Chamberlin shares sag on wider FY after-tax loss

Shares in Chamberlin sagged almost 20% as investors disliked its wider full-year after-tax loss, despite the company foreseeing further profitable revenue growth in the next financial year supported by major new contracts coming on stream.

The after-tax loss was £973,000, from a loss of £261,000. At the pre-tax level it posted a profit of £54,000, from a loss of £336,000.

Revenue improved to £32.1m, from £29.1m, but net debt more than doubled to £6.8m, reflecting machining facility investment.

"Chamberlin made important strategic and operational progress over the year, which will help to support a significant new phase of growth," said chairman Keith Butler-Wheelhouse.

"Revenue increased by 10% to £32.1m and the underlying profit before tax increased significantly to £0.6m," he added.

Butler-Wheelhouse said Chamberlin had further developed its product offering with a significant investment in a machining facility in Walsall.

"Opened in the final quarter of the financial year, it improves our competitive positioning and will support further growth over the new financial year," he added.

"It also underlines our ability to deliver a world class product at a globally competitive cost."

Butler-Wheelhouse concluded that Chamberlin remained well placed for further progress over the new financial year, supported by major new contracts.

At 10:44 BST, shares in Chamberlin were down 19.26% to 142.5p each.