Chamberlin PLC updates on restructuring efforts, business performance
The engineering firm said the restructuring of Chamberlin and Hill Castings Ltd and its integration into the business has been completed while also winning a 3-year contract to supply components for diesel engine generators
() has updated investors on its operations as it continues its restructuring efforts.
The specialist castings and engineering firm said the restructuring of Chamberlin and Hill Castings Ltd (C&H) and its integration into the business has been completed in line with expected cost savings, while the group said C&H has also won a 3-year contract to supply components for diesel engine generators commencing in July 2021.
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The firm also said that C&H has been informed that an existing Tier 1 customer has included the company on a new low volume, high-value 5-year programme to manufacture turbocharger bearing housings for a leading luxury sports car manufacturer, with supply starting in early 2022.
Meanwhile, Chamberlin said C&H is continuing to diversify its customer base to reduce reliance on the automotive sector, and has launched an ecommerce operation to design and develop consumer products to be sold online. Sales of kettlebells, the first products from this initiative, are already being made from the firm’s new website, while the company said strong ecommerce growth is expected to come from new product development, including authentic ‘retro’ household and commercial products from its design archive, and from extending sales into the global market.
The group also said that Russell Ductile Castings (RDC) is continuing to win work in railways, the renewables sector and for major UK infrastructure projects in power and water. The total forward order book for RDC is “strong”, Chamberlin said, adding that the businesses workforce has also been expanded by around 30% to meet demand.
Finally, Chamberlin said its Petrel business has completed the on-time supply of a significant Ministry of Defence contract to supply specialist ATEX lighting for installation on a flagship vessel for the Royal Navy, putting it in a strong position for the award of further contracts. The firm added that Petrel is also increasing its workforce to support an expansion of development and production capacity following a period of strong demand.
“The recently completed fund-raise has facilitated the restructuring of the C&H Foundry in Walsall and provides a sound platform for growth. Efforts are concentrated on replacing revenue at C&H, following the loss of major contracts at the end of 2020. [The] directors are confident that the company is now well positioned to exploit the opportunities arising in the new financial year commencing 1 June 2021,” Chamberlin chairman Keith Butler-Wheelhouse said in a statement.
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