Chamberlin shares suspended from trading after winding-up petition

The group, which has its head office at Chuckery Road, requested the trading on AIM, the Stock Exchange's market for small and medium size growth companies, be suspended with immediate effect on Monday.

It came after it was issued with a winding-up petition by its main power supplier.

Chamberlain said its capital position was being managed but this required the continued co-operation of creditors.

On April 10 the group had announced a cost-reduction programme.

Chamberlin says it will discuss the current position with its creditors and major shareholders.

Further announcements will be made, as appropriate, in due course.

A court hearing was held on Monday where it was determined that the winding-up petition would be adjourned until July 2.

In April Chamberlin said that underlying demand had been lower than expected in its third quarter with lower sales also negatively affecting profitability and working capital. To tackle the challenges, price increases as well as a cost-cutting strategy were implemented but this resulted in the share price dropping.

It was also announced a week later that chairman Keith Butler-Wheelhouse and finance director Alan Tomlinson were set to depart.

Chamberlin sold its specialist industrial manufacturing subsidiary Petrel in Kitts Green, Birmingham, in a £3 million deal to Project Apollo, part of investment firm Longacre Group.

Proceeds from the deal were expected to reduce the group’s liabilities by £2.6m and contribute a profit of no less than £2m in 2024. £600k will be paid to HSBC to reduce Chamberlin’s debt and release certain charges over the shares and assets of Petrel.

Chamberlin's origins were in the founding in 1890 of the Chamberlin and Hill foundry.

At the start of the 2023-2024 financial year the group employed 165 with 135 in its foundries and 23 in engineering. There were seven head office staff.