21 November 2019 – trading update

A trading update has been released for the financial year ended 30 September 2019, with results due out on 17 December.  Full year result are due to be in line with expectations.  Momentum continued in the second half of the year in both divisions, with full-year revenue and profit up on the prior year.  Full-year revenue in Chesterfield Special Cylinders up, with the phasing of key contracts benefitting the second half against forecast.  Precision Machined Components’ full-year order intake and revenue were both also higher than in the previous year.  A sharp rise in orders and the transition to a divisional operating structure had a greater impact on operational performance than expected, resulting in a lower than forecast improvement in return on sales for the second half and a higher than anticipated year-end order backlog.  There was higher working capital and a small increase in net banking facility debt at the year end versus the reported half-year position.  The companies appears to be upbeat and we believe the shares are good value.  BUY.