptional costs (note 5) 44
Theoretical tax effect of above adjustments (11)
Adjusted loss (1,062)
Adjusted loss per share - continuing operations (2.8)p
Total adjusted loss per share (2.8)p
The tax effect is based on applying a 25% tax rate to the adjustment for
exceptional costs.
For the 26-week period ended 29 March 2025 (unaudited)
£'000
Loss after tax (2,210)
Number of Shares ('000)
Weighted average number of shares - basic 38,667
Dilutive effect of share options - SAYE 92
Dilutive effect of share options - warrants 1,933
Weighted average number of shares - diluted 40,692
Notes to the Condensed Consolidated Interim Financial Statements (continued)
7. Loss per ordinary share (continued)
Loss per share from continuing operations - basic and diluted (6.4)p
Loss per share from discontinued operations - basic and diluted 0.7p
Total loss per share - basic and diluted (5.7)p
The effect of anti-dilutive potential shares is not disclosed in accordance
with IAS 33.
The Company adjusted loss per share is calculated as follows:
£'000
Loss after tax from continuing operations (2,473)
Profit after tax from discontinued operations 263
Exceptional items: continuing operations (note 5) 716
Profit on disposal of PMC: discontinued operations (388)
Theoretical tax effect of the above adjustments: continuing operations (179)
Theoretical tax effect of the above adjustments: discontinued operations 97
Adjusted loss (1,964)
Adjusted loss per share - continuing operations (5.0)p
Adjusted loss per share - discontinued operations (0.1)p
Total adjusted loss per share (5.1)p
The tax effect is based on applying a 25% tax rate to the adjustment for the
profit on disposal and exceptional costs.
For the 52 week period ended 27 September 2025 (audited)
£'000
Loss after tax (354)
Number of Shares ('000)
Weighted average number of shares - basic 38,667
Dilutive effect of share options - SAYE 63
Dilutive effect of share options - warrants 1,933
Weighted average number of shares - diluted 40,663
Loss per share from continuing operations - basic and diluted (1.6)p
Earnings per share from discontinued operations - basic and diluted 0.7p
Total loss per share - basic and diluted (0.9)p
The effect of anti-dilutive potential shares is not disclosed in accordance
with IAS 33.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
7. Loss per ordinary share (continued)
The Company adjusted loss per share is calculated as follows:
£'000
Loss after tax from continuing operations (617)
Profit after tax from discontinued operations 263
Exceptional items: continuing operations (note 5) 790
Profit on disposal of PMC: discontinued operations (388)
Theoretical tax effect of the above adjustments: continuing operations (198)
Theoretical tax effect of the above adjustments: discontinued operations 97
Adjusted loss (53)
(0.0)p
Adjusted loss per share - continuing operations
Adjusted loss per share - discontinued operations (0.1)p
Total adjusted loss per share (0.1)p
The tax effect is based on applying a 25% tax rate to the adjustment for the
profit on disposal and exceptional costs.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
8. Reconciliation of operating profit to operating cashflow
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Adjusted Operating (loss) / profit from continuing operations (1,038) (1,736) 43
Adjustments for:
Depreciation of property, plant and equipment 405 399 808
Share option costs - 4 7
Movement in translation reserve 1 (3) 2
Changes in working capital:
Decrease in inventories 42 321 402
Decrease / (increase) in trade and other receivables 1,489 1,077 (1,040)
(Decrease) / increase in trade and other payables (1,581) (417) 44
Operating cash flow from continuing operations (682) (355) 266
Adjusted Operating loss from discontinued operations - (125) (125)
Adjustments for:
Depreciation of property, plant and equipment - 13 13
Changes in working capital:
Decrease in inventories - 11 11
Decrease in trade and other receivables - 103 103
Decrease in trade and other payables - (100) (100)
Operating cash flow from discontinued operations - (98) (98)
Total operating cash flow (682) (453) 168
Notes to the Condensed Consolidated Interim Financial Statements (continued)
9. Reconciliation of net debt
Unaudited Unaudited Audited
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Cash and cash equivalents 1,130 1,857 2,130
Net cash excluding lease liabilities 1,130 1,857 2,130
(482) (435) (362)
Lease liabilities
Net cash 648 1,422 1,768
10. Discontinued operation and disposal Group classified as held for sale
The sale of the Precision Machined Components (PMC) division to Raghu Vamsi
Machine Tools Private Limited, a manufacturer of specialised precision
engineered components based in India, completed on 8 October 2024. As such,
PMC was part of the Group's discontinued operations in FY25 for ten days only.
The assets and liabilities of PMC were classified as a disposal group held for
sale as at 28 September 2024. Revenue and expenses, gains and losses relating
to the discontinuation of this division have been eliminated from profit or
loss from the Group's continuing operations and are shown as a single line
item in the consolidated statement of comprehensive income.
Operating loss of PMC in the period is summarised as follows:
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
- 50 50
Revenue
Cost of sales - (103) (103)
Gross loss - (53) (53)
Administration expenses - (71) (71)
Operating loss before exceptional costs - (124) (124)
Finance costs - (1) (1)
Loss from discontinued operations before tax - (125) (125)
Tax charge - - -
Loss from discontinued operations after tax - (125) (125)
There was no tax charge or credit attributed to the discontinued operation in
the 52 weeks ended 27 September 2025. Its loss in the ten days between 28
September 2024 and completion of the sale is treated as unrealised.
Notes to the Condensed Consolidated Interim Financial Statements (continued)
10. Discontinued operation and disposal Group classified as held for sale
(continued)
As at 28 March 2026, 29 March 2025 and 27 September 2025, there were no assets
or liabilities in this disposal Group.
Cash flows generated by PMC for the reporting periods under review are as follows:
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
28 March 29 March 27 September
2026 2025 2025
£'000 £'000 £'000
Operating cashflow - (98) (98)
Exceptional costs - - -
Finance costs paid - - -
Income tax refunded - - -
Net cash outflow from operating activities - (98) (98)
Net cash outflow from investing activities - - -
Net cash outflow from financing activities - - -
Cash outflows from discontinued operations - (98) (98)
Profit on disposal of discontinued operation (PMC)
The profit on disposal of the PMC division, recognised in the 52 weeks ended
27 September 2025, is as follows:
£'000
Proceeds 4,392
Carrying value of net assets sold
Non-current assets: property, plant and equipment 2,989
Deferred tax assets 10
Current assets: inventories 1,276
Current assets: trade and other receivables 4,321
Current assets: cash and cash equivalents 484
Current liabilities: trade and other payables (3,179)
Lease liabilities (1,727)
Deferred tax liabilities (170)
4,004
Profit on disposal of the PMC division 388
(125)
Loss from discontinued operations after tax
Profit for period from discontinued operations 263
Notes to the Condensed Consolidated Interim Financial Statements (continued)
11. Called up share capital and share premium
Unaudited Audited Unaudited Audited
28 March 27 September 28 March 28 September
2026 2025 2026 2025
Shares Share Capital
Shares No. Share Capital £'000
No. £'000
Allotted, issued and fully paid
Ordinary shares of 5p each 38,667,163 38,667,163 1,933 1,933
Share Premium
£'000
Share Premium account
At 28 March 2026, 27 September 2025 and 29 March 2025 1,699
During the 26-week periods to 28 March 2026 and 29 March 2025, the Company did
not issue any new ordinary shares.
12. Dividends
No final or interim dividend was paid for the 52-week period ended 27
September 2025.
No interim dividend is declared for the 26-week period ended 28 March 2026.
13. Related party transactions
On 14 November 2023 a £1.5 million term loan facility was agreed with
Rockwood Strategic plc and Peter Gyllenhammar AB, two of its major
shareholders. The loan was fully repaid in October 2024 following the sale of
PMC.
In conjunction with the provision of the term loan, Rockwood and Gyllenhammar
were issued with 1,933,358 warrants in aggregate (representing 5% of the
issued share capital) to subscribe for ordinary shares in the Company at a
price of 32 pence per share, representing a 20% premium to the closing share
price on 23 October 2023 (being the day prior to the announcement of the new
facility). The warrants may be exercised at any time in the 5 years following
drawdown of the new facility and continue to be exercisable notwithstanding
that the facility was repaid in October 2024 before its final expiry.
Rockwood Strategic plc is a quoted unit trust whose funds are managed by
Harwood Capital LLP, thereby placing it under the control of Richard Staveley,
a Non-Executive Director of the Company. Rockwood Strategic plc is therefore
considered to be a related party under "IAS24 - Related Party Disclosures".
Total fees paid to Rockwood Strategic plc in the period were £nil (2025:
£nil), and total interest payments to Rockwood Strategic plc were £nil
(2025: £4,000).
Notes to the Condensed Consolidated Interim Financial Statements (continued)
14. Prior period restatement
Reclassification of labour costs and profit on disposal of discontinued
operation
During the 52-week period ended 27 September 2025, the Directors reviewed the
treatment of labour costs in the financial statements of CSC. The Directors
noted that since FY22, a proportion of labour cost has been charged to cost of
sales which should more appropriately have been allocated to administrative
expenses.
In addition, the profit on disposal of the discontinued operation has been
included within the profit for the period from discontinued operations in line
with the treatment applied in the audited 52 weeks ended 27 September 2025.
As a result, a prior period restatement has been made to the Condensed
Consolidated Statement of Comprehensive Income. This affects the
classification of labour costs and profit on disposal of discontinued
operation only and there is no impact on the reported loss for the
period. There is no impact on either the Condensed Consolidated Statement of
Financial Position, the Condensed Consolidated Statement of Changes in Equity,
or the Condensed Consolidated Cash Flows Statement.
These reclassifications were reflected in the audited statutory accounts for
the 52 weeks ended 27 September 2025 but not reflected in the interim
financial statements for the 26 weeks ended 29 March 2025.
For the 26 weeks ended 29 March 2025, the impact of the restatement was as
follows:
2025 2025 2025
Presented Adjustment Restated
£'000 £'000 £'000
Items in the Condensed Consolidated Statement of Comprehensive Income:
Cost of sales (4,424) 474 (3,950)
Gross profit 959 474 1,433
Administration expenses (2,695) (474) (3,169)
Profit on disposal of discontinued operation 388 (388) -
Operating loss (2,064) (388) (2,452)
Loss for the period from continuing operations (2,085) (388) (2,473)
(Loss) / profit for the period from discontinued operations (125) 388 263
Loss for the period attributable to the owners of the parent (2,210) - (2,210)
Reclassification of contract balances and deferred income
During the 52-week period ended 27 September 2025, the directors reviewed the
timing of future cashflows in relation to contract assets and liabilities and
concluded that in some cases a proportion of the contract asset is likely to
be recovered in greater than 12 months and a proportion of the contract
liability is likely to be fulfilled in greater than 12 months. Accordingly,
the Condensed Consolidated Statement of Financial Position as at 29 March 2025
has been restated for amounts expected to be recovered in greater than 12
months, resulting in a £291,000 reduction in current contract assets and a
£291,000 increase in non-current contract assets and amounts expected to be
fulfilled in greater than 12 months, resulting in a £718,000 reduction in
current contract liabilities and a £718,000 increase in non-current contract
liabilities.
In addition, the directors also reviewed future delivery timing on other
deferred income balances and restated the 29 March 2025 comparatives for items
within deferred income where the obligation would be fulfilled in greater than
12 months, resulting in a £281,000 decrease in current deferred income and a
£281,000 increase in non-current deferred income.
These restatements have had nil impact on the result for the period and nil
impact on net assets as at the balance sheet date. This reclassification was
already applied in the audited statutory accounts as at 27 September 2025.
15. Events after the balance sheet date
On 6 May 2026, the Company announced that it had successfully renewed the
lease on three acres of land adjacent to its existing freehold site in
Sheffield, resulting in a material change to the value of property assets on
the Company's balance sheet.
The previously remaining leasehold term at the end of September 2025 was less
than twenty years and the total value of the Company's land and building
assets at the end of September 2025 was £2.6 million.
The new 125-year lease provides long-term security for the Company's
manufacturing operations and results in a revised carrying value of the
combined property asset of £4.9 million, comprising the existing freehold of
£2.6 million and a £2.3 million right-of-use asset for the new lease. This
carrying value is in line with the valuation of the Company's land and
building assets of £4.9 million, as assessed by independent chartered
surveyors, Knight Frank, in March 2026.
A copy of the Interim Report will be sent to shareholders shortly and will be
available on the Company's website: www.csc-holdings.com
(http://www.csc-holdings.com) .
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Copyright 2019 Regulatory News Service, all rights reservedRecent news on Chesterfield Special Cylinders Holdings
See all newsREG - Chesterfield Special - 2026 Interim Results
AnnouncementREG - Chesterfield Special - Investor Presentation via Investor Meet Company
AnnouncementREG - Chesterfield Special - Property Lease Renewal
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AnnouncementREG - Chesterfield Special - Holding(s) in Company
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