Chamberlin & Hill plc
Report and Accounts 2003 CHAMBERLIN & HILL Plc  Annual Report 2003
Contents
The Year in Brief 1
Directors and Advisors 2
Chairman’s Statement 3
Chief Executive’s Review 4
Report of the Directors 6
Corporate Governance 9
Directors’ Remuneration Report 11
Independent Auditors’ Report 15
Consolidated Profit and Loss Account 16
Statement of Total Recognised Gains and Losses 16
Consolidated Balance Sheet 17
Parent Company Balance Sheet 18
Consolidated Cash Flow Statement 19
Notes to the Accounts 20
Notice of Meeting 35
Financial History 36 1
The Year in Brief
Annual Report 2003  CHAMBERLIN & HILL Plc
2003 2002
£000 £000
Turnover 27,027 30,548
Operating profit 1,373 2,545
Adjusted earnings per share* 13.3p 24.0p
Dividends per share 11.85p 11.85p
*before exceptional item
“
2002/03 proved to be a difficult year
for manufacturing industry in the UK,
and Chamberlin & Hill
was no exception.
”
 Turnover down 11.5%
 Operating profit down to £1.373 million
 Dividend maintained at 11.85p for the year
 Strong ungeared balance sheet Directors and Advisors
Directors The Viscount Eccles, C.B.E. (Chairman)
N. B. Williams, M.Sc., C.Eng., M.I.C.M.E. (Chief Executive)
J. K. Bather, M.I.C.M.E. (Deputy Chairman)
P. E. H. Bell, A.C.M.A., A.C.I.S. (Finance)
N. C. D. Kuenssberg, B.A., F.C.I.S., C.C.M.I., FINSTD.
A. Vicary, M.Sc., B.Eng. (Hons) (Foundry Operations)
Company Secretary P. E. H. Bell, A.C.M.A., A.C.I.S.
Registered Office Chuckery Foundry,
Walsall WS1 2DU
Registered in England No. 76928
Auditors Heathcote & Coleman,
Birmingham
Solicitors Eversheds LLP,
Birmingham
Stockbrokers Arbuthnot Securities Limited,
Birmingham
Bankers HSBC Bank plc,
Walsall
Financial Advisers Ernst & Young LLP,
Birmingham
Registrars Neville Registrars Limited,
Neville House,
18 Laurel Lane,
Halesowen,
West Midlands B63 3DA
CHAMBERLIN & HILL Plc  Annual Report 2003 2 This time last year we were looking
for an improvement in trading
conditions. In the event we were
disappointed. Indeed, with slow
trading continuing, combined with
pressures to lower selling prices and
significant upward pressure on
costs notably insurance, but also
material prices, we were faced with
a year when although we held our
own we made no overall progress.
With both turnover and margins
down, operating profit fell to
£1,373,000 (2002: £2,545,000)
and adjusted earnings per share
(before restructuring costs) to
13.3p (2002: 24.0p). The Directors
are recommending a maintained
final dividend of 8.00 pence. The
balance sheet remains strong with
net cash in the bank of £692,000 at
the year end. Whilst last year was
a disappointment, we are now one
year nearer to an upturn if past
experience of engineering business
cycles is a reliable guide, and we
certainly see no evidence that the
economy is behaving that much
differently to the way it has
behaved over the years.
In a year when trading is tough it is
tempting to avoid difficult decisions
in order to protect short term
results. Cutting costs, particularly
reducing the number of employees,
is both unwelcome and expensive
as our restructuring costs of
£451,000 demonstrate. On the
other side of the coin, a
continuance of capital expenditure
and vigorous product development
also limits short term results. As
we see it, we have no sensible
alternative but to continue with an
aggressive policy of improvement.
The world does not stand still just
because we have a pause in trading
progress. Last year was no
exception. Not unexpectedly one
product which has stood us in good
stead over the years has gone to
imports from the Far East, and
we are ourselves now importers
of the product. We have also
been affected by business failure in
circumstances when we believed it
right to support a customer who
faced similar problems, but in the
event could not contain them.
These judgements are not easy to
reach and it would be a bold
Chairman who claimed that we will
always get them right. Any more
than we are certain to be right
about exchange rates as we trade
in Euros with our French and
German customers. Nevertheless,
your Board is certain that under
Barrie Williams’ leadership we are
pursuing sound policies with
confidence and good judgement
and the proof that the mixture is
right comes out in a strong balance
sheet and a positive cash position
with nil net borrowings. We are
pursuing tomorrow’s opportunities
with determination.They will emerge
and we will be able to take them
with confidence.
Meanwhile it is too soon to call an
upturn. The pressures on costs and
prices remain. We are winning new
business but schedules are not yet
sufficiently buoyant. There will
come a day when the cycle turns
and when it does I am confident
that we will break new ground. We
have a good team well led, and
with a strong balance sheet to
back sound market positions we
have every prospect of resuming
progress.
John Eccles
Chairman
Chairman’s Statement
Annual Report 2003  CHAMBERLIN & HILL Plc 3 Chief Executive’s Review
Results
2002/03 proved to be a particularly
difficult year for manufacturing
industry in the UK, and Chamberlin
& Hill was no exception. Turnover,
down 10.8% at the interim stage,
fell to £27.0m for the year as a
whole compared to £30.5m in
2001/02, a fall of 11.5%. At this
level sales were broadly in line with
the national statistics for production
output for engineering and allied
industries. Margins fell as the effect
of fixed costs took their toll; net
operating margin for the year was
5.1% compared to 8.3% last time.
We again experienced demands
for price down as well as pressure
from higher costs. Of significant
importance this year was the near
25% increase in the cost of many
of the major raw materials for
our foundries in the last quarter of
the year. 
Foundry sales fell by 9.4% to
£18.0m. This fall occurred mainly
at Walsall and Bloxwich with a
small reduction at Ductile Castings.
A similar picture emerged in our
engineering businesses, where
the reduction in sales at PFP was
some 13.1% and at FD 17.3%.
Sales per head fell to £57,800, the
first fall for 10 years. Our export
sales grew in real volume,
increasing to 17.1% of the group’s
total compared to 14.7% in
2001/02. At the trading level,
profit in the foundries fell to
£1.094m while in the engineering
businesses it was £0.744m. 
To accommodate the downturn
in activity we instigated some
restructuring, leading to a fall in the
number of employees to 438 at
the year end with an associated
exceptional cost of £316,000. A
further exceptional amount of
£135,000 has been provided
against stock at PFP as a
consequence of its changing
markets, and changed position
within ongoing markets. In
particular a different pattern of
sales emerged in the market for
electrical conduit fittings, where
most supplies are now imported
from low cost economies. This also
had an impact on the market
position and volume of business at
Bloxwich Foundry.
Investment
Capital expenditure for the year
was £1.71m. The major item was
the installation of the assets bought
at the beginning of the year from
H. Bingham & Sons, Doncaster, on
the Scunthorpe site. The new
foundry, producing steel and
SG iron castings, was commissioned
in June 2002. Since that time good
progress has been made with
sales reaching an annual rate of
approximately £1m by the year
end with a positive contribution to
operating profit. A number of new
customers are currently being
brought on stream. Other
investments include the purchase
of further Barinder robotic grinding
machines and investment in new
market opportunities at Walsall
Foundry. There has been further
development of our Exidor range
and investment for successful
margin improvement in the
manufacture of our range of
Webb Lloyd handles at FD. At
PFP we increased our capacity to
assemble switch & socket boxes,
also achieving a considerable
productivity improvement.
Outlook
In our foundry businesses we
are concentrating on both
consolidating our entry into new
markets and further rationalisation.
These initiatives include increasing
our output at Bloxwich Foundry of
ductile iron castings, particularly
within the automotive and general
CHAMBERLIN & HILL Plc  Annual Report 2003 4 5
engineering sector, and further
extending our production of
austempered ductile iron (ADI). At
Walsall we expect to expand our
activity in the production of
castings for turbo charging
applications and hydraulic control.
Opportunities in markets for
compressors, railway applications
and construction should enable
Ductile Castings to achieve growth
in volume and efficiencies in the
new foundry in the year ahead. In
our engineering businesses we will
be seeking at FD to expand
our market position as well as
continuing to launch other new
products in the Exidor range. We
also look to extend our activity into
the wider European market in the
year ahead. At PFP we will increase
our range of cable management
products, as well as actively seeking
growth in this sector. There will
also be some further new products
in our range of hazardous area
lighting. 
For the future we are looking to
build on the foundations put in
place this year. We will develop
sales in a number of new markets,
improve operating margins and
increase the contribution from
Ductile Castings following our
investment there. We are
cautiously optimistic that demand
will grow as the year progresses,
albeit slowly. We intend to ensure
that productivity gains continue to
be achieved in all our operations.
Our acquisition strategy remains
one of pursuing appropriate
opportunities as and when they
become available.
Once again, I would like to thank
most sincerely all the members of
our team for their hard work and
diligence during the year.
Barrie Williams
Chief Executive
Annual Report 2003  CHAMBERLIN & HILL Plc Report of the Directors
The Directors present their Annual Report and Accounts for the year ended 31 March 2003.
Principal activities
The Group is engaged in ferrous founding and light engineering products for safety and security applications. 
Review of the business
A review of the Group’s activities, its development and future prospects is included in the Chairman’s Statement
and Chief Executive’s Review on pages 3 to 5.
Financial results
The consolidated profit and loss account is shown on page 16. Group profit after taxation amounted to £658,000
(2002: £1,748,000). After dividends the deficit is £213,000 (2002: £882,000 surplus). Movements in Reserves are
shown in Note 20.
Dividends
The Directors recommend the payment of a final dividend of 8.00p per share payable on 25 July 2003 which
together with the interim dividend of 3.85p per share paid on 19 December 2002, totals 11.85p for the year
(2002: 11.85p).
Directors
Details of the Directors of the Company are shown below and their interests in the shares of the Company and
share options are shown in the Directors’ Remuneration Report on pages 11 to 14. All Directors held office
throughout the year.
Barrie Williams and Nick Kuenssberg retire from office as Directors and, being eligible, offer themselves for
re-election. Barrie Williams has a service agreement which provides for termination by the Company on not less
than two years notice. Nick Kuenssberg does not have a service agreement.
No Director had a material interest during the year in any significant contract with the Company or any subsidiary
undertaking.
Non-Executive Directors
John Eccles
Aged 72, John Eccles was appointed Chairman in 1982. He is a Director of Govett Strategic Investment Trust plc,
and was previously Chairman of Courtaulds Textiles plc.
John Bather
Aged 69, John Bather has been a Director since 1964. He was formerly Managing Director and now serves as
Deputy Chairman.
Nick Kuenssberg
Aged 60, he was appointed a Director in 1999. He is Chairman of Iomart Group plc, GAP Group Ltd and chairman
and director of other companies.
CHAMBERLIN & HILL Plc  Annual Report 2003 6 Executive Directors
Barrie Williams
Aged 59, he joined the Company in 1965. Having spent some years as Works Manager of the Walsall foundry,
he was appointed a Director in 1976, becoming Chief Executive in 1995.
Peter Bell
Aged 52, he joined the Company in 1969 and was appointed Company Secretary in 1987. He was appointed to
the Board in 1995.
Adam Vicary
Aged 35, he joined the Company in 1988 and was appointed to the Board in September 2001. Having spent the
last three years as Managing Director at Ductile Castings Limited, he has now taken on responsibility for foundry
operations.
Special Business
Authority to purchase own shares
At the Annual General Meeting in 2002, the Board was given authority to purchase and cancel up to 730,000 of
its own shares representing 10% of the Company’s then existing issued share capital, through market purchases
on The London Stock Exchange. The maximum price to be paid on any exercise of the authority was restricted
to 105% of the average of the middle market quotation for the shares for the five dealing days immediately
preceding the day of a purchase. The minimum price which may be paid for each share is 25 pence. No purchases
have been made.
The current authority to make market purchases expires at the forthcoming Annual General Meeting. The Directors
have resolved, if the right circumstances exist, to exercise the current authority which remains valid until the Annual
General Meeting, and will continue to consider circumstances in which they may exercise this authority. They are
now seeking the approval of shareholders for the renewal of this authority upon the same terms, save that the
authority is now sought to allow the Company to purchase and cancel up to 730,000 of its own shares, representing
10% of its issued share capital at 23 May 2003. The authority is sought by way of a special resolution, details of
which are also included in the notice of the meeting at item 7 on page 35. This authority will only be exercised if
the Directors, in the light of market conditions prevailing at the time, expect it to result in an increase in earnings
per share, and if it is in the best interests of the shareholders generally. Account will also be taken of the effect on
gearing and the overall position of the Company.
Substantial shareholders
At 23 May 2003 the Company is aware of the following interests of 3% or more of the Company’s share capital:
Number of % of Issued 
shares Share Capital
Rights and Issues Investment Trust PLC 1,000,000 13.63
Mrs. A. C. Thorburn 640,000 8.72
Imperial Pensions Nominees Ltd. 575,000 7.83
Discretionary Unit Fund 500,000 6.81
Mr. M. E. Love & Mrs. J. M. Love 263,158 3.58
Citifriends Nominees Ltd 250,000 3.40
Perfecta Assets Ltd 240,000 3.27
Report of the Directors
Annual Report 2003  CHAMBERLIN & HILL Plc 7 Report of the Directors
Statement of Directors’ responsibilities
The Directors are required by law to prepare financial statements for each year which give a true and fair view of
the state of affairs of the Company and of the Group as at the end of the financial year and of the profit or loss for
the year and comply with the Companies Act 1985. They are responsible for maintaining adequate accounting
records, for safeguarding the assets of the Company and of the Group and for taking reasonable steps to prevent
and detect fraud and other irregularities.
The Directors confirm that applicable accounting standards have been followed and that suitable accounting
policies have been consistently applied and that reasonable and prudent judgements and estimates have been used
in the preparation of the financial statements which have been prepared on a going concern basis.
Charitable and political donations
Donations to UK charitable organisations amount to £950 (2002: £1,500). There were no political donations.
Employee involvement
Arrangements which existed in the year under review and for many years past for the involvement of employees
have included management/employee briefings, union meetings and health and safety committees.
Policy on payments to creditors
The Group has a variety of payment terms with its suppliers. These are either negotiated along with other contract
terms or conform to standard terms applied either by the relevant Group Company or by the supplier. In respect of
all its suppliers it is the Group’s policy to settle the terms of payment when entering into a business relationship with
a supplier, to ensure that suppliers are aware of the terms of payment, and to abide by the terms of payment.
The Group’s average creditor payment period at 31 March 2003 was 50 days (2002: 52 days) and that of the
Company was 47 days (2002: 51 days).
Employment of disabled people
The Group support the employment of disabled people wherever possible, through recruitment and by retention of
those who become disabled during their employment. It is Group policy that disabled people should, as far as
possible, have identical training, career development and promotion to those who do not suffer from disabilities.
Research and Development
The Group’s research and development activities in the year are referred to in the Chief Executive’s Review.
Auditors
Heathcote & Coleman have indicated their willingness to continue in office, and a resolution proposing their
re-appointment as auditors will be submitted to the Annual General Meeting.
By order of the Board
Peter Bell
Secretary
27 May 2003
CHAMBERLIN & HILL Plc  Annual Report 2003 8 Principles of good governance
The Company is committed to high standards of corporate governance and has applied the principles set out in
Section 1 of the Combined Code (the “Code”) as set out below and in the report of the Remuneration Committee.
The Group complied with all of the provisions set out in Section 1 of the Combined Code on Corporate Governance
except in the case of two Executive Directors where the notice periods in their service agreements exceed
12 months as explained in the Directors’ Remuneration Report.
(a) The Board
The Board currently comprises a Non-Executive chairman, two other Non-Executive Directors and three
Executive Directors. The Directors (including Non-Executive Directors) have a range of experience and are of
sufficient calibre to bring independent judgement to bear on issues of strategy, performance, resources and
standards of conduct which is vital to the success of the Company. The Board meets at least eight times a
year and additionally when necessary. At each scheduled meeting of the Board, the Chief Executive reports
on the Company’s operations and the Finance Director reports on the financial position of the Company. To
enable the Board to discharge its duties, all Directors receive appropriate and timely information. Briefing
papers are distributed by the Company Secretary to all Directors in advance of Board meetings. In addition
the Board has adopted standard procedures and practices whereby significant issues affecting the Company
are reviewed on a regular basis. Nick Kuenssberg is the senior independent Non-Executive director.
If appropriate, all Directors have the authority to take independent legal advice and have direct access to the
Company Secretary.
(b) Chairman and Chief Executive
The Chairman of the Company is a Non-Executive Director who is responsible for the running of the Board.
The Board is responsible to shareholders for the overall direction and control of the Company, and the Chief
Executive is responsible to the Board for management of the Company within parameters set by the Board.
(c) Service Contracts
See Page 12 in the Directors’ Remuneration Report.
(d) Supply of information
The Board is satisfied that it is provided with information in an appropriate form and quality to enable it to
discharge its duties.
(e) Appointments to the Board
The Board as a whole acts as the Nomination Committee for the purpose of considering new Board appointments.
(f) Re-election
All Directors submit themselves for re-election at least once every three years.
(g) Directors’ Remuneration
The statement of the Company’s policy on Executive Directors’ Remuneration and details of Directors’
Emoluments are contained on pages 11 to 14.
(h) Relations with Shareholders
The Chief Executive and Finance Director hold meetings from time to time with major shareholders to discuss
the Company’s strategy and financial performance.
The Board uses the Annual General Meeting to communicate with private and institutional investors and
welcomes their participation.
(i) Audit Committee
The Audit Committee, which consists of three Non-Executive Directors - John Eccles, Chairman, John Bather
and Nick Kuenssberg, meets at least twice a year with the external auditors in attendance when required. It
assists the Board in ensuring that appropriate accounting policies, financial systems, internal controls and
compliance procedures are in place.
Corporate Governance
Annual Report 2003  CHAMBERLIN & HILL Plc 9 Corporate Governance
(j) Remuneration Committee
The Remuneration Committee comprises three Non-Executive Directors. Further details are shown in the
Directors’ Remuneration Report.
(k) Annual General Meeting
All Directors attend the Annual General Meeting and are available to answer questions put to them by
shareholders.
(l) Internal Control
The Board is responsible for the Group’s system of internal control and for reviewing its effectiveness in
accordance with the guidance set out in “Internal Control: Guidance for Directors on the Combined Code”
(the Turnbull Guidance). However, such a system is designed to manage rather than eliminate the risk of
failure to achieve business objectives and can provide only reasonable and not absolute assurance against
material misstatement or loss.
The Code has a requirement that the Directors review the effectiveness of the Group’s system of internal
controls. This includes internal financial controls and controls over financial, operational, compliance and risk
management. The Board confirm that regular reviews were carried out and there was full compliance
throughout the year. The Board confirms that there is an ongoing process for identifying, evaluating and
managing the significant risks affecting the Group and its business and the financial implications of these risks.
Procedures are in place to monitor and manage such risks. The Group operates a risk management process
whereby each business identifies its key risks, the probability of those risks occurring, their potential impact,
and action needed to manage them.
The Group has established procedures for planning and budgeting and monitoring the operational and
financial performance of all businesses in the Group, as well as their compliance with applicable laws and
regulations. These procedures include:
 Clear responsibilities on the part of line and financial management for good financial controls in the
production of accurate and timely financial management information.
 The control of key financial risks through clearly laid down authorisation levels and proper segregation
of accounting duties.
 Detailed monthly budgeting and reporting of trading results, balance sheets and cash flows with regular
reviews of variances from budgets by management and the Board.
 Reporting on compliance with the internal financial controls and procedures by the Finance Director and
at the year end by external auditors. Interim and Annual Reports are reviewed by the Audit Committee
prior to issue.
The Board has undertaken an assessment of the need for a Group internal audit function. The Board considers
that the control systems and procedures undertaken by the Group are adequately performed by the
management and therefore does not currently propose to introduce a Group internal audit function, but will
keep it under review.
(m) Going Concern
After making appropriate enquiries, the Directors consider that the Group has adequate resources to continue in
operation for the foreseeable future. In forming this view the Directors have reviewed budgets and other financial
information. For this reason, they continue to adopt the “Going Concern” basis in preparing the accounts.
By order of the Board
Peter Bell
Secretary
27 May 2003
CHAMBERLIN & HILL Plc  Annual Report 2003 10 Remuneration Committee
The Remuneration Committee comprises three Non-Executive Directors – Nick Kuenssberg, Chairman, John Eccles
and John Bather. The Committee meets when necessary and is responsible for determining the remuneration policy
and packages of the Executive Directors.
Policy on remuneration of Executive Directors and Senior Executives
The Committee aims to ensure that remuneration packages offered are designed to attract, maintain and motivate
high calibre Directors and senior executives. The remuneration policy attempts to match the interests of the
executives with those of shareholders by providing:-
(a) Basic salary and benefits
Executive Directors’ basic salaries are reviewed each year, taking into account the performance of the
individual and rates of salary for similar jobs in companies of comparable size. The main benefits provided are
company cars and health insurance.
The Company operates defined benefit and defined contribution pension schemes for the majority of its
employees, including Executive Directors. No performance related bonuses nor benefits in kind are included
in pensionable salary.
(b) Annual performance related bonus scheme
Barrie Williams and Peter Bell receive annual bonus payments dependent on improvement in earnings per
share and the end of year cash position. The maximum amount of bonus payable is 60% of their basic salary.
Adam Vicary receives annual bonus payments dependent on both annual profit targets and on the improvement
in earnings per share and the end of year cash position. The maximum amount payable is 60% of his basic salary. 
(c) Share options
An incentive to achieve longer-term improvements in shareholder value is afforded through share options. An
Approved Scheme and an Unapproved Scheme for Senior Executives were established in 1997. 
Option grants are exercisable only upon the achievement of performance targets to be determined by the
Committee when options are granted. Currently performance targets are that growth in the normalised
earnings per share over a period of three consecutive financial years of the company (commencing no earlier
than the financial year in which the option is granted) shall exceed the growth in the Retail Prices Index for
the same period by at least 6%.
Performance Graph
The following graph shows the Company’s performance compared to the performance of the FTSE engineering and
machinery index over a five year period, measured by total shareholder return. This index has been selected as an
appropriate benchmark because it represents the market sector in which the Company operates.
Total shareholder return is calculated to show the theoretical growth in the value of a shareholding over a specified
period, assuming that dividends are re-invested to purchase additional shares.
Directors’ Remuneration Report
Annual Report 2003  CHAMBERLIN & HILL Plc 11
40 
60 
80 
100 
120 
140 
160 
FTSE Engineering & Machinery Index Chamberlin & Hill
1998/99 1999/00 2000/01 2001/02 2002/03
Value £ Directors’ Remuneration Report
Service contracts
Barrie Williams and Peter Bell have written service contracts dated 25 April 1996 containing provision for
termination on giving two years’ notice, which in the opinion of the Board is consistent with the need for
Directors to take a long-term rather than a short-term view in their conduct and planning of the Company’s affairs.
Adam Vicary has a one year rolling contract dated 28 June 1999.
Non-Executive Directors
Remuneration of Non-Executive Directors is approved from time to time by the Board as a whole within the limits
set out in the Articles of Association. The Non-Executive Directors do not have formal contracts.
Directors’ remuneration and pension entitlements
The auditors have reported on the information contained in this section of the report.
Directors’ emoluments
Total emoluments
excluding pensions
Basic Annual
salary Fees Benefits bonus 2003 2002
£000 £000 £000 £000 £000 £000
Executive
Barrie Williams 111 – 23 16 150 136
Peter Bell 86 – 8 13 107 106
Adam Vicary (from 27.09.01) 63 – 11 57938
Alf Edwards (to 27.07.01) ––––– 35
Non-Executive
John Eccles – 30 3 – 33 34
John Bather – 18 2 – 20 20
Nick Kuenssberg – 18* –– 18 18
Total 260 66 47 34 407 387
Total 2001/2002 246 66 39 36 387
*Includes consultancy fees in respect of services provided to the Company.
Benefits include all assessable tax benefits arising from employment by the Company, and relate mainly to the
provision of company cars.
The figures above represent emoluments earned as Directors during the relevant financial year. Such emoluments
are paid in the same financial year with the exception of bonuses which are paid in the year following that in which
they are earned.
CHAMBERLIN & HILL Plc  Annual Report 2003 12 Directors’ pensions
Retirement benefits accrue to three Directors under the Chamberlin & Hill Staff Pension and Life Assurance Scheme
which is a defined benefit scheme:-
Increase
Change in in transfer
Change in accrued Accrued value 
Age Accrued accrued benefit benefit at Transfer Directors’ net of Transfer
at benefit at benefit due to 31 March value at contribu- directors’ value at
year 31 March due to other 2003 31 March tions contribu- 31 March
end 2002 inflation factors (Note 1) 2002 (note 2) tions 2003
£000 £000 £000 £000 £000 £000 £000 £000
Barrie Williams 59 66 1 2 69 753 8 188 949
Peter Bell 52 45 1 1 47 350 6 78 434
Adam Vicary 35 8 – 19 26 47 37
Notes:-
1. The pension entitlement shown is that paid annually at normal retirement age of 63, based on service to
31 March 2003.
2. These relate to the contributions paid or payable in the year by the Directors under the terms of the scheme.
3. All transfer values have been calculated on the basis of actuarial advice in accordance with Actuarial Guidance
Note GN11 on the assumption that all Directors will retire at 63. The transfer values disclosed above do not
represent a sum paid or payable to the individual director. Instead they represent a potential liability of the
pension scheme.
Additional information:-
(a) On death before retirement, in addition to life assurance benefits, a lump sum is payable equal to the Director’s
accumulated contributions together with a spouse’s pension of 50% of the Director’s expected pension. On
death after retirement, a spouse’s pension is payable of 55% of the Director’s pension at the date of death.
(b) The early retirement equivalent of the accrued pension can be taken from age 50, with the consent of the
Company.
(c) Pension increases will be in line with statutory requirements and the ordinary provisions of the scheme before
and after retirement.
(d) There are no discretionary benefits.
Directors’ shareholdings
Beneficial interests of the Directors in the shares of the Company, including those of their families were:-
31 March 31 March
2003 2002
John Eccles 240,750 240,750
John Bather 771,018 771,018
Barrie Williams 50,000 44,000
Peter Bell 18,000 18,000
Nick Kuenssberg 25,000 20,000
Adam Vicary 1,100 1,100
John Bather had a non-beneficial interest in the share capital of the Company at 31 March 2003 of 25,000 shares
(2002: 25,000). John Eccles had a non-beneficial interest in the share capital of the Company at 31 March 2003 of
15,000 shares (2002: 15,000). There have been no changes in the interests set out above between 1 April 2003
and 23 May 2003.
Directors’ Remuneration Report
Annual Report 2003  CHAMBERLIN & HILL Plc 13 Directors’ Remuneration Report
Directors’ options
Exercised 
31 March Granted during 31 March Option 
2003 in year year 2002 price Exercisable between
Barrie Williams –– (18,750) 18,750 160p 10.09.2000-09.09.2007
26,250 –– 26,250 160p 10.09.2000-09.09.2004
30,000 –– 30,000 185p 16.11.2003-15.11.2007
10,000 10,000 –– 157.5p 01.08.2005-31.07.2009
Peter Bell 18,750 –– 18,750 160p 10.09.2000-09.09.2007
16,250 –– 16,250 160p 10.09.2000-09.09.2004
25,000 –– 25,000 185p 16.11.2003-15.11.2007
8,000 8,000 –– 157.5p 01.08.2005-31.07.2009
Adam Vicary 16,000 –– 16,000 185p 16.11.2003-15.11.2010
4,000 –– 4,000 185p 16.11.2003-15.11.2007
8,000 8,000 –– 157.5p 01.08.2005-31.07.2009
162,250 26,000 (18,750) 155,000
Option grants are exercisable only upon the achievement of the performance targets explained on page 11.
No consideration is payable for the grant of an option which is exercisable at a price to be determined by the
Committee at the time when the option is granted. This price may not be less than the greater of the market price
on the day on which the option is granted and the nominal value of an ordinary share.
During the year 26,000 share options were granted to Directors as above. 18,750 were exercised and none lapsed.
There have been no changes in the interests set out above between 1 April 2003 and 23 May 2003. The market
price of the shares in relation to which the options were exercised was £2.035 at the time of exercise.
Gains made by Directors on the exercise of share options amounted to £8,156 (2002: £nil). 
The mid-market price of the shares at 31 March 2003 was 150p and ranged between 221.0p and 140.0p during
the year.
On behalf of the Board.
Nick Kuenssberg
(Chairman, Remuneration Committee)
27 May 2003
CHAMBERLIN & HILL Plc  Annual Report 2003 14 We have audited the financial statements which comprise the profit and loss account, the balance sheets, the cash
flow statement, the statement of total recognised gains and losses and the related notes. We have also audited the
information in the Directors’ Remuneration Report that is described as having been audited. This report is made
solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s members those matters we are required to
state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company’s members as a body for our
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
The Directors are responsible for preparing the Annual Report and the Directors’ Remuneration Report. As
described on page 8 this includes responsibility for preparing the financial statements in accordance with applicable
United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the
United Kingdom by statute, the Auditing Practices Board, the Listing Rules of the Financial Services Authority and
by our profession’s ethical guidance.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the
financial statements and the part of the Directors’ Remuneration Report to be audited are properly prepared in
accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ Report is not
consistent with the financial statements, if the Company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if information specified by law regarding
Directors’ remuneration and transactions with the Group is not disclosed.
We review whether the statement on pages 9 and 10 reflects the Company’s compliance with the seven provisions
of the Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not
required to consider whether the Board’s statements on internal control cover all risks and controls, or to form an
opinion on the effectiveness of the Group’s corporate governance procedures, or its risk and control procedures.
We read the other information contained in the Annual Report, including the Corporate Governance statement
and the unaudited part of the Directors’ Remuneration Report, and consider whether it is consistent with the
audited financial statements. We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements.
Basis of Audit Opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements
and the part of the Directors’ Remuneration Report to be audited. It also includes an assessment of the significant
estimates and judgements made by the Directors in the preparation of the financial statements, and of whether the
accounting policies are appropriate to the Group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements and
the part of the Directors’ Remuneration Report to be audited are free from material misstatement, whether caused by
fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation
of information in the financial statements and the part of the Directors’ Remuneration Report to be audited.
Opinion
In our opinion:
 The financial statements give a true and fair view of the state of affairs of the Company and the Group as at
31 March 2003 and of the profit of the Group for the year then ended; and
 The financial statements and the part of the Directors’ Remuneration Report to be audited have been properly
prepared in accordance with the Companies Act 1985.
Heathcote & Coleman
Chartered Accountants and Registered Auditor
Birmingham
27 May 2003
Independent Auditors’ Report
to the members of Chamberlin & Hill plc
Annual Report 2003  CHAMBERLIN & HILL Plc 15 Consolidated Profit and Loss Account
for the year ended 31 March 2003
Notes 2003 2002
£000 £000
Turnover 2 27,027 30,548
Cost of sales (21,978) (24,017)
Gross profit 5,049 6,531
Other operating expenses 3 (3,676) (3,986)
Operating profit 1,373 2,545
Exceptional item - restructuring costs 5 (451) –
Profit before interest and taxation 922 2,545
Interest payable 6 (14) (19)
Profit on ordinary activities before taxation 7 908 2,526
Taxation 8 (250) (778)
Profit on ordinary activities after taxation 658 1,748
Dividends 9 (871) (866)
Transfer to reserves 20 (213) 882
Earnings per share: basic 11 9.0p 24.0p
adjusted 11 13.3p 24.0p
diluted 11 9.0p 24.0p
Dividend per share 11.85p 11.85p
Dividend cover 0.8 2.0
All items dealt with in arriving at the trading profit for both 2003 and 2002 relate to continuing activities.
Statement of Total Recognised Gains and Losses
for the year ended 31 March 2003
2003 2002
£000 £000
Profit after taxation 658 1,748
Prior Year Adjustment-adoption of FRS 19 “Deferred Taxation” – (752)
Total recognised gain 658 996
CHAMBERLIN & HILL Plc  Annual Report 2003 16 Notes 2003 2002
£000 £000 £000 £000
Fixed assets
Tangible assets 12 9,045 8,892
Intangible assets 13 215 229
9,260 9,121
Current assets
Stocks 14 3,282 3,362
Debtors 15 5,623 6,634
Cash at bank and in hand 692 626
9,597 10,622
Creditors: amounts falling due 
within one year 16 (4,449) (5,124)
Net current assets 5,148 5,498
Total assets less current liabilities 14,408 14,619
Provisions 18 (762) (790)
Net assets 13,646 13,829
Capital and reserves
Called up share capital 19 1,835 1,830
Share premium account 20 718 693
Capital redemption reserve 20 109 109
Revaluation reserve 20 591 599
Profit and loss account 20 10,393 10,598
Equity shareholders’ funds 13,646 13,829
John Eccles
Peter Bell
}
Directors
The Accounts were approved by the Board of Directors on 27 May 2003
Consolidated Balance Sheet
at 31 March 2003
Annual Report 2003  CHAMBERLIN & HILL Plc 17 Parent Company Balance Sheet
at 31 March 2003
Notes 2003 2002
£000 £000 £000 £000
Fixed assets
Tangible assets 12 5,506 6,034
Investments 22 7,159 7,159
12,665 13,193
Current assets
Stocks 14 1,090 981
Debtors 15 3,980 4,526
Cash at bank and in hand 357 1
5,427 5,508
Creditors: amounts falling due
within one year 16 (3,627) (5,818)
Net current assets 1,800 (310)
Total assets less current liabilities 14,465 12,883
Creditors: amounts falling due
after more than one year 17 (120) (120)
Provisions 18 (647) (678)
Net assets 13,698 12,085
Capital and reserves
Called up share capital 19 1,835 1,830
Share premium account 20 718 693
Capital redemption reserve 20 109 109
Revaluation reserve 20 591 599
Profit and loss account 20 10,445 8,854
Equity shareholders’ funds 13,698 12,085
John Eccles
Peter Bell
}
Directors
The Accounts were approved by the Board of Directors on 27 May 2003
CHAMBERLIN & HILL Plc  Annual Report 2003 18 Notes 2003 2002
£000 £000 £000 £000
Net cash inflow from operating activities 3,218 3,586
Return on investments and 
servicing of finance
Interest paid (24) (23)
Interest received 10 4
Net cash outflow from returns on 
investments and servicing of finance (14) (19)
Taxation
UK tax paid (679) (778)
Capital expenditure and financial investment
Purchase of fixed assets (1,710) (1,366)
Sale of fixed assets 91 293
Net cash outflow from capital expenditure
and financial investment (1,619) (1,073)
Equity dividends paid (870) (844)
Net cash flow before financing 36 872
Financing
Repayment of loan notes – (504)
Issue of shares (including premium) 30 80
Net cash inflow/(outflow) from financing 30 (424)
Increase in cash and bank balances 26 66 448
Reconciliation of operating profit to
net cashflow from operating activities
Operating profit 1,373 2,545
Exceptional item – restructuring costs (451) –
Depreciation 1,556 1,541
Profit on disposal (76) (95)
Government grants credited (5) (10)
Decrease/(increase) in stocks 80 (40)
Decrease in debtors 1,011 288
(Decrease) in creditors (270) (643)
3,218 3,586
Consolidated Cash Flow Statement
for the year ended 31 March 2003
Annual Report 2003  CHAMBERLIN & HILL Plc 19 Notes to the Accounts
1. ACCOUNTING POLICIES
Basis of accounting and consolidation
The accounts have been prepared in accordance with applicable United Kingdom Accounting Standards and
under the historical cost convention. Certain assets included at revalued amounts, prior to the implementation
of FRS 15 “Tangible Fixed Assets” continue to be carried at those revalued amounts less depreciation. The
last valuation was carried out in 1980. The principal accounting policies have been applied consistently.
The consolidated accounts incorporate the accounts of Chamberlin & Hill plc and subsidiary undertakings
made up to 31 March 2003. As provided by Section 230 of the Companies Act 1985 no separate profit and
loss account is included for the Parent Company. 
Turnover
Turnover is the total amount receivable for goods and services supplied to external customers of the Group
and excludes value added tax.
Depreciation
Depreciation is calculated on a straight-line basis to write off the cost of each asset over its estimated useful
life. The principal rates used were as follows:-
Freehold buildings 2%
Plant and machinery general plant 10%-20%
fixtures and fittings 10%-33%
patterns and tools 20%-50%
Motor vehicles 20%-33%
Freehold land is not depreciated.
Leasehold Buildings are depreciated over a period not longer than the unexpired period of the lease.
Stock and work in progress
Stock is stated at the lower of cost and net realisable value. In the case of work in progress and finished goods,
cost consists of selling price less appropriate deductions for margin and stage of production reached, such
basis being consistent with that of previous years.
Deferred taxation
Provision is made under the liability method to take account of timing differences between the treatment of
certain items for accounts purposes and their treatment for tax purposes, except any liability arising on a
taxable gain which has been “rolled over”. Deferred tax liabilities are not discounted.
Pensions
Pension schemes are operated by the Company and subsidiary undertakings employing the majority of Group
employees. Contributions to the schemes are charged to the profit and loss account so as to spread the
expected cost of pensions, calculated in accordance with actuarial advice, on a systematic basis over
employees’ working lives.
Leased assets
Assets acquired under finance leases have been recorded in the balance sheet as fixed tangible assets at their
equivalent capital value and are depreciated over the expected useful life of the asset. The corresponding
liability has been recorded as a creditor and the interest element of the lease payments is charged to the profit
and loss account over the period of the lease. Operating lease rentals are charged to the profit and loss
account as incurred.
CHAMBERLIN & HILL Plc  Annual Report 2003 20 1. ACCOUNTING POLICIES (continued)
Government grants
Capital based grants are credited to a deferred income account and released to the profit and loss account
over the useful life of the assets to which they relate. Revenue based grants are credited to the profit and loss
account in the year in which they are receivable.
Financial instruments
All short-term debtors and creditors are excluded from the disclosures of FRS 13 “Derivatives and other
financial instruments” other than currency risk disclosures. The Group uses foreign currency bank accounts
for hedging purposes in line with its risk management policy and no trading in financial instruments is
undertaken.
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling and recorded at the rate of
exchange ruling at the date of the transaction. Balances at the year end denominated in a foreign currency
are translated into sterling at the rate of exchange ruling at the balance sheet date.
Goodwill
Purchased goodwill prior to 31 March 1998, representing the difference between the consideration and the
fair value of net assets acquired, was immediately set off against reserves. On disposal of businesses, goodwill
previously written off under this policy is written back through the profit and loss account. Goodwill
previously eliminated against reserves has not been reinstated on implementation of FRS10. Positive goodwill
arising on acquisitions since 31 March 1998 is capitalised and amortised on a straight line basis over its useful
economic life up to a presumed maximum of 20 years. It is reviewed for impairment at the end of the first
full financial year following the acquisition and in other periods if events or changes in circumstances indicate
that the carrying value may not be recoverable.
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 21 Notes to the Accounts
2 SEGMENTAL ANALYSIS
(i)  By class of business
Foundries Light Engineering Total
2003 2002 2003 2002 2003 2002
£000 £000 £000 £000 £000 £000
Turnover
Total sales 18,167 20,181 9,003 10,654 27,170 30,835
Inter-segment sales (143) (287) – – (143) (287)
Sales to third parties 18,024 19,894 9,003 10,654 27,027 30,548
Profit
Trading profit 1,094 2,037 744 967 1,838 3,004
Common costs (465) (459)
1,373 2,545
Exceptional item – restructuring costs (451) –
Net interest payable (14) (19)
Group profit before taxation 908 2,526
Net assets
Segmental net assets 10,188 9,975 3,983 4,830 14,171 14,805
Unallocated assets 
and borrowings (525) (976)
Total net assets 13,646 13,829
(ii)  By geographical destination
2003 2002
Turnover £000 £000
United Kingdom 22,406 26,055
Europe 3,421 3,398
Other countries 1,200 1,095
27,027 30,548
3 OTHER OPERATING EXPENSES
2003 2002
£000 £000
Distribution costs 704 733
Administration and selling expenses 2,972 3,253
3,676 3,986
CHAMBERLIN & HILL Plc  Annual Report 2003 22 4 STAFF NUMBERS AND COSTS
The average number of people employed by the Group during the year was:
2003 2002
Management and administration 76 85
Production 392 418
Total employees 468 503
The aggregate employment costs of these employees excluding redundancy costs of £316,000
(2002: £106,000) were as follows:-
2003 2002
£000 £000
Wages and salaries 8,652 9,680
Social security costs 750 843
Other pension costs 440 485
9,842 11,008
Details of Directors’ remuneration, shareholdings, share options and pension entitlements are included within
the Directors’ Remuneration Report on pages 11 to 14.
5 EXCEPTIONAL ITEM - RESTRUCTURING COSTS
The exceptional item related to £278,000 in respect of redundancy costs in the foundries, and £173,000 in
respect of restructuring and re-organisation costs in the light engineering businesses. Taxation effect arising
on the exceptional item amounts to a credit of £135,000.
6 INTEREST PAYABLE
2003 2002
£000 £000
Bank interest receivable 10 4
Loan note interest payable – (1)
Bank overdraft interest payable (24) (22)
(14) (19)
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 23 Notes to the Accounts
7 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
2003 2002
£000 £000
This is stated after charging:
Profit on disposal of fixed assets (76) (95)
Depreciation of owned assets 1,542 1,527
Amortisation of Goodwill 14 14
Auditors’ remuneration (Company £12,000 (2002: £12,000)) 30 32
Rentals under operating leases: 
Hire of plant and equipment 33 33
Other 139 163
In addition to the above, the auditors received £23,000 (2002: £22,000) in the year for other services.
8 TAXATION
2003 2002
£000 £000
Current tax:
U.K. Corporation tax at 30% (2002: 30%)
based on taxable profit for the year 311 830
Prior year adjustment (33) (12)
278 818
Deferred taxation:
Movement in the year (28) (40)
250 778
Reconciliation of current tax charge
Profit on ordinary activities before tax 908 2,526 
Corporation tax at standard rate of 30% (2002: 30%) on profit before tax 273 758 
Adjusted by the effects of:-
Expenses not deductible for tax purposes 10 25 
Depreciation in excess of capital allowances 28 40 
Other movements (33) (5)
278 818 
9 DIVIDENDS
2003 2002
£000 £000
Paid:
Interim dividend of 3.85p per share (2002: 3.85p) 284 280
Proposed:
Final dividend of 8.00p per share (2002: 8.00p) 587 586
871 866
CHAMBERLIN & HILL Plc  Annual Report 2003 24 10 TRANSFER TO RESERVES
The profit dealt with in the accounts of the parent company was £1,583,000 (2002: £362,000).
This is after the receipt of a dividend of £2,500,000 (2002: £nil) from a subsidiary company.
11 EARNINGS PER SHARE
The calculation of earnings per share is based on the profit attributable to shareholders and the weighted
average number of ordinary shares in issue. In calculating the diluted earnings per share, adjustment has been
made for the dilutive effect of outstanding share options.  Earnings per share, excluding exceptional items of
£316,000 (2002: £nil) net of tax has also been disclosed as the Directors believe this allows an assessment of
the underlying trading performance of the Group.
2003 2002
£000 £000
Earnings for pre exceptional earnings per share 974 1,748
Exceptional item (451) –
Taxation effect of exceptional item 135 –
Earnings for basic and diluted earnings per share 658 1,748
2003 2002
000 000
Weighted average number of ordinary shares 7,336 7,274
Adjustment to reflect shares under options 13 10
Weighted average number of ordinary shares - fully diluted 7,349 7,284
12 TANGIBLE FIXED ASSETS
Land and Plant and Motor
Group Total buildings machinery vehicles
£000 £000 £000 £000
Cost or valuation
At 1 April 2002 25,641 4,104 20,841 696 
Additions 1,710 382 1,295 33 
Disposals (187) – (93) (94)
At 31 March 2003 27,164 4,486 22,043 635
At cost 25,822 3,144 22,043 635 
At valuation 1980 1,342 1,342 ––
27,164 4,486 22,043 635 
Depreciation
At 1 April 2002 16,749 1,007 15,390 352 
Charge for year 1,542 97 1,330 115 
Disposals (172) – (93) (79)
At 31 March 2003 18,119 1,104 16,627 388 
Net book value
At 31 March 2003 9,045 3,382 5,416 247
At 31 March 2002 8,892 3,097 5,451 344 
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 25 Notes to the Accounts
12 TANGIBLE FIXED ASSETS (continued)
Net book value of land and buildings comprises:- 2003 2002
£000 £000
Freehold 3,304 3,006
Short leasehold 78 91
3,382 3,097
Land and Plant and Motor
Company Total buildings machinery vehicles
£000 £000 £000 £000
Cost or valuation
At 1 April 2002 17,051 2,512 14,175 364 
Additions 415 – 415 –
Disposals (134) – (93) (41)
Disposals to subsidiary undertakings (5) –– (5)
At 31 March 2003 17,327 2,512 14,497 318
At cost 15,985 1,170 14,497 318 
At valuation 1980 1,342 1,342 ––
17,327 2,512 14,497 318 
Depreciation
At 1 April 2002 11,017 705 10,122 190 
Charge for year 930 45 828 57 
Disposals (126) – (93) (33)
At 31 March 2003 11,821 750 10,857 214
Net book value
At 31March 2003 5,506 1,762 3,640 104
At 31 March 2002 6,034 1,807 4,053 174 
Group Company
£000 £000
Freehold land included above not subject to depreciation amounted to: 708 408 
The amount of freehold land and buildings determined according to the historical cost accounting rules is as
follows:
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Cost 3,789 3,407 1,775 1,775
Depreciation (1,011) (949) (684) (648)
Net book value 2,778 2,458 1,091 1,127
CHAMBERLIN & HILL Plc  Annual Report 2003 26 13 INTANGIBLE FIXED ASSETS - GOODWILL
Total
£000
Cost
At 1 April 2002 and 31 March 2003 271
Amortisation
At 1 April 2002 42
Charge for year 14
At 31 March 2003 56
Net Book Value
At 31 March 2003 215 
At 31 March 2002 229
14 STOCKS
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Raw materials 1,077 1,216 146 145
Work in progress 594 685 267 295
Finished goods 1,611 1,461 677 541
3,282 3,362 1,090 981
15 DEBTORS
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Due within one year
Trade debtors 5,475 6,363 2,550 3,092
Other debtors 2 68 – 2
Prepayments 146 203 55 82
Amounts due from subsidiary undertakings – – 1,375 1,350
5,623 6,634 3,980 4,526
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 27 Notes to the Accounts
16 CREDITORS
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Amounts falling due within one year
Bank overdraft (repayable on demand) – – – 275
Trade creditors 2,679 2,872 1,176 1,314
Corporation tax 107 508 16 189
Other taxation and social security 448 562 188 267
Other creditors 132 141 104 112
Accruals 496 455 254 233
Proposed dividend 587 586 587 586
Amounts owed to subsidiary undertakings – – 1,302 2,842
4,449 5,124 3,627 5,818
17 CREDITORS
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Amounts falling due after more than one year
Amounts owed to subsidiary undertakings – – 120 120
The amount owed by the Company to non-trading subsidiary undertakings is a non-interest bearing loan, and
is repayable in more than five years.
18 PROVISION FOR LIABILITIES AND CHARGES
Deferred taxation
Group Company
2003 2002 2003 2002
Movement in deferred taxation during the year £000 £000 £000 £000
Balance brought forward 790 830 678 710
(Credit) for the year (28) (40) (31) (32)
762 790 647 678
CHAMBERLIN & HILL Plc  Annual Report 2003 28 18 PROVISION FOR LIABILITIES AND CHARGES (continued)
2003 2002
Amount not Amount Amount not Amount
provided provided provided provided
£000 £000 £000 £000
Group
Capital allowances – 762 – 790
Capital gains 475 – 475 –
475 762 475 790
Company
Capital allowances – 647 – 678
Capital gains 392 – 392 –
392 647 392 678
No provision has been made for deferred tax on the surplus on revaluation of land and buildings as it is
anticipated that such potential liabilities will be deferred indefinitely.
19 SHARE CAPITAL
2003 2002
£000 £000
Authorised
9,000,000 (2002: 9,000,000) Ordinary shares of 25p 2,250 2,250
Allotted, called up and fully paid 
7,340,908 (2002: 7,322,158) Ordinary shares of 25p 1,835 1,830
During the year the company issued 18,750 shares of 25p each at 160p following the exercise of options
under the executive share option schemes.  During the previous year 50,000 shares were issued. During the
year 28,500 share options lapsed and options for 44,000 shares were granted.
Options outstanding at 31 March 2003 were:
No. of shares Price payable Exercisable between
37,500 160p 10.09.2000-09.09.2007
48,750 160p 10.09.2000-09.09.2004
46,000 185p 16.11.2003-15.11.2010
74,000 185p 16.11.2003-15.11.2007
26,000 157.5p 01.08.2005-30.07.2009
18,000 157.5p 01.08.2005-31.07.2012
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 29 Notes to the Accounts
20 RESERVES
Capital Share Profit
redemption premium Revaluation and loss
reserve account reserve account
£000 £000 £000 £000
Group
At 1 April 2002 109 693 599 10,598 
Arising on issue of shares – 25 ––
Retained loss for the year ––– (213)
Transfer between reserves –– (8) 8 
At 31 March 2003 109 718 591 10,393
Company
At 1 April 2002 109 693 599 8,854 
Arising on issue of shares – 25 ––
Retained profit for the year ––– 1,583 
Transfer between reserves –– (8) 8 
At 31 March 2003 109 718 591 10,445 
The cumulative amount of goodwill written off against reserves is £3,663,000 (2002: £3,663,000)
21 RECONCILIATION OF MOVEMENT IN SHAREHOLDERS’ FUNDS
2003 2002
£000 £000
Profit for the year 658 1,748
Dividends (871) (866)
Issue of share capital 30 80
Net movement in the year (183) 962
Shareholders’ funds at 31 March 2002 13,829 12,867
Shareholders’ funds at 31 March 2003 13,646 13,829
22 FIXED ASSET INVESTMENTS
2003 2002
£000 £000
Shares in subsidiary undertakings
At cost less amounts written off 7,159 7,159
Wholly owned operating Principal activity
subsidiaries
Fred Duncombe Ltd Architectural hardware
Ductile Castings Ltd. Large engineering castings
PFP Electrical Products Ltd. Lighting, switchgear and electrical installation products
The Company owns 100% of the issued ordinary share capital of the above companies, all of whom operate
principally in England and Wales.
CHAMBERLIN & HILL Plc  Annual Report 2003 30 23 PENSION ARRANGEMENTS
During the year, the Group operated funded defined benefit and defined contribution pension schemes for
the majority of its employees, these being established under trusts with the assets held separately from those
of the Group. The pension cost for the Group for 2003 was £440,000 (2002: £485,000). The defined benefit
scheme was effectively closed to new members from 1 April 2001.
The staff scheme is a defined benefits scheme providing benefits based on final salary. Contributions for the
scheme are charged to the profit and loss account so as to spread the cost of pensions over members’ working
lives with the Group. The pension cost charged to the profit and loss account is calculated by a qualified
actuary and is determined as a substantially level percentage of the current and expected future pensionable
payroll. The pension cost has been projected from the actuarial valuation carried out as at 1 April 2001 which
used the projected unit method. The market value of the scheme’s assets on that date was £9,957,000 and
the actuarial value of these assets represented 93% of the benefits that had accrued to members allowing for
expected future increases in salaries (which from 1 April 2002 are limited by inflation).
The assumptions having the greatest effect on the pension costs are those relating to the rate of return on
the scheme investments and the rate of increase in salaries. In calculating the pension cost it was assumed
that over the long-term the yield earned on investments would exceed the rate of salary increases by
3.4% per annum and the statutory “LPI” rate of increase to pensions in payment (other than GMPs) by
2.9% per annum.
The other schemes are defined contribution schemes and the pension cost represents contributions payable.
SSAP24 AND FRS17
The financial statements have, as last year, been prepared in accordance with SSAP24. However, following
the introduction of FRS17 this note now includes below the additional disclosures required in respect of
defined benefit schemes under the transitional arrangements established by FRS17.
The full actuarial valuation carried out at 1 April 2001 was updated to 31 March 2002 and 31 March 2003
by the qualified independent actuary. The major assumptions used by the actuary were (in nominal terms):
At 31 March At 31 March
2003 2002
Rate of increase in salaries 2.6% 2.8%
Rate of increase of pensions in payment- post 1997 accrual only 2.6% 2.8%
Discount rate 5.4% 6.0%
Inflation  assumption 2.6% 2.8%
The assets in the scheme and the expected rate of return were:
As at 31 March 2003 As at 31 March 2002
Rate of Asset Rate of Asset
return Value Return Value
% £000 % £000
Equities 7.00 4,977 7.50 6,631 
Gilts 4.00 1,093 4.75 3,046 
Bonds 4.90 1,672 5.50 –
Cash 3.50 198 3.50 116 
Total market value of assets 7,940 9,793 
Actuarial value of liability (12,180) (10,893)
Recoverable deficit in scheme (4,240) (1,100)
Related deferred tax asset 1,272 330 
Net pension liability (2,968) (770)
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 31 Notes to the Accounts
23 PENSION ARRANGEMENTS (continued)
The effect this would have on the net assets of the group at 31 March 2003 is as follows:
At 31 March At 31 March
2003 2002
Net assets excluding pension liability 13,646 13,829 
Net pension liability (2,968) (770)
Net assets including pension liability 10,678 13,059 
Profit and loss account excluding pension reserve 10,393 10,598 
Pension reserve (2,968) (770)
Profit and loss account including pension reserve 7,425 9,828 
Analysis of the amount chargeable to operating profit
Year to
31 March
2003
£000
Service cost 354 
Past service cost 5 
Total operating charge 359 
Analysis of net return on pension scheme
Year to
31 March
2003
£000
Expected return on pension scheme assets 640 
Interest on pension liabilities (647)
Net return (7)
Analysis of amount recognised in statement of total recognised gains and losses (STRGL)
Year to
31 March
2003
£000
Actual return less expected return on assets (2,307)
Experience gains and losses on liabilities –
Changes in assumptions (767)
Actuarial loss recognised in STRGL (3,074)
CHAMBERLIN & HILL Plc  Annual Report 2003 32 23 PENSION ARRANGEMENTS (continued)
Movement in deficit during the year
Year to
31 March
2003
£000
Deficit in scheme at beginning of year (1,100)
Movement in year:
Current service cost (354)
Contributions 300 
Past service costs (5)
Net return on assets (7)
Actuarial loss (3,074)
Deficit in scheme at end of year (4,240)
History of experience gains and losses
Year to
31 March
2003
Difference between expected and actual return on scheme assets
amount (£000s) (2,307)
percentage of scheme assets (29.1%)
Experience gains and losses on scheme liabilities
amounts (£000s) –
percentage of scheme liabilities –
Total amount recognised in statement of total recognised gains and losses:
amount (£000s) (3,074)
percentage of scheme liabilities (25.2%)
24 CONTINGENT LIABILITIES
Cross guarantees exist between the Company and its subsidiary undertakings in respect of the Group’s bank
overdrafts. The borrowings of the subsidiaries at 31 March 2003 amounted to £nil (2002: £nil).
Notes to the Accounts
Annual Report 2003  CHAMBERLIN & HILL Plc 33 Notes to the Accounts
25 FINANCIAL COMMITMENTS
Group Company
2003 2002 2003 2002
£000 £000 £000 £000
Capital expenditure
Contracted for but not provided in the accounts 56 1,292 17 265
Lease commitments
The Group had annual commitments under operating leases as follows:
Land and buildings Other
2003 2002 2003 2002
£000 £000 £000 £000
Leases terminating:
within one year – – – –
between two and five years 43 43 6 5
after more than five years 96 96 – –
26 RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS
2003 2002
£000 £000
Increase in cash in the year 66 448
Cash outflow from debt and lease financing – 504
Change in net funds arising from cashflows 66 952
Net funds at 31 March 2002 626 (326)
Net funds at 31 March 2003 692 626
27 CURRENCY ANALYSIS
The Group’s functional currency is sterling. At the year end it had net monetary assets/(liabilities)
denominated in Euros of £434,000 (2002: £(18,000)).  During the year the Group has used forward contracts
to reduce its exposure to currency exchange risk.
CHAMBERLIN & HILL Plc  Annual Report 2003 34 Notice is hereby given that the Annual General Meeting of the Company will be held on Friday 25 July 2003 at
the Registered Office, Chuckery Foundry, Walsall at 12.30 p.m. for the following purposes.
Ordinary business
1. To receive the Report of the Directors and Statement of
Accounts for the year ended 31 March 2003 (Resolution 1)
2. To declare a Final Dividend on the Ordinary Shares. (Resolution 2)
3. To re-elect as a Director Barrie Williams who is retiring by rotation
pursuant to article 107 of the Company’s Articles of Association (Resolution 3)
4. To re-elect as a Director Nick Kuenssberg who is retiring by rotation
pursuant to article 107 of the Company’s Articles of Association. (Resolution 4)
5. To approve the Directors’ Remuneration Report for the year ended 31 March 2003 (Resolution 5)
6. To re-appoint Heathcote & Coleman as Auditors and authorise
the Directors to fix their remuneration. (Resolution 6)
Special Business
7. To consider and, if thought fit, pass the following as a special resolution:
That the Company be and hereby is generally and unconditionally authorised to make market purchases
(within the meaning of section 163(3) of the Companies Act 1985) of Ordinary shares of 25p each in the
capital of the Company (“Ordinary shares”) provided that:-
(i) the maximum number of Ordinary shares which may be purchased is 730,000;
(ii) the minimum price which may be paid for each Ordinary share is 25 pence;
(iii) the maximum price which may be paid for each Ordinary share is an amount equivalent to 105 per cent
of the average of the middle market quotations for an Ordinary share as derived from the Daily Official
List of the United Kingdom Listing Authority for the five dealing days immediately preceding the day
on which the Ordinary share in question is purchased; and
(iv) the authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of the
Company or (if earlier) within 12 months from the date of passing this resolution (except in relation to
the purchase of Ordinary shares the contract for which remains wholly or partly executory at that time)
unless such authority is renewed prior to that time. (Resolution 7)
8. To transact any other business of an Annual General Meeting.
Any member of the Company entitled to attend and vote may appoint another person (whether a member or not)
as his proxy to attend and vote on a poll instead of him, for which purpose a form of proxy is enclosed. Proxies
must be lodged at the office of the Company’s Registrars, Neville Registrars Ltd, 18 Laurel Lane, Halesowen, West
Midlands B63 3DA, not later than 48 hours before the time of the Meeting. Completion and return of the form of
proxy in accordance with its instructions will not prevent a member from attending and voting at the Meeting
instead of their proxy if they wish.
By order of the Board
Peter Bell Chuckery Foundry
Company Secretary Walsall
23 June 2003 WS1 2DU
General Information
Warrants for the final dividend, if approved at the Meeting, will be posted on 25 July 2003 to shareholders
registered at the close of business on 4 July 2003.
There will be available for inspection at the Registered Office of the Company during normal business hours
(Saturdays and Public Holidays excepted) from the date of this notice until the conclusion of the Annual General
Meeting:-
(a) Particulars of the transactions of Directors and of their family interests in the shares of the Company.
(b) Copies of contracts of service of Directors with the Company or with any of its subsidiary undertakings.
An explanation of Resolution 7 is set out in the Report of the Directors on page 7.
Members should notify the Registrars without delay of any change of address.
Notice of Meeting
Annual Report 2003  CHAMBERLIN & HILL Plc 35 Financial History
2003 2002 2001 2000 1999
£000 £000 £000 £000 £000
Turnover 27,027 30,548 32,521 31,531 30,061
Operating profit 1,373 2,545 2,965 3,308 3,026
Exceptional item (451) – (340) ––
Interest (payable)/receivable (14) (19) (32) (7) 28
Profit before taxation 908 2,526 2,593 3,301 3,054
Taxation (250) (778) (783) (932) (1,002)
Profit after taxation 658 1,748 1,810 2,369 2,052
Dividends (871) (866) (836) (800) (788)
Transfer to reserves (213) 882 974 1,569 1,264
Operating profit as a percentage
of turnover 5.1 8.3 9.1 10.5 10.1
Basic earnings per share (pence) 9.0 24.0 24.9 30.9 26.7
Adjusted earnings per share (pence) 13.3 24.0 28.2 30.9 26.7
(excluding exceptional items)
Dividend per share (pence) 11.85 11.85 11.50 11.00 10.20
£000 £000 £000 £000 £000 
Funds employed 13,646 13,829 12,867 11,893 11,136 
Percentage of operating profits 
to funds employed 10.1 18.4 23.0 27.8 27.2
CHAMBERLIN & HILL Plc  Annual Report 2003 36 Manufacturing Units
Principal activities and markets
WALSALL FOUNDRY
Chuckery Road
Walsall, WS1 2DU
Tel: 01922 721411   Fax: 01922 638370
Small repetition grey iron castings, principally for the
automotive sector and hydraulic applications.
BLOXWICH FOUNDRY
Reeves Street,
Bloxwich, WS3 2DW
Tel: 01922 49200   Fax: 01922 710791
Small castings in malleable and SG iron, mainly associated
with the automotive, construction and transport industries.
DUCTILE CASTINGS LTD
Trent Foundry, Dawes Lane
Scunthorpe DN15 6UW
Tel: 01724 862152   Fax: 01724 280461
Large grey, ductile and alloyed iron and steel castings for a
range of applications including power generation, bearing
housings, steelworks, construction and compressors.
PFP ELECTRICAL PRODUCTS LTD
Fortnum Close, Mackadown Lane
Kitts Green, Birmingham B33 0LB
Tel: 0121 783 7161   Fax: 0121 783 5717
Products associated with cable management. Lighting and
switchgear associated with petrochemicals and construction
applications.
FRED DUNCOMBE LTD
Progress Drive
Cannock, WS11 0JE
Tel: 01543 578661   Fax: 01543 570050
Emergency exit equipment and traditional architectural
hardware directed mainly at the DIY and construction markets.
Foundries
Grey Iron
Malleable Iron
Ductile Iron
Austempered Ductile Iron
Ni Hard
Ni Resist
Stainless Steel
Carbon Steel
Alloy Steel
Alloyed Irons
Walsall Foundry
Bloxwich Foundry
Ductile Castings Ltd
Preferred supplier
of castings in: Chamberlin & Hill plc
Chuckery Foundry, Walsall, West Midlands WS1 2DU
Tel: 01922 721411   Fax: 01922 638370
website: www.chamberlin.co.uk
email: plc@chamberlin.co.uk