Revenues have risen by a quarter at engineering group Chamberlin – pushing the firm’s profits up almost five-fold.
Walsall-based Chamberlin (CMH) saw half-year sales rise to £23 million, compared with £18.3 million in the first six months of last year.
The improvement in fortunes pushed underlying profit before tax up 489 per cent, to £797,000 in the six months to September 30, compared with £163,000 in the first half of 2010.
Chairman Tom Brown said the firm’s foundry activities continued to improve with all three foundries operating above pre-recession levels.
He said: “Having returned to profitability in the first half of the last financial year, I am pleased to report that Chamberlin has continued to make good progress in the first six months of the current financial year. Underlying profit before tax has increased almost fivefold to £797,000 on revenues up by 25 per cent to £23 million and all three of our foundries are operating at or above pre-recession levels.
“This pleasing performance has been driven by improving demand in our established customer base, new business initiatives and operational improvements. In addition, having returned to dividend payments at the full year, we are declaring an interim dividend.
“Chamberlin’s existing operations continue to make good progress and with our sound financial base we are well placed to exploit the organic growth opportunities that we continue to identify. At the same time, we are also considering acquisitions which will expand our activities.
“While uncertainties have inevitably increased due to the wider European and global economic picture, at this point in the financial year we believe that Chamberlin remains well positioned to meet current market expectations.”
The group’s operating cash flow more than doubled to £947,000.
In July 2011 it raised £500,000 through the placing of 370,370 new ordinary shares with Diverse Income Trust, which is managed by MAM Funds, at an eight per cent premium to the then market price.
The company’s borrowings are financed by a £5 million facility with HSBC.