Chamberlin sales grow after investment

As well as creating nearly two dozen new jobs so far the new unit, that machines castings produced at the Chamberlin & Hill foundry across town, is putting the company in line for a string of new contracts.

And it has helped boost sales figures for the group, which were up 10 per cent over the last year to £32.1 million.

Chamberlin, which also includes the Exidor emergency exit equipment firm at Cannock, saw underlyuing pre-tax profit for the year to the end of March more than double to £579,000 from 233,000 a year ago.

Chamberlin's capital expenditure was up from £1.4m in the previous year to £3.9m and included the establishment of the machining facility at Maple Leaf Industrial Estate, off Bloxwich Lane, Walsall, to support a move into fully machined components.

The transformation in the company also saw the closure of a foundry in Leicester, with the loss of 17 jobs, last year. Chief executive Kevin Nolan said the Leicester foundry's work had gone overseas.

However, revenue at the remaining foundries – in Walsall and Scunthorpe – grew by by eight per cent to £21.3m and engineering operations increased by 15 per cent to £10.8m.

Mr Nolan said the change in direction was tied to winning work making parts for diesel and petrol engines for both family cars and commercial vehicles in Europe. Around 72 per cent of parts were going for petrol engines, he said.

Existing contracts are set to provide years of work for the company, and, said Mr Nolan: "We are engaged in in-depth discussions with both our existing customers and new customers."

"Some of these new potential customers wouldn't even be talking to us if we didn't have our new machining facilities," he added.

The three new machines at Walsall currently occupy just half the space at the new factory unit, leaving plenty of scope for further growth as new orders are won, said Mr Nolan.

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

"We have further developed Chamberlin's 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. It also underlines our ability to deliver a world class product at a globally competitive cost.

"The group remains well placed for further progress over the new financial year, supported by major new contracts," added Mr Butler-Wheelhouse.

Operating profit across foundry activities rose by 55 per cent, driven mainly by the flagship Walsall foundry, and engineering operations increased operating profit by 20 per cent year-on-year.