Final Results - Year Ended 31 March 2000

Chamberlin & Hill PLC
22 May 2000


Chamberlin & Hill Plc                    

Preliminary Announcement Of Results For The Year Ended 31 March 2000 
 

                                                                 
              Financial Highlights                2000      1999 
                                                  £000      £000 
                   Turnover                     31,531    30,061 
                   Operating Profit              3,308     3,026 
                   Profit before tax             3,301     3,054 
                   Basic Earnings per share     30.88p    26.67p 
                   Dividends per share          11.00p    10.20p 
 
Chamberlin & Hill made further progress in the year to 31 March 2000. Sales
were up from £30.1 million to £31.5 million. Operating profit rose by 10%
from £3.0 million to £3.3 million. Earnings per share rose by 16% or 4.21p
from 26.67p to 30.88p. Improved after tax profits contributed 3p of the
increase and the reduction in share capital resulting from the share
repurchases accounted for the rest. 
 
Share repurchases cost £908,000 and, with a strong flow of funds, cash and
bank balances increased by £504,000 reflecting an operating cash flow of £1.4
million after capital expenditure. The directors are recommending a final
dividend of 7.45p (6.90p) making a total for the year of 11.0p (10.20p). The
dividend cover is 2.9 times. 
 
Last year I referred to the market view of companies of our size and in our
sector. It seems as though we are seen as 'old economy' and therefore
unlikely or even unable to grow shareholder value at a reasonable rate. Yet
to us a 16% earnings increase appears to be a robust performance, coming as
it does after a period in which we doubled profits over five years. We shall
continue talking to shareholders to see whether we can improve our
understanding of their views. 
 
The Board has been strengthened by the addition of Nick Kuenssberg and it
will be concentrating upon further improving performance. We have the market
positions, the management and the financial potential to do so. 
 
This year has started with strong order books. The three foundries are
particularly busy in contrast to this time last year. Given their record,
Barrie Williams and his team will continue to find new markets to enter and
will improve both products and productivity. They and all who work at
Chamberlin & Hill are to be thanked and congratulated on last year. We
continue to be well positioned to make further progress. 
 
John Eccles 
Chairman 
 
 

Summarised Group Profit and Loss Account

 

                                                                       
                                                       2000       1999 
                                                       £000       £000 
         Turnover                                   31,531      30,061 
         Operating profit                             3,308      3,026 
         Interest (payable)/receivable                  (7)         28 
         Profit before taxation                       3,301      3,054 
         Taxation                                   (1,017)    (1,003) 
         Profit after taxation                        2,284      2,051 
         Dividend                                     (800)      (788) 
         Retained profit                              1,484      1,263 
         Basic earnings per share                    30.88p     26.67p 
         Fully diluted earnings per share            30.74p     26.58p 
         Dividend per share:     proposed final       7.45p      6.90p 
                        Interim already paid          3.55p      3.30p 
 

Summarised Group Balance Sheet

                                                                              
                                   As at                      As at           
                               31 March 2000              31 March 1999       
                                    £000      £000             £000      £000 
  Fixed assets                               9,014                      9,292 
  Current assets                                                              
       Stocks                      3,336                      3,119           
       Debtors                     6,635                      5,972           
       Cash at bank and            1,091                        587           
  in hand                                                                     
                                  11,062                      9,678           
  Creditors - under one          (7,355)                    (6,921)           
  year                                                                        
  Net current assets                         3,707                      2,757 
  Provisions for                              (78)                       (78) 
  liabilities & charges                                                       
  Net assets                                12,643                     11,971 
  Capital and reserves                                                        
       Called up share                       1,818                      1,927 
  capital                                                                     
       Share premium                           625                        625 
  account                                                                     
       Reserves                             10,200                      9,419 
                                            12,643                     11,971 
 

Reconciliation of Movement in Shareholders' Funds

 

                                                                   
                                                    2000      1999 
                                                    £000      £000 
            Profit for the year                    2,284     2,051 
            Dividends                              (800)     (788) 
            Issue of share capital                     -        64 
            Arising on purchase of own shares      (908)         - 
            Goodwill on acquisition eliminated        96       248 
            Net movement in the year                 672     1,575 
            Opening shareholders' funds           11,971    10,396 
            Closing shareholders' funds           12,643    11,971 
Summarised Cash Flow Statement

 

                                                                           
                                                           2000       1999 
                                                           £000       £000 
    Net cash inflow from operating activities             4,441      3,976 
    Return on investments and servicing of finance          (7)         28 
    Taxation paid                                       (1,173)      (846) 
    Net capital expenditure and financial investment    (1,039)    (1,139) 
    Acquisition                                               -    (1,076) 
    Dividends paid                                        (810)      (735) 
    Net cash flow before financing                        1,412        208 
    Financing:     Bank loan repayments                       -       (20) 
              Finance lease payments                          -       (10) 
              Issue of shares (inc. premium)                  -         64 
              Repurchase of shares                        (908)          - 
    Increase in cash and bank balances                      504        242 
Reconciliation of operating profit to net cashflow from operating activities

 

                                                                   
                                                   2000       1999 
                                                   £000       £000 
              Operating profit                    3,308      3,026 
              Depreciation                        1,449      1,406 
              Profit on disposals                  (25)        (5) 
              Government grants credited           (10)       (10) 
              (Increase) in stocks                (217)       (57) 
              Decrease/(Increase) in debtors      (677)      1,081 
              (Decrease)/Increase in creditors      613    (1,465) 
                                                  4,441      3,976 
 
Notes: 
 
     The results for the year to 31 March 2000 have been extracted from the
financial statements for the year which have been audited and will be filed
with the Registrar of Companies. The results for the year to 31 March 1999
are an abridged version of the Company's full accounts for that year which
received an unqualified report by the auditors and have been filed with the
Registrar of Companies.

 
     The calculation of basic earnings per share is based on a profit of
£2,284,000 (1999: £2,051,000) and a weighted average of 7,396,398 shares
(1999: 7,691,539) in issue during the period.

 
     A copy of the Annual Report and Accounts for the year ended 31 March
2000 will be posted to shareholders early in July 2000. The Annual General
Meeting will be held on Friday, 28 July 2000.

 
     The dividend will be paid to ordinary shareholders registered at the
close of business on Friday, 5 June 2000 and will be posted immediately after
the Annual General Meeting.