The Walsall business will report a loss for the year to the end of May following the loss of a major contract with BorgWarner late last year, and the consequential restructuring of operations and refinancing.
Its board is confident that as the substantial majority of the group's restructuring costs and non-cash write downs will have been accounted for in the year, Chamberlin will be well positioned to make a strong recovery in the current financial year which started on June 1
The group has initiated a number of business development initiatives at Chamberlin & Hill to diversify the customer portfolio in order to reduce reliance on the automotive sector.
The main thrust is in the area of new consumer products where we have technical and design advantages where these can be sold primarily via ecommerce direct to the consumer.
Chamberlin has already received considerable interest in its growing gym equipment range and is preparing to launch a range of premium quality cast iron cookware for distribution across Europe.
It is the only British foundry producing many of these new consumer products.
Petrel in Birmingham is broadening its scope to include product hire and the provision of support services for new and existing safety lighting installations.
Russel Ductile Castings in Scunthorpe continues to outperform the board's expectations and it sees great scope for further growth and improved profitability in the current financial year. Its growing success is largely driven by a lack of competition in the UK foundry industry for niche, low-volume, large capacity castings.
With revenues now stable, costs realigned to reflect the current operating base across the group and exciting new potential growth opportunities, the board anticipates that Chamberlin will see a return to profitability in the current financial year.
Source: By John CorserBusiness Published: Jul, 2021