Chamberlin shares were up 2.5% to 4.8p in late afternoon trading on Friday after the group announced a 112% rise in adjusted EBITDA and a FY 2022 post-tax profit for the first time in five years.
Chamberlin highlighted an expected revenue of £16.5 million, in line with market expectations, alongside an adjusted EBITDA of £200,000 and a post-tax profit of £100,000.
The company reported an expected record level of revenue and operating profit growth at Petrel and Russell Ductile Castings on the back of strong recovery and high demand across post-pandemic markets.
However, Chamberlin confirmed slower than anticipated recovery at Chamberlin & Hill Casings in Walsall, which still operates at a loss.
The group said it would mostly eliminate the deficit to shareholders’ funds for FY 2022 as a result of restructuring actions, a reduction in the pension deficit and improved performance across the firm.
Chamberlin added that it refinanced the terms of its assets finance facility with HSBC in May 2022, extending the repayment period to October 2025 at an interest rate of 6.5%.
The company further mentioned the proceeds from its sale and leaseback of its freehold property at RDC on 6 May 2022 were used to reduce its pension fund deficit by £600,000 in satisfaction of the Chamberlin & Hill Life Assurance Scheme’s charge over the property, with the balance of the proceeds being applied to the firm’s growth strategies and working capital.
It also noted a net debt of £2.7 million on 32 May 2022, alongside current cash headroom in line with management expectations at £800,000.
Chamberlin confirmed strong order books across all three sectors despite the volatile market environment, with higher than expected order levels and the reduction in its cost base priming it for future growth.