Foundry and engineering company Chamberlin today revealed it had plunged to a £1 million loss and announced a cost-cutting programme as it cancelled its half-year dividend payout to shareholders.
Revenue slumped by 14 per cent at the Walsall-based firm over the last six months to £19.5 million, driving Chamberlin to a loss of £1.16 million.
It compares to a £786,000 profit at the same point a year ago.
Problems centre on its Leicester and Scunthorpe foundries, while its Walsall Chamberlin & Hill foundry, which makes complex castings for turbo chargers, was more resilient and has seen only a marginal fall in revenue.
It is not known if the cost cutting programme at the firm will lead to job losses.
Chamberlin chairman Keith Butler-Wheelhouse said today: “Results for the six months to September 30 principally reflect the tough market conditions experienced by our foundry businesses with revenues 14 per cent lower than prior year, with the consequent adverse impact on profitability.
“We appointed a new executive team in September which is focused on rationalising cost and formulating a strategic growth plan. The teams at each site are now focused on reducing costs in line with lower levels of revenue to ensure improved financial performance.”
He added that recent performance suggested Chamberlin’s underlying loss should be lower in the second half of its financial year.