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Annual Report and Accounts  
for the year ended 31 March 2011
Stock code: CMH
Annual Report and Accounts for the year ended 31 March 2011 Chamberlin plc
Chuckery Road, Walsall, West Midlands, WS1 2DU
Tel: 01922 707100 Fax: 01922 638370
website: www.chamberlin.co.uk
email: plc@chamberlin.co.uk
Difficult things done well 20453-04  14/06/2011 Proof 6 20453-04  14/06/2011 Proof 6
Small complex grey iron castings, principally for the  
automotive sector and hydraulic applications.
Emergency exit equipment and traditional architectural  
hardware directed mainly at the DIY and construction  
markets.
Products associated with cable management. Lighting  
and switchgear associated with petrochemicals and  
construction applications.
Large grey, ductile and alloyed iron castings for a range of applications 
including power generation, bearing housings, steelworks, construction 
and compressors.
CHAMBERLIN & HILL CASTINGS LTD
Chuckery Road
Walsall, WS1 2DU
Tel: 01922 721411
Fax: 01922 614610
Bonchurch Street
Leicester, LE3 5EP
Tel: 0116 2992000
Fax: 0116 2998844
www.chcastings.co.uk
EXIDOR LTD
Progress Drive
Cannock, WS11 0JE
Tel: 01543 460030
Fax: 01543 573534
www.fredduncombe.co.uk
PETREL LTD
22 Fortnum Close
Kitts Green
Birmingham, B33 0LB
Tel: 0121 783 7161
Fax: 0121 783 5717
www.petrel-ex.co.uk
RUSSELL DUCTILE CASTINGS LTD
Trent Foundry
Dawes Lane
Scunthorpe, DN15 6UW
Tel: 01724 862152
Fax: 01724 280461
www.russellcastings.co.uk
The Board believes that success in the foundry and engineering sector is achieved  
by businesses that operate in the most demanding area of their technology and provide 
an outstanding service to their customers – difficult things done well. Our existing 
activities meet these criteria and we will continue to invest in them and to seek 
acquisition opportunities that fit this model. 01
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Contents
Introduction
Highlights  02–03
Chairman’s Statement  04–05
At a Glance 06–09
Performance
Chief Executive’s Review  12–15
Finance Director’s Review  16–17
Governance
Board of directors 20
Report of the Directors  21–26
Corporate Governance  27–29
Directors’ Remuneration Report  30–33
Independent Auditors’ Report  34–35
Financial Statements
Consolidated Income Statement  38
Consolidated Statement of  
Comprehensive Income  39
Consolidated Balance Sheet  40
Parent Company Balance Sheet  41
Consolidated Cash Flow Statement  42
Parent Company Cash Flow Statement  43
Statement of Changes in Equity  44
Notes to the Accounts  45–74
Notice of Annual General Meeting  75–77
Shareholder Information  80
For more information on Chamberlin Group operations 
please visit our website at www.chamberlin.co.uk
Investment Themes
	 A leading operator in the UK – specialist skills and knowledge
	 Modernisation programme has improved processes
	 Downturn successfully navigated – recovery firmly established
	 Growth linked to overseas engineering economy – 70% of product is 
ultimately exported
	 Further cyclical recovery to come – and new sales opportunities identified
	 Dividend payments recommended – supported by good cash generation
	 Twin track growth strategy – acquisitions to augment organic development 02
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Highlights
HALF YEARLY TURNOVER
H2 11
 21.5
H1 07
19.0
H1 08
19.6
H2 07
20.2
H1 09
23.5
H2 08
20.4
H2 09
16.4
H1 10
14.2
H2 10
14.2
H1 11
18.3
£m
“The financial year to 31 March 2011 marked a turning point for Chamberlin, 
with the Company returning to profit and recommencing the payment of 
dividends. Demand recovered throughout the year and the final quarter saw 
volumes at the Group’s Walsall and Scunthorpe foundries match or exceed 
pre-recession levels. Production at Chamberlin’s third foundry at Leicester 
was at 85% of pre-recession levels but volumes are continuing to build.
Chamberlin is well positioned for growth, helped by the modernisation 
and investment programme completed prior to recession and we expect 
the Group to make progress over the financial year. With demand for our 
products linked to global engineering activity, we see powerful long term 
trends favouring our business.”
Tom Brown
Chairman
HALF YEARLY TRADING PROFIT
£000
* Underlying items are stated before Non-Underlying items which represent business reorganisation costs, goodwill impairment costs, and net financing costs on pension 
obligations and share based payment costs. In prior periods Non-Underlying items also included the movement in unrealised mark-to-market foreign currency gains and losses 
on monetary assets and liabilities and forward foreign currency contracts, net of realised losses on surplus foreign exchange contracts.
682
521
619
611
905
704
445
635
288
222
H2 11 H1 07 H1 08 H2 07 H1 09 H2 08
H2 09 H1 10 H2 10
H1 11 03
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Key Points
	 Group returns to full year profitability and dividends restored
 Revenues increased by 40% to £39.801m (2010: £28.453m) — 
driven by continuing recovery across core business
 Underlying* operating profit of £0.904m  
(2010: loss of £0.895m) — H2 profit £0.682m versus H1 profit 
of £0.222m, a 306% improvement  
 Statutory operating profit of £0.508m  
(2010: loss of £1.049m)
 Underlying* profit before tax of £0.804m  
(2010: loss before tax of £1.028m)
 Statutory profit before tax of £0.333m  
(2010: loss before tax of £1.421m)
 Cash generated from operations increased to £1.791m  
(2010: £0.502m)
 Net debt reduced to £2.88m (2010: £3.45m) — lowest level  
since March 2008
 Underlying* earnings  per share of 6.7p (2010: loss per share  
of 12.8p)
 Statutory earnings per share of 1.3p (2010: loss of 16.4p)
 Restoration of dividend payments, with proposed final 
dividend of 1.0p (2010: nil)
 Net assets of £7.8m at 31 March 2011 (2010: £7.9m)
 Foundry activities saw continuing recovery — light castings at 
100% of pre-recession levels and heavy castings above  
pre-recession levels in quarter 4
 February 2011, addition of assets and intellectual property of 
Jebron Ltd, UK engineering business.  Expected to add over 
£1m of profitable sales annually
 Board expects continuing growth in new financial year
Our Products in Action
Chamberlin supply critical turbocharger 
components to the automotive sector. This is an 
emissions legislation driven market with high 
growth prospects.
The oil and gas industry as well as other sectors 
involving hazardous environments is a key 
market for the Group.
Breadth of Market
The Group supplies a very broad 
range of sectors within the overall 
engineering economy. Our customer 
base is predominantly blue-chip 
engineering groups operating across 
the world. Some examples of this 
diversity include: 
The Group supply a wide variety of components 
into the construction equipment and other  
off-road vehicle markets.
See case studies on page 8 04
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Chairman’ s Statement
At the half year stage, we were pleased to announce that 
Chamberlin had returned to profitability. We expected 
revenues and profits in the second half of the financial 
year to continue to build and this was the case, with 
operating profit in the second half at £682,000 against 
£222,000 in the first half, a 305% increase. For the year as a 
whole the Group delivered an underlying profit before tax 
of £804,000 (2010: underlying loss of £1,028,000). This is 
slightly ahead of market forecasts, which were upgraded in 
November 2010, and represents a turnaround of over 
£1.8m over the prior year.
Results
Demand recovered throughout the year, with revenues for the year ended 
31 March 2011 rising to £39.8m (2010: £28.5m), a 40% improvement. 
Increased activity in our established customer base underpinned this 
recovery but I am encouraged to note that new business made a strong 
contribution, especially in the second half of the year, leaving Chamberlin 
well placed for the current financial year and beyond.
The rise in gross profit margins of 3.0 percentage points to 18.7% from 
15.7% is noteworthy and the Group delivered an underlying operating 
profit of £904,000 against an operating loss of £895,000 in the prior year. 
The underlying profit before tax was £804,000 (2010: underlying loss 
before tax of £1,028,000) and underlying earnings per share were 6.7p 
(2010: underlying loss per share of 12.8p).
The statutory results show operating profit of £508,000 (2010: loss of 
£1,049,000), statutory profit before tax of £333,000 (2010: loss before tax 
of £1,421,000) and statutory earnings per share of 1.3p (2010: loss per 
share of 16.4p).
The business continues to remain very cash generative. Chamberlin 
generated net cash from operations throughout the downturn and 
growing profitability in the second half year has accentuated this trend. 
Cash from operations was £1.41m in the second half, bringing the total 
cash generated from operations for the year to £1.79m (2010: £0.50m). As 
a result, during the year we reduced net borrowing by over £0.5m and at 
31 March 2011, net debt stood at £2.88m (2010: £3.45m) the lowest 
point since March 2008. We remain well financed, with an overdraft 
facility of £5.0m with HSBC, which has recently been renewed with a 
reduced interest rate.
Dividend
In view of the Group’s return to profitability and our belief that we will 
see Chamberlin’s performance continue to strengthen, I am very pleased 
to announce that the Board proposes to return to the payment of 
dividends. The Directors are recommending the payment of a final 
dividend of 1.0p per share, to be paid on 14 July 2011 to shareholders on 
the register at 1 July 2011.
In the future our dividend policy will be progressive and we will seek to 
pay regular dividends at a level covered adequately by earnings.
“We expect Chamberlin to continue to make good progress over the new financial 
year and, with demand for our products linked to global engineering activity, we see 
powerful long term trends favouring our business. We view prospects for the year 
very positively.”
Chamberlin produce performance critical components for the off-road vehicle sector 05
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Business performance and growth strategy
It was very pleasing to see business volumes in our three foundries 
recover strongly over the course of the year. We closed the year with our 
light castings foundry at Walsall operating at 100% of pre-recession 
volumes and our heavy castings foundry at Scunthorpe exceeding 
pre-recession levels. Our medium castings operation at Leicester was at 
85% of pre-recession production but is continuing to recover.
Looking forward, we see very good growth opportunities across all our 
foundries and our engineering operations, Exidor and Petrel, which 
contribute about 20% of Group sales are also well positioned.
With return to growth firmly established and Chamberlin in good 
operational shape we are, as I noted in my previous statement, again 
looking at the expansion of the Group. In February 2011 we acquired 
certain assets from the administrators of Jebron Ltd, a door closer 
manufacturer. This is an excellent fit with Exidor, extending the product 
offering, and it should add over £1.0m of profitable sales on an 
annualised basis.
As we look for acquisitions, we are considering businesses which meet 
our theme ‘difficult things done well’ and which will complement our 
existing operations. Potential targets include foundry operations which 
add to the capabilities already in the Group.
The Board
I have been very pleased to lead the Board as Chairman since 2004, 
after joining as a Non-Executive Director in 2003. Having overseen 
Chamberlin through both a modernisation programme and a severe 
recession, and now with the Company restored to profitability and 
dividend payments and entering a new phase of development, I have 
decided that it is an appropriate time for me to consider retiring from the 
Board. I intend to do this in due course once the Board’s succession 
planning has been finalised.
Outlook
The financial year to the end of March 2011 marked a turning point for 
Chamberlin, with the Company returning to profit and recommencing 
the payment of dividends. Chamberlin has come through recession very 
robustly, helped by the modernisation and investment programme 
completed prior to recession. We have continued to seek process 
improvements during the downturn and also maintained our skill base 
and output capability. These factors stand us in good stead as volume 
recovery continues. In addition, Chamberlin’s very high level of technical 
skills means that we are very well positioned in our target markets.
We expect Chamberlin to continue to make good progress over the new 
financial year and, with demand for our products linked to global 
engineering activity, we see powerful long term trends favouring our 
business. We view prospects for the year very positively.
Tom Brown
Chairman
23 May 2011
Turbocharger components is a rapidly growing sector that currently represent 21% of Group sales 06
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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At a Glance
Our Business
Retail
Exidor
Based in Cannock, Staffordshire, Exidor is a long established and leading supplier of 
specialist emergency exit hardware, i.e. the crash bars fitted to fire escape doors 
that allow rapid opening in the event of an emergency. Its EXIDOR emergency exit 
product range is a leader in the exit and security door equipment market with an 
expanding range of equipment to satisfy a variety of access applications. Exidor has 
a strong management team, good distribution channels and an excellent 
reputation in its market.
In February 2011 the intellectual property and certain assets of Jebron Ltd were 
acquired from the administrators. This has added a complementary product range 
and its integration into our Cannock site is proceeding smoothly to timeframe  
and budget. It is expected that this will add profitable sales of over £1m on an 
annualised basis.
Petrel
Petrel Ltd, based near the National Exhibition Centre to the East of Birmingham, 
concentrates on the development and production of certified lighting and 
control equipment for use in hazardous and explosive environments. This  
is a highly regulated market servicing a variety of sectors including the 
petrochemical and distilling industries.
With its strong presence in a highly regulated market, Petrel has seen little 
reduction in demand during the recession.
Petrel has recently strengthened its UK sales team and added an experienced agent 
to cover a territory in Germany, and this should help to stimulate ongoing growth.
Engineering Business
Revenue by business
51%  Exidor
49%  Petrel
The Engineering Division currently 
comprises Exidor Ltd and Petrel Ltd.
Product Areas
37.9%  Light Castings
24.2% Medium Castings
21.5%  Heavy Castings
8.3%  Hazardous Environments
8.1% Security/Safety
Chamberlin operates across 5 locations in the UK. The foundry Division specialises 
in technically demanding castings in complex shapes and in specialist metallurgies. 
Work is allocated across its three foundry sites based on size and metallurgy as 
follows:
a. Light castings based in Walsall produces castings up to 5kg in grey iron;
b. Medium castings based in Leicester produce 5kg to 100kg castings in a wide 
variety of iron alloys;
c. Heavy castings based in Scunthorpe make 100kg and 6 tonnes castings again 
in a wide variety of iron grades.
The two engineering businesses supply to regulated markets operating from two 
sites in the West Midlands. 07
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Foundry Business
Chamberlin & Hill Castings (“CHC”)
This subsidiary incorporates our Walsall and Leicester foundries with combined 
financial and sales functions.  
Walsall specialises in small castings with complex internal passages and has built 
a strong position in automotive turbochargers.
Our Leicester foundry specialises in producing mid-size iron castings with complex 
metallurgy designed to give high strength, corrosion or wear resistance or low 
temperature capability and its expertise is relevant to many sectors.
Russell Ductile Castings (“RDC”)
RDC, which is based in Scunthorpe and specialises in heavy castings for a wide 
variety of industries. The majority of RDC customers are OEMs and the site is 
benefiting from the global demand for engineered products.
	 z In 2010 we combined the management of our Leicester and Walsall 
operations and began the merger of their respective support functions.  
This process was completed in 2011 and is delivering a significant reduction 
in overheads.
	 z During the second half we commenced volume production of the first 
castings for a major new customer to develop castings for a family of new 
turbochargers and anticipate that this will generate annual sales of 
approximately €6m once all castings are in production.
	 z RDC announced a major contract win, worth £1.4m, with a UK 
manufacturer to supply castings for specialist compressors which will be 
exported to a natural gas installation in Asia. This contract is proceeding as 
expected and will be completed during the current financial year. 
Revenue by business
Chamberlin & Hill Castings 
44%   Light castings
28%   Medium castings 
Russell Ductile Castings
28%   Heavy castings
The Foundries Division currently comprises 
Chamberlin & Hill Castings Ltd and Russell 
Ductile Castings Ltd. 08
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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“Chamberlin’s strategic focus on ‘difficult things done well’ and its diverse range of 
markets has helped it to occupy a favourable market position and presents a wide 
range of opportunities for future growth.”
The following case studies demonstrate Chamberlin’s ability to recognise opportunities and solve client problems with 
innovative solutions. The company’s mix of resources coupled with technical know-how allows it to provide a full 
service that is difficult for competitors to emulate. 
Case Study
Taking casting technology  
into new markets
Market Opportunity
Casting is the most cost 
effective method for 
forming complex metal 
shapes, and can be used 
to produce components 
previously made by 
forging or fabrication. A 
stairlift manufacturer 
approached Chamberlin 
to assist them in 
developing a cast solution 
to a key component of 
their core product.
Why Chamberlin?
Chamberlin has expertise in producing highly complex shapes 
with thin wall thicknesses for technically demanding 
applications. There are only a small number of foundries 
globally that have the technical capability to take such a 
complex component from design right through to production.
What difference has this made?
Chamberlin’s engineers worked with our client’s team to 
develop a very complex casting in a special grade of iron to 
replace an existing fabricated component.  
The resultant product is both stronger  
and more cost effective than the  
original fabrication. 
Case Study
Turbochargers for  
Petrol Engines
Market opportunity
In 2010 some 10% of petrol engines  
were turbocharged however, by 2015  
approximately 80-90% of car petrol engines are expected to be 
turbocharged causing the existing market to grow by over 50%.
Why Chamberlin?
We are one of only four specialist foundries in Europe with the 
technical capability to develop and supply these castings.
What difference has this made?
This product has become a high growth area that currently 
represents 21% of Group sales.
Chamberlin have supplied castings into the diesel turbocharger 
market for over 10 years. Recent EU emissions legislation has 
resulted in the car makers needing to turbo charge petrol 
engines in order to meet the new standards. Chamberlin has 
been working with a large turbocharger manufacturer for the 
last two years to take a critical part of the turbo from design to 
full production. This work is ongoing and further products will 
go into production over the next 18 months.
At a Glance
Difficult Things Done Well 09
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Global sales
Engineering activity outside of the UK 
is a key driver of demand:
Approximately 70% of output is 
ultimately exported. Direct exports 
account for 35% of output with our 
customers located in Europe, America 
and Asia.  Indirect exports, where 
Chamberlin businesses supply products 
to UK-based equipment manufacturers 
whose products are then shipped 
worldwide, account for approximately 
35% of our output. Against this, only 
some 30% of sales are driven by demand 
from the UK economy. Global demand 
for engineered products is strong and 
our UK customers, which include 
companies such as Siemens, Howden, 
CAT, JCB and Tata Steel, are typically 
leaders in their sectors.  
UK Manufacturing
Worldwide Markets
2
3
4
5
6
1
HEaD OFFICE 
1 Walsall
FOunDRIES
2 Chamberlin & Hill 
Castings, Walsall
3 Chamberlin & Hill 
Castings, Leicester
4 Russell Ductile Castings, 
Scunthorpe
EnGInEERInG 
5 Exidor, Cannock
6 Petrel, Birmingham
35%  Direct
35% Indirect
30%  UK
Exports
Group Markets
21.1%  Passenger Car
13.5%  Commercial Diesel 
9.0%  Hydraulics 
8.4%  Construction Equipment 
8.3%  Hazardous Environments 
8.1%  Security/Safety 
5.1%  Mining/Quarrying/Minerals 
3.6%  Transportation Off Road 
2.5%  Process 
2.3%  Power Generation 
2.2%  Steel Industry 
2.1%  Oil & Gas 
1.5%  Rail 
12.4%  Other 
Our Markets 10
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH Performance
Chief Executive’s Review 12–15
Finance Director’s Review 16–17
11
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
Introduction Governance Financial Statements Performance 12
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Chief Executive’ s Review
We are pleased with Chamberlin’s trading results and  
our recommendation to recommence the payment of 
dividends signals our confidence in the business and its 
growth prospects.
Markets
Recovery in demand has gathered pace during the past year and 
Chamberlin, having returned to profit in the first half of the year, 
delivered improving profitability in the second half. We ended the year 
with overall activity around pre-recession levels and with continuing 
growth opportunities in our key markets.
The recession and subsequent recovery have highlighted features of our 
business and markets that are worth examining as we look to future 
growth and I discuss below some of the more important elements.
Diverse markets
Chamberlin serves a diverse range of markets including automotive, 
hydraulics, mining, hazardous environments, power generation and 
construction equipment. This diversity has benefited us during recession, 
reducing our exposure to any single market, and continues to do so by 
presenting a wide range of opportunities for future growth.
In recent years we have focused our automotive activity on turbocharger 
castings, a high growth area that currently represents 21% of Group sales. 
As one of only four specialist foundries in Europe with the technical 
capability of supplying these castings for turbochargers we are in an 
excellent position to benefit from the increasing trend for car 
manufacturers to apply turbochargers to petrol engines. This trend is 
being driven by the need to comply with emissions regulations and to 
provide an indication of its scale, in 2010 some 10% of petrol engines 
were turbocharged however, by 2015 approximately 80-90% of car petrol 
engines are expected to be turbocharged causing the existing market to 
grow by over 50%.
Direct and indirect export
It is a notable feature of the business that c.70% of output is ultimately 
exported. Direct exports account for 35% of output with our customers 
located in Europe, America and Asia. Indirect exports, where Chamberlin 
businesses supply products to UK-based equipment manufacturers 
whose products are then shipped worldwide, account for approximately 
35% of our output. Against this, only some 30% of sales are driven by 
demand from the UK economy. Global demand for engineered products 
is strong and our UK customers, which include companies such as 
Siemens, Howden, CAT, JCB and Tata Steel, are typically leaders in  
their sectors.
“The decade before the recession was marked by manufacturers in America and 
Europe transferring production to lower labour cost countries in the East ....... 
we are now seeing  reversals to the model and a number of major manufacturers 
returning to European sourcing.”
Specialist lighting for hazardous and explosive environments 13
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Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Extended supply chains
The decade before the recession was marked by manufacturers in America 
and Europe transferring production to lower labour cost countries in the 
East in an attempt to reduce cost. In the engineering sector this transfer 
started with simple parts but came to include more complex items, and 
the supply chains typically involve fixed volume commitments, several 
months for transport by sea and stock buffers at the customer. During the 
recession many businesses suffered severe problems because of the length 
and inflexibility of their supply chain and continuing difficulties from 
unreliable product quality. As a result we are now seeing reversals to the 
model and a number of major manufacturers are returning to European 
sourcing, with some formally announcing changed sourcing policies.
Engineering capability
Historically, original equipment manufacturers (“OEMs”) were vertically 
integrated, designing and assembling their products and making many of 
the component parts in-house. This model has changed over the years as 
OEMs, led by the automotive industry, have outsourced component 
manufacture to specialist suppliers while retaining their own core 
expertise. The recession appears to have accelerated this trend and in 
many industries OEMs are narrowing their focus even further, reducing 
their cost base by eliminating their own engineering expertise in 
component areas. Chamberlin already participates in the design of our 
customers’ products, and as more OEMs outsource engineering design  
to their supply base our technical strengths will become increasingly 
important. I also believe that there will be opportunities to expand into 
machining our castings, supply logistics and possibly sub-assembly so 
creating new revenue streams for the Group.
Operations
In a year of recovery, we have focused on increasing volumes while 
maintaining the tight cost and cash controls that were central to steering 
a successful course through the recession. Having retained our production 
capacity, backed by a skilled staff base, we were well placed to handle the 
upturn in demand and all our operating sites returned to full-time 
working during the year.
All operations achieved process improvements during the recession and 
these have been maintained during recovery. The investment programme 
carried out by management between 2007–2009 means that none of our 
sites currently requires further major investment and I look forward to 
significant organic growth with capital spending now running at a level 
approximately equal to our depreciation cost.
Train and railway infrastructure components 14
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Foundries
Chamberlin & Hill Castings (“CHC”)
This subsidiary incorporates our Walsall and Leicester foundries with 
combined financial and sales functions. Both foundries have recovered 
well and in the fourth quarter Walsall operated at 100% of pre-recession 
volumes while Leicester was at approximately 85%.
Walsall specialises in small castings with complex internal passages and 
has built a strong position in automotive turbochargers, and over the last 
two years has worked with a major new customer to develop castings for 
a family of new turbochargers. I am pleased to report that during the 
second half we commenced volume production of the first castings for 
this contract, and that the development programme for the remaining 
parts is on schedule and will be completed over the coming 18 months. 
We anticipate that this will generate annual sales of approximately €6m 
once all castings are in production. CHC continues to build on its 
longstanding relationship with Borg Warner and we believe that in future 
there will be opportunities to add further value by machining the castings 
that we produce.
Our Leicester foundry experienced a slow but sustained recovery over the 
year as construction equipment manufacturers, which make up its largest 
market, have seen volumes recover. The site specialises in producing 
mid-size iron castings with complex metallurgy designed to give high 
strength, corrosion or wear resistance, or low temperature capability and 
its expertise is relevant to many sectors.
In 2010 we combined the management of our Leicester and Walsall 
operations and began the merger of their respective support functions. 
This process was completed in 2011 and is delivering a significant 
reduction in overheads. At Leicester, the increased focus on operations is 
delivering efficiency improvements and the combined sales approach is 
identifying new opportunities. I am confident that Leicester will see 
sustained profitable growth in the current financial year and beyond.
Russell Ductile Castings (“RDC”)
RDC, which is based in Scunthorpe and specialises in heavy castings for a 
wide variety of industries, has seen a robust recovery in demand which 
started in the first half year. The site suffered significant disruption from 
the freezing weather in the third quarter of the financial year but 
recovered well in the final quarter when we saw demand exceed 
pre-recession levels.
The majority of RDC customers are OEMs and the site is benefiting  
from the global demand for engineered products. In October 2010, we 
announced a major contract win, worth £1.4m, with a UK manufacturer 
to supply castings for specialist compressors which will be exported to a 
natural gas installation in Asia. This contract is proceeding as expected 
and will be completed during the current financial year. We continue to 
win other OEM contracts and I am pleased to report that RDC customers 
have recently extended the timescale covered by their future orders. This 
is normally an indication that customers are expecting strong demand 
and are therefore reserving future capacity. During the downturn the 
casting operations were re-configured to create capacity and improve 
efficiency, and significant growth can now be accommodated at our 
Scunthorpe site.
Chief Executive’ s Review continued
Wear parts to the minerals sector 15
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Engineering
Exidor
Exidor specialises in emergency exit hardware, i.e. the crash bars fitted to 
fire escape doors that allow rapid opening in the event of an emergency. 
These crash bars have both a safety and security function, as they are 
required to provide protection against break-ins during normal 
conditions.
Exidor has a strong management team, good distribution channels and an 
excellent reputation in its market. Our acquisition of the intellectual 
property and certain assets of Jebron Ltd, from the administrators, in 
February 2011 has added a complementary product range and its 
integration into our Cannock site is proceeding smoothly to timeframe 
and budget. We expect this will add profitable sales of over £1m on an 
annualised basis.
Petrel
Petrel, which produces lighting and controls for hazardous environments, 
serves a market which is very highly regulated and has seen little 
reduction in demand during the recession. We have recently strengthened 
our UK sales team and added an experienced agent to cover a territory in 
Germany, and this should help to stimulate ongoing growth.
a cquisition strategy
We continue to pursue acquisitions opportunities that fit our criteria of 
‘difficult things done well’. We have reviewed our target sectors in light of 
the market developments discussed above and in general our acquisition 
criteria remain unchanged. However, we believe that these developments 
have made foundry investments more attractive and have therefore 
increased our research in the sector.
Outlook
Chamberlin has been tested by recession and emerged strongly. The 
Group is continuing to see volume recovery and we believe that prospects 
for growth in the current financial year are very encouraging.
Tim Hair
Chief Executive
23 May 2011
Heavy weight castings for the marine sector 16
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Finance Director’ s Review
Overview
Sales increased during the year by 40% to £39.8m (2010: 
£28.5m) as the business both recovered from recession 
and won new work. £1.5m of the increase in sales was as a 
consequence of increases in raw material surcharges, 
which pass onto customers certain rises in input costs at 
zero margin. Gross profit margin improved to 18.7%, from 
15.7% in the previous year. Surcharges have the effect of 
diluting margins and excluding this impact, the gross 
profit improvement would have been 3.7% compared to 
the 3.0% reported.
The Group returned to profit with an underlying operating result of 
£904,000, which equated to a £1,799,000 turnaround on the prior year 
(2010: £895,000 operating loss). Financing costs reduced in the year, in 
line with borrowings, resulting in underlying profit before tax of £804,000 
(2010: £1,028,000 loss). Underlying earnings per share improved to 6.7p 
(2010: 12.8p loss).
The statutory results also improved significantly over the previous year 
with statutory operating profit of £508,000 (2010: operating loss of 
£1,049,000); statutory profit before tax of £333,000 (2010: loss before tax 
of £1,421,000); and statutory earnings per share of 1.3p (2010: loss per 
share of 16.4p).
Tax
The Group’s underlying tax charge for the year was £305,000 (2010: 
£77,000 credit). The underlying effective rate of 38% (2010: 7%) is 
adversely affected by a deferred tax change relating to the reduction in 
the rate of corporation tax. The Group has been able to utilise brought 
forward tax losses and as a consequence no tax will be payable for the 
year. The charge in the income statement represents deferred tax only. 
The statutory tax charge was £235,000 (2010: £201,000 credit). The 
effective rate of 70% is additionally impacted by goodwill impairment 
costs which are not tax allowable.
Foreign exchange
In order to protect against future exchange rate movements the Group 
enters into forward currency contracts covering 80% of its estimated 
Euro denominated sales for the coming year. On 1 April 2010, the Group 
adopted hedge accounting in relation to these foreign currency 
contracts, as explained in detail in Note 2 to the Financial Statements. 
During the period the movement in fair value of £250,000 in respect of 
effective hedges was recognised in equity.
“Cash generated from operations was strong at £1,791,000 (2010: £502,000), 
reflecting the culture of robust cash management throughout the business. The 
Group has generated positive operating cashflow for each half year throughout the 
recession and the consequent recovery phase.”
Security and safety products supplied to the construction sector 17
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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a sset acquisition
On 4 February 2011, the Group acquired certain fixed assets and 
inventory from the administrator of Jebron Ltd, a manufacturer of door 
controllers, for £162,000. Since that date, new staff have been recruited 
and production of door controllers started during March 2011. It is 
intended that this activity will be fully integrated into our Exidor business 
and consequently manufacture of these products will be transferred to 
our Cannock site during the coming months.
Reorganisation and impairment costs
The cost of bringing the Jebron assets back into production after a period 
of Administration and integrating the equipment into our Exidor facility, 
at Cannock, is expected to total £121,000, and has been charged as a 
non-underlying cost in the income statement. In order to create space for 
the Jebron assets at Cannock, the Group has decided to withdraw from 
door handle production. As a consequence, goodwill of £202,000 in 
relation to this small element of the Exidor business has been fully 
impaired.
Cash generation and financing
Cash generated from operations was strong at £1,791,000 (2010: £502,000), 
reflecting the culture of robust cash management throughout the business. 
The Group has generated positive operating cashflow for each half year 
throughout the recession and the consequent recovery phase. With year 
on year sales increasing by £11.0m, limiting working capital increases to 
£79,000 is a testament to the Group’s cash driven ethos.
Capital expenditure restrictions introduced during the recession were lifted 
during the second half, with spend for the year increasing to £1,217,000 
(2010: £610,000). This was marginally below depreciation and amortisation, 
and included £160,000 for the assets acquired from Jebron Ltd.
Group borrowings reduced during the year by £568,000, to £2,881,000 
(2010: £3,449,000). The Group is funded through a £5.0m overdraft 
facility, which is renewable annually and is not subject to financial 
covenants.
Pension
The Group’s defined benefit pension scheme was closed to future accrual 
in 2007, and now has 175 deferred and retired members. The triennial 
valuation as at 1 April 2010 and the associated recovery plan have now 
been agreed with the trustees. As a consequence contributions will 
increase by £50,000 per year to £308,000 per year in 2011/12 and by 3% 
per year thereafter. Based on current assumptions this would eliminate 
the deficit in approximately 10 years.
The IAS 19 deficit at 31 March 2011 was £2.2m (2010: £2.4m). The 
reduction principally reflects the change from RPI to CPI in line with the 
Government’s change in the standard inflation measure.
Mark Bache
Finance Director
23 May 2011
Commercial vehicle components including key turbochargers 18
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH Governance
Board of Directors 20
Report of the Directors 21–26
Corporate Governance 27–29
Directors’ Remuneration Report 30–33
Independent Auditors’ Report 34–35
19
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
Introduction Performance Governance Financial Statements 20
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Board of Directors
Executive Directors
Non-Executive Directors
Tim Hair
Chief Executive
Aged 51, Tim joined the Company in June 2006 
and was appointed as Chief Executive in July 
2006. Tim was previously Managing Director  
of Sterling Hydraulics Limited and his career 
includes senior positions in a range of advanced 
engineering businesses.
Mark Bache
Finance Director
Aged 47, Mark joined the Company in 
November 2006 and was appointed Finance 
Director in December 2006. He was previously 
Finance Director of Pel Group Ltd and has held 
senior financial positions in a number of 
manufacturing groups since qualifying as a 
Chartered Accountant with PWC in 1988.
Tom Brown
n on-Executive Chairman
Aged 62, Tom joined the Board in 2003 and  
was appointed independent Non-Executive 
Chairman in March 2004. He is also a 
Non-Executive Director of Northgate plc and a 
Director of a number of private companies. He 
was previously Group Chief Executive of United 
Industries plc and before that Group Managing 
Director of Fenner plc.
Keith Jackson
n on-Executive Director
Aged 62, Keith joined the Board in 2005. He was 
previously Finance Director of Tarmac Group 
Ltd, and was Finance Director of Cape plc 
between 1989 and 1996. He is a director of 
EuroChem, as well as being Chairman of a 
number of pension funds. Keith is Senior 
Independent Director and Chairman of the 
Audit Committee.
alan Howarth
n on-Executive Director
Aged 65, Alan was appointed as a Director in 
January 2007. Alan was previously a partner in 
Ernst & Young. He is Chairman of Cerillion 
Technologies Ltd, CRF Inc, and has further 
non-executive interests in a range of private 
companies. Alan is Chairman of the 
Remuneration Committee. 21
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Report of the Directors
The Directors present their Annual Report and Accounts for the year ended 31 March 2011.
Principal activities
The principal activities of the Group are the production and sale of iron castings in a wide variety of sizes and metal grades, and the manufacture and 
sale of light engineering products, predominantly into safety and security markets.
The Company is registered in England and its registration number is 76928.
Review of the business
A comprehensive analysis of the development and performance of the Company during the year, including its future prospects, is included in the 
Chairman’s Statement on pages 4 to 5, the Chief Executive’s Review on pages 12 to 15 and the Finance Director’s Review on pages 16 to 17.
(a) Key Performance Indicators
 Key Performance Indicators (“KPIs”) used by the Group in monitoring its performance and that of its underlying businesses are set out below:
  Year to Year to 
  31 March 31 March 
  2011  2010
Return on sales Foundries 4.0% (2.2)%
 Engineering 4.7% 3.0%
 Group 2.1% (3.2)%
Return on net assets Foundries 13.3% (5.5)%
 Engineering 16.1% 6.3%
 Group 11.7% (11.8)%
Sales per employee Foundries 107.8 76.0
(£000) Engineering 67.8 81.4
 Group 96.1 75.5
 Calculations are based on numbers disclosed in the segmental analysis in note 3 to the accounts and are shown before exceptional items as detailed 
in note 12 to the accounts. The Group percentages are different as they incorporate shared costs.
 The above KPIs are defined as follows:
 Return on sales  The ratio of the segment’s trading profit to the segment’s sales. The trading profit is defined in the segmental 
analysis in note 3.
 Return on net assets The ratio of the segment’s trading profit to the segment’s net assets (as analysed in note 3).
 Sales per employee The ratio of the segment’s sales to the segment’s average number of employees.
(b) Employees
 Staff numbers and associated costs are shown in note 5 to the accounts. The segmental split of the average number of employees is as follows:
  Year to Year to 
  31 March 31 March 
  2011  2010
Foundries  307 295
Engineering  99 74
Head office*  8 8
Group  414 377
 * Includes 3 non-executive Directors.
  22
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Annual Report and Accounts for the year ended 31 March 2011
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Report of the Directors continued
 The Group’s employment policy includes a commitment to the principles of equal opportunity for all, and specifically prohibits discrimination of 
every type. Our policy is always to ensure that all persons are treated fairly irrespective of their colour, race, sex, sexual orientation, age or youth, 
religion, political beliefs, trade union membership or non-membership, marital and physical or mental status or any other factors including 
pregnancy and maternity.
 In particular, the Group gives full consideration to applications for employment from disabled persons where the requirements of the job can be 
adequately fulfilled by a disabled person. We endeavour to provide those who have physical or mental disabilities with specific assistance, and 
arrangements are made to enable them to work for us wherever and whenever this is reasonably practical. We expect all employees to comply in 
every respect with the Group’s employment policies at all times.
 The Group has arrangements in place for the involvement of all employees in the activities of the business, including management/employee 
briefings, dialogue with trade union representatives and health and safety meetings. A Safety Policy is in place throughout the Group and all 
employees are required to be aware of their responsibilities under the Health and Safety at Work Act. A copy of the policy and all relevant Codes of 
Practice are available at the workplace. It is the policy of the Group to recognise that the training of employees is important to the efficiency of the 
business and each employee’s welfare and safety. Promotion is encouraged within the organisation and it is Group policy to promote from within 
wherever this is appropriate.
(c) Environment
 The Board recognises that our operations have an effect on the local, regional and global environment, and as a consequence of this, the Board is 
committed to continuous improvements in environmental performance and the prevention of pollution.
 Specifically the Group has and will:
	 z comply with the requirements of all relevant environmental legislation, meeting any set emission limits and standards laid down, and use best 
available techniques in order to control impacts on the environment;
	 z maintain and develop environmental management policies and practices to continually monitor and progress the minimisation of the effects of 
the business on the environment. Environmental management is considered to be a key part of the business strategy at all levels within the 
Group;
	 z actively encourage the minimisation of waste from all aspects of the business and promote the benefits of recycling and reuse;
	 z as part of the Target 2010 climate change levy agreement, aim to meet the requirements to reduce energy use and emissions of carbon dioxide by 
increasing energy efficiency through all parts of the Group and to seek new opportunities of improving energy efficiency as part of the overall 
improvement of the business;
	 z consider environmental factors in respect of the growth of the business, seeking as far as is practical to reduce harmful environmental impacts 
and to integrate new developments into the local environment; and
	 z actively encourage the consideration of the environmental impact of all raw materials and services purchased by the business, and where 
practical to use the options with the least impact and to reduce the consumption of raw materials.
(d) Research and development
 The Group’s research and development activities in the year, as in previous years, consist primarily of devising methods for achieving the 
casting of complex shaped and/or multi-cored products in the foundry businesses and the design and development of new products in our 
engineering businesses, principally hazardous area lighting and emergency exit hardware products. The Board views such activities as key to the 
future prosperity of the business. Expenditure expensed through the income statement is shown in note 7 and expenditure capitalised in note 
14 to the accounts. 23
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Principal risks and uncertainties
Management throughout the Group uses a common model to identify and assess the impact of risks to their businesses. The Group’s risk management 
process is described further in the corporate governance report on pages 27 to 29. The more significant risks and uncertainties faced by the Group are 
set out below:
	 z Approximately 20% of the Group’s income is derived in Euros. In order to reduce the Group’s exposure to currency fluctuations the Group sells Euros 
forward in order to provide an effective hedge, as described in note 25.
	 z The price of many raw materials is dependent upon movements in commodity prices, especially iron. In order to reduce its exposure to movements 
in raw material prices the Group negotiates, where appropriate, price surcharge arrangements into its customer contracts.
	 z In common with other industrial businesses the Group is subject to risks associated with the environment. The Group manages these risks by 
continual review of its processes to identify opportunities for improvement, whilst ensuring that the conditions of its site operating licences are met 
or exceeded at all times.
	 z The global economic recession has eased during the period and the Group has been exposed to additional risks associated with significant and rapid 
increases in demand. In order to mitigate this risk the Group maintains borrowing facilities which incorporate sufficient headroom to accommodate 
any working capital movements associated with such changes in demand. In addition the Group regularly monitors its forward order load and where 
practical takes action to adjust its cost base in line with demand.
	 z The Group’s approach to managing other financial risks is set out in note 25 to the financial statements.
Dividends
The Directors recommend the payment of a 1.0p final dividend. No interim dividend has been paid during the year (2010: total dividend nil).
Directors
Details of the Directors of the Company during the year and their interests in the shares of the Company are shown below. The interests of the Directors 
in share options are shown in the Directors’ Remuneration Report on pages 30 to 33.
Adam Vicary resigned from the Board on 17 May 2010 to pursue other career opportunities. All other Directors held office throughout the year.
At the Annual General Meeting to be held on 14 July 2011 (see the Notice of Annual General Meeting on pages 75 to 77), all of the Directors will retire 
and, being eligible, offer themselves for re-election.
No Director had a material interest during the year in any significant contract with the Company or with any subsidiary undertaking. The Group 
provides indemnities to the Directors in respect of liabilities or claims arising in the performance of their duties.
Directors’ shareholdings
Beneficial interests of the Directors in the shares of the Company, including those of their immediate families were:
 a t 31 March At 31 March 
 2011 2010
 number Number 
 of shares of shares
Tom Brown 35,000 20,000
Tim Hair 33,000 33,000
Mark Bache 15,000 5,000
Adam Vicary n/a 15,000
Keith Jackson 13,525 7,525
Alan Howarth 11,300 5,300
There have been no changes in the interests of the Directors set out above between 1 April 2011 and 24 May 2011. 24
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Report of the Directors continued
Special Business at the a nnual General Meeting
Directors’ authority to allot shares
As in previous years, approval will be sought for a special resolution to renew the authority given to the Directors to allot shares in the Company. 
Authority will be sought to allot shares in the Company up to an aggregate nominal amount of £619,805 (which represents approximately 33% of the 
issued share capital of the Company as at 24 May 2011). This limit is in line with the guidelines issued by the Association of British Insurers.
Authority will also be sought from shareholders to allow the Directors to issue new shares for cash to persons other than to existing members up to a 
maximum nominal amount of £92,971. This sum represents 371,883 ordinary shares of 25 pence each, being equivalent to 5% of the issued share capital 
of the Company at 24 May 2011.
Authority to purchase own shares
At the Annual General Meeting in 2010, the Board was given authority to purchase and cancel up to 743,700 of its own shares representing just under 
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, to allow the Company to purchase and cancel up to 743,700 of its own shares, again representing just under 10% of its issued share capital 
at 24 May 2011.
The authority is sought by way of a special resolution, details of which are also included at item 10 in the notice of meeting. 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.
Both authorities are to be for the period commencing on the date of passing of the resolution until the next Annual General Meeting. The proposed 
resolutions are set out as items 7 to 9 in the notice of meeting on pages 75 to 77.
Substantial shareholders
At 23 May 2011 the Company was aware of the following interests of 3% or more of the Company’s share capital, other than those of Directors:
 Number % of Issued 
 of shares  Share Capital
Rights and Issues Investment Trust PLC 1,000,000 13.45%
Henderson Global Investors 747,014 10.04%
Discretionary Unit Fund 500,000 6.72%
Schroder Institutional UK Smaller Companies Fund 477,178 6.42%
AXA Framlington Monthly Income Unit Trust 400,000 5.38%
Brewin Dolphin Securities 383,330 5.15%
Perfecta Assets Ltd 275,000 3.70%
Citi Quilter 223,800 3.01% 25
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable United Kingdom law and 
those International Financial Reporting Standards as adopted by the European Union.
Under company law the Directors must not approve the financial statements unless they are satisfied that they present fairly the financial position, 
financial performance and cashflows of the Company and Group for that period. In preparing the Company and Group financial statements, the 
Directors are required to:
	 z select suitable accounting policies in accordance with IAS 8: Accounting Policies Changes in Accounting Estimates and Errors, and then apply 
them consistently;
	 z present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
	 z provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of 
particular transactions, other events and conditions on the entity’s financial position and financial performance;
	 z state that the Company and Group has complied with IFRS, subject to any material departures disclosed and explained in the financial 
statements; and
	 z make judgements and estimates that are reasonable and prudent.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company and Group’s transactions 
and disclose with reasonable accuracy at any time the financial position of the Company and Group and enable them to ensure that the Company and 
Group financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for 
taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. 
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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 as set out in note 2 to the financial statements. For this reason, 
they continue to adopt the going concern basis in preparing the accounts.
Directors’ statement as to disclosure of information to a uditors
The Directors who were members of the Board at the time of approving the Directors’ report are listed on page 20. Having made enquiries of fellow 
Directors and of the Company’s Auditors, each of these Directors confirms that:
	 z to the best of each Director’s knowledge and belief, there is no information relevant to the preparation of their report of which the Company’s 
Auditors are unaware; and
	 z each Director has taken all the steps a Director might reasonably be expected to have taken to be aware of relevant audit information and to 
establish that the Company’s Auditors are aware of that information. 26
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Charitable and political donations
Donations to UK charitable organisations amount to £750 (2010: £750). There were no political donations in the year (2010: £nil).
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 a business relationship with a supplier, to ensure 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 2011 was 58 days (2010: 63 days) and that of the Company was 55 days (2010: 55 days).
a uditors
A resolution will be proposed to reappoint Ernst & Young LLP as Auditors and to authorise the Directors to determine their remuneration.
By order of the Board
Mark Bache
Secretary
23 May 2011
Report of the Directors continued 27
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Corporate Governance
Principles of good governance
When the Company transferred to AIM in November 2006 the Directors committed to maintain levels of corporate governance in line with those 
previously adopted by the Group. Therefore, although The Financial Services Authority’s Listing Rules which incorporate the Combined Code of 
Corporate Governance (“the Code”) are not mandatory for AIM listed companies, the Group remains committed to high standards of corporate 
governance and has applied the principles set out in Section 1 of the Code as described below and in the Directors’ Remuneration Report, in a manner 
appropriate to the size and nature of the Group.
The Group complied with the provisions set out in Section 1 of the Code, as stated at November 2006, throughout the year and up to the date of 
approval of the Annual Report and Accounts.
The Board and its committees:
(a) The Board
 The Board normally comprises a non-executive Chairman, two other non-executive Directors and at least two 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 Group. 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 Group’s operations and the Finance 
Director reports on the financial position of the Group. 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 Group are reviewed on a regular basis.
 All non-executive Directors are considered to be independent by the Board. Tom Brown is the independent non-executive Chairman and Keith 
Jackson is the senior independent non-executive Director. There is a schedule of matters which are reserved for decision by the Board and matters 
which are delegated to the various Board committees or to the executive Directors, along with monetary levels of authority for capital expenditure 
and other financial commitments.
 Following the appointment of new Directors, an appropriately tailored induction programme is arranged and the training needs of Directors are 
regularly considered. If appropriate, all Directors have the authority to take independent legal advice and have direct access to the Company 
Secretary.
 Evaluation of the performance of the Board and evaluation of the performance of individual Directors is conducted regularly on an annual cycle.
(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 
the parameters set by the Board. There is a clear division of responsibilities between the two roles.
(c) Service contracts
 See page 31 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 Nominations Committee makes recommendations to the Board on the composition of the Board generally and on the balance between 
executive and non-executive Directors. It also makes recommendations on the appointment of new Directors and subsequent reappointments on 
retirement by rotation. It comprises the non-executive Directors and the Chief Executive. The Chairman of the Committee is Tom Brown. 28
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(f) Re-election of Directors
 At the Annual General Meeting to be held on 14 July 2011 (see the Notice of Annual General Meeting on pages 75 to 77), all of the Directors will 
retire and, being eligible, offer themselves for re-election. Notwithstanding that Article 94 of the Articles of Association requires only a selection of 
the Directors to retire by rotation, the Directors have taken the decision to apply the good corporate governance provisions of the UK Corporate 
Governance Code in respect of the re-election of Directors as it applies to FTSE 350 companies and consequently to require all Directors to be 
subject to re-election.
(g) Directors’ remuneration
 The statement of the Company’s policy on executive Directors’ remuneration and details of Directors’ emoluments are contained in the Directors’ 
Remuneration Report on pages 30 to 33.
(h) Relations with shareholders
 Members of the Board hold meetings from time to time with major shareholders to discuss the Company’s strategy and financial performance. These 
are usually held after the public announcement of results each 6 months and usually involve the Company’s brokers, through whom feedback from 
institutional investors is obtained as necessary.
 The Board uses the Annual General Meeting to communicate with all private and institutional investors and welcomes their participation.
(i) Audit Committee
 The Audit Committee, which consists of the three non-executive Directors, Keith Jackson (Chairman), Tom Brown and Alan Howarth, meets at least 
twice per year with the external Auditors in attendance when required. It has formal terms of reference and it assists the Board in ensuring that 
appropriate accounting policies, financial systems, internal controls and compliance procedures are in place. It also reviews the relationship between 
the Group and the external Auditors in terms of the provision of non-audit services and ensuring that Auditor independence and objectivity is 
maintained. The Auditors have direct access to the Chairman of the Audit Committee. A formal “whistle-blowing” policy is in operation, providing 
direct access to the Chairman of the Audit Committee, in relation to any concerns staff may have concerning the propriety of Group operations and 
activities. No issues or incidents have come to light as a result of this policy.
 All proposals for the provision of non-audit services by the external Auditor are pre-approved by the Audit Committee or its delegated member, the 
overriding consideration being to ensure that the provision of non-audit services does not impact the external Auditor’s independence and 
objectivity.
(j) Remuneration Committee
 The Remuneration Committee comprises the three non-executive Directors. Further details are shown in the Directors’ Remuneration Report.
(k) Annual General Meeting
 All Directors expect to attend the Annual General Meeting and to be 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”, as stated at November 2006. 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.
Corporate Governance continued 29
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
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 Directors of each business are required to complete an annual 
internal control questionnaire, which when combined with regular reviews gives the Board confidence that internal controls are effective.
The Group also 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. This is carried out as a specific exercise as part of the annual budgeting process, but is also part of the day to 
day management process of each business. 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:
	 z Clear responsibilities on the part of line and financial management for good financial controls in the production of accurate and timely financial 
management information.
	 z The control of key financial risks through clearly laid down authorisation levels and proper segregation of accounting duties.
	 z 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.
	 z Reporting on compliance with internal financial controls and procedures by each individual business unit under the supervision of the Group 
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 
currently undertaken by the Group are adequately performed by the management and that the Group has not yet reached a size where a separate 
internal audit function would be an appropriate or cost effective method of ensuring compliance with Group policies. It therefore does not currently 
propose to introduce a Group internal audit function. This area will be kept under review as part of the Board’s assessment of the Group’s systems of 
internal control.
Summary of attendance at meetings
 Board Nominations Remuneration Audit 
 meetings Committee Committee Committee
Number of meetings in the year 10 1 5 2
Tom Brown 10 1 5 2
Keith Jackson 10 1 5 2
Alan Howarth 10 1 5 2
Tim Hair 10 1 n/a n/a
Mark Bache 10 n/a n/a n/a
Adam Vicary (Resigned 18 May 2010) 1 n/a n/a n/a
n/a – Indicates that a Director was not a member of a particular committee.
By order of the Board
Mark Bache
Secretary
23 May 2011 30
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Directors’ Remuneration Report
Information not subject to audit
Remuneration Committee
The Remuneration Committee comprises the three non-executive Directors: Alan Howarth (Chairman), T om Brown and Keith Jackson. The committee meets 
when necessary, usually at least twice per year, and is responsible for determining the remuneration packages of the executive Directors and of the Chairman.
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, without paying more than necessary for the purpose. 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 a number of 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
 In order to link executive remuneration to Group performance, executive Directors participate in bonus schemes appropriate to their objectives.  
For the year ended 31 March 2011 the bonus in respect of Tim Hair and Mark Bache was linked to the profit performance of the Group and the 
achievement of personal objectives. The maximum amount of bonus payable is 100% of their basic salary.
(c) Share options
 An incentive to achieve longer-term improvements in shareholder value is afforded through two share option schemes which were established in 
2007. The key features of the schemes are summarised as follows:
(i) A Performance Share Plan which grants nil cost options under an Enterprise Management Scheme (“EMI Options”). The EMI Options will normally 
become exercisable in three equal tranches on each of the third, fourth and fifth anniversaries of the date of grant subject to the satisfaction of a 
performance condition set by the Remuneration Committee of the Company. The proportion of awards that become exercisable under each tranche 
of the EMI Option varies on a straight line basis, from 25% to 100%, for average growth in underlying fully diluted EPS of between 5% p.a. and 10% 
p.a. above RPI over the period between grant and exercise dates. No options are exercisable if growth is below this range.
(ii) Non-EMI qualifying options are also granted under the Performance Share Plan. Non-EMI options become exercisable on the third anniversary of 
the date of grant subject to the satisfaction of a performance condition set by the Remuneration Committee of the Company. The proportion of 
Non-EMI awards that become exercisable varies on a straight line basis from 25% to 100% based on the Company’s TSR ranking against a 
comparator group between the median and upper quartile ranking. No options are exercisable if growth is below this range. These options expire 
on the 10
th
 anniversary of grant.
(iii) A Share Option Plan (“SOP”) which issues options at the average quoted market price of the Company’s shares over a period of up to 90 trading 
days prior to grant. The options will normally become exercisable on or after the third anniversary of the date of grant subject to the satisfaction 
of performance conditions set by the Remuneration Committee of the Company. The proportion of awards that become exercisable varies on a 
straight line basis, from 25% to 100%, for average growth in Total Shareholder Return of between 23.8% and 50.7% per annum over the period 
between the grant and vesting dates. This is equivalent to achieving a share price in the range of 100p to 180p. No options are exercisable if 
growth is below this range.
 Certain options were granted under this scheme (as detailed on page 32) in parallel to the options outstanding under schemes (ii) and (iii) above. 
These parallel options are only tested against the above vesting conditions, and hence are potentially eligible to vest, in the event that the options 
that they are granted in parallel to fail to vest.
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 
reinvested to purchase additional shares. 31
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Performance graph – Total Shareholder Return
Service contracts
All executive Directors who served during the year have rolling service contracts terminable on no more than 1 year’s notice.
n on-executive Directors
Remuneration of the non-executive Directors, apart from the Chairman, is approved each year by the Chairman and the executive Directors. The 
Chairman’s remuneration is approved by the Remuneration Committee.
Tom Brown has entered into a letter of engagement with the Company, and Tom Brown & Company Limited has entered into a service agreement with 
the Company both originally dated 12 September 2003 and updated on 27 January 2005. The letter states that the term of his appointment by the 
Company will be three years from the date of the letter unless terminated by either party giving to the other three months notice, or one year in the 
event of a change in control of the Company. At the Board Meeting held on 24 April 2008 it was resolved to extend this for a further 3 year term and at 
the Board Meeting held on 24 March 2011 it was resolved to extend this for up to a further 1 year. The other non-executive Directors have 
comprehensive letters of appointment but do not have formal contracts.
Information subject to audit
Directors’ emoluments
     Total emoluments
 Basic   Annual excluding pensions
 salary Fees Benefits Bonus 2011 2010 
 £000 £000 £000 £000 £000 £000
Executive
Tim Hair 185 — 20 130 335 253
Mark Bache 133 — 12 91 236 186
Adam Vicary* (Resigned 17 May 2010) 45 — 7 — 52 135
n on-Executive
Tom Brown
†
 14 43 — — 57 57
Keith Jackson 23 — — — 23 23
Alan Howarth 23 — — — 23 23
Total 423 43 39 221 726 677
Total 2009 442 43 50 142 677
* Adam Vicary resigned from the Board on 17 May 2010, but remained employed by the Group as Managing Director of Chamberlin & Hill Castings Ltd until 30 September 2010, 
and the table includes all remuneration to that date.
†
 Includes consultancy fees in respect of services provided to the Company.
300
250
200
150
100
50
0
Datastream Return Index rebased to 100
Mar 06
May 06
Jul 06
Sep 06
Nov 06
Jan 07
Mar 07
May 07
Jul 07
Sep 07
Nov 07
Jan 08
Mar 08
Jul 08
Sep 08
Nov 08
Jan 09
Mar 09
May 09
Jul 09
Sep 09
Nov 09
Jan 10
Mar 10
May 10
Jul 10
Sep 10
Nov 10
Jan 11
Mar 11
FTSE Engineering & Machinery
Chamberlin plc 32
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Directors’ Remuneration Report continued
Benefits include all assessable tax benefits arising from employment by the Company, and relate mainly to the provision of company cars and private 
medical insurance. 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. The emoluments of other key 
management personnel are disclosed in note 26.
Directors’ pensions
No retirement benefits accrued during the year to Directors under the Chamberlin & Hill Staff Pension and Life Assurance Scheme (2010: nil) which is a 
closed defined benefit scheme.
Contributions into personal pension plans
  Contribution Contribution 
  paid  paid 
 Percentage of 2011 2010
 basic salary £000 £000
T Hair 10% 19 17
M Bache 8% 10 10
A Vicary 8% 4 7
No other pension contributions were paid in respect of Directors other than as disclosed above.
Directors’ options
 31   Lapsed or 31 Option
 March Granted Exercised surrendered March exercise 
 2010 in year in year in year 2011 price Exercisable between Note
Tim Hair 16,665 — — 16,665 — nil 27.03.2010 – 27.03.2017
 16,665 — — — 16,665 nil 27.03.2011 – 27.03.2017
 16,665  — — 16,665 nil 27.03.2012 – 27.03.2017
 11,940 — — — 11,940 nil 02.07.2011 – 02.07.2018
 132,000 — — — 132,000 nil 19.12.2011 – 19.12.2012
 193,935 — — — 193,935 52.8p 23.02.2013 – 23.02.2020 #
 698,584 — — — 698,584 52.8p 23.02.2013 – 23.02.2020
Mark Bache 12,819 — — 12,819 — nil 27.03.2010 – 27.03.2017
 12,819 — — — 12,819 nil 27.03.2011 – 27.03.2017
 12,819 — — — 12,819 nil 27.03.2012 – 27.03.2017
 17,910 — — — 17,910 nil 02.07.2011 – 02.07.2018
 96,000 — — — 96,000 nil 19.12.2011 – 19.12.2012
 152,367 — — — 152,367 52.8p 23.02.2013 – 23.02.2020 #
 293,892 — — — 293,892 52.8p 23.02.2013 – 23.02.2020
Adam Vicary 11,281 — — 11,281 — nil 27.03.2010 – 27.03.2017
 11,281 — — 11,281 — nil 27.03.2011 – 27.03.2017
 11,281 — — 11,281 — nil 27.03.2012 – 27.03.2017
 13,432 — — 13,432 — nil 02.07.2011 – 02.07.2018
 51,947 — — 51,947 — nil 19.12.2011 – 19.12.2012
 99,222 — — 99,222 — 52.8p 23.02.2013 – 23.02.2020 #
 49,531 — — 49,531 — 52.8p 23.02.2013 – 23.02.2020
 1,933,055 — — 277,459 1,655,596
Options marked # are granted in parallel to options in existence at 31 March 2009, as noted above. These options are only tested against the vesting 
conditions as set out on page 30 (and thus potentially become eligible to vest), in the event that the options that they are granted in parallel to fail to 
vest. Only the original options or the parallel options can vest, not both. 33
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Option grants are exercisable only upon the achievement of the performance targets explained on page 30.
No consideration is payable for the grant of an option, which is exercisable at a price to be determined by the Remuneration Committee at the time 
when the option is granted as detailed above.
No Directors exercised options during the year.
29,484 options lapsed as the vesting criteria were not met. 247,975 options in favour of Adam Vicary lapsed following his resignation from the Group.
There have been no changes in the interests set out above between 1 April 2011 and 24 May 2011.
The mid-market price of the shares at 31 March 2011 was 104.5p and ranged between 54.5p and 130.0p during the year.
On behalf of the Board
alan Howarth
Chairman, Remuneration Committee
23 May 2011 34
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Independent Auditors’ Report 
to the members of Chamberlin plc
We have audited the financial statements of Chamberlin plc for the year ended 31 March 2011 which comprise the Consolidated Income Statement, the 
Consolidated and Parent Company Statement of Comprehensive Income, the Consolidated and Parent Company Balance Sheet, the Consolidated and 
Parent Company Cash Flow Statement, the Group and Parent Company Statement of Changes in Equity and the related notes 1 to 26. The financial 
reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by 
the European Union and, as regards the Parent Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 Auditor’s 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 a uditor
As explained more fully in the Directors’ Responsibilities Statement set out on page 25, the Directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in 
accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the 
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting 
policies are appropriate to the Group’s and the Parent Company’s circumstances and have been consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read 
all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements. If we 
become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion:
	 z the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 March 2011 and of the 
Group’s profit for the year then ended;
	 z the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
	 z the Parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied 
in accordance with the provisions of the Companies Act 2006; and
	 z the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies a ct 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the 
financial statements. 35
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
	 z adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches 
not visited by us; or
	 z the Parent Company financial statements are not in agreement with the accounting records and returns; or
	 z certain disclosures of Directors’ remuneration specified by law are not made; or
	 z we have not received all the information and explanations we require for our audit.
Christopher Voogd (Senior statutory Auditor)
for and on behalf of Ernst & Young LLP , Statutory Auditor
Birmingham
23 May 2011 36
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  14/06/2011 Proof 5 Financial Statements
Financial Statements 38–74
37
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
Performance Governance Financial Statements Introduction
20453-04  14/06/2011 Proof 5 38
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
 Year ended 31 March 2011 Year ended 31 March 2010 restated
   Non-   Non-
  Underlying underlying* Total Underlying underlying* Total
 Notes £000 £000 £000 £000 £000 £000
Revenue 3 39,801 — 39,801 28,453 — 28,453
Cost of sales  (32,368) — (32,368) (23,992) — (23,992)
Foreign currency gain  — — — — 430 430
Gross profit  7,433 — 7,433 4,461 430 4,891
Other operating expense 4 (6,529) — (6,529) (5,356) — (5,356)
Trading profit/(loss)  904 — 904 (895) 430 (465)
Business reorganisation costs  — (121) (121) — (556) (556)
Goodwill impairment  — (202) (202) — — —
Share-based payment charge  — (73) (73) — (28) (28)
Operating profit/(loss)  904 (396) 508 (895) (154) (1,049)
Finance costs 6 (100) (75) (175) (133) (239) (372)
Profit/(loss) before tax 7 804 (471) 333 (1,028) (393) (1,421)
Tax (expense)/credit 8 (305) 70 (235) 77 124 201
Profit/(loss) for the year from
continuing operations attributable to 
equity holders of the Parent Company  499 (401) 98 (951) (269) (1,220)
Earnings/(loss) per share:
basic 11   1.3p   (16.4)p
underlying 11 6.7p   (12.8)p
diluted 11   1.2p   (16.4)p
diluted underlying 11 6.1p   (12.8)p
* Non-underlying items represent business reorganisation costs, goodwill impairment, net financing costs on pension obligations, share based payment costs and associated tax 
impact. In prior periods Non-underlying also included the movement in unrealised mark to market foreign currency gains and losses on monetary assets and liabilities and 
foreign currency contracts, net of realised losses on surplus foreign exchange contracts.
 Prior year 31 March 2010 has been restated to reclassify the share based expense in non-underlying items, to be consistent with the presentation for the current year.
Consolidated Income Statement
for the year ended 31 March 2011 39
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
       2011 2010
 Notes £000 £000
Profit/(loss) for the year  98 (1,220)
Other comprehensive income
Movements in fair value on cash flow hedges taken to equity  (108) —
Reclassification for cashflow hedge included in cost of sales  (142) —
Deferred tax on movement in fair value hedges  65 —
Actuarial losses on pension assets and liabilities 22 (59) (572)
Deferred tax on actuarial losses  16 160
Other comprehensive income for the period net of tax  (228) (412)
Total comprehensive income for the period
attributable to equity holders of the Parent Company  (130) (1,632)
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2011 40
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Consolidated Balance Sheet
at 31 March 2011
  31 March 31 March
  2011 2010
 Notes £000 £000
Non-current assets
Property, plant and equipment 13 8,170 8,319
Intangible assets 14 494 650
Deferred tax asset 18 763 923
  9,427 9,892
Current assets
Inventories 15 2,969 3,294
Trade and other receivables 16 9,588 6,358
  12,557 9,652
Total assets  21,984 19,544
Current liabilities
Financial liabilities 17 2,881 3,449
Trade and other payables 17 8,952 5,731
Provisions 17 85 48
  11,918 9,228
Non-current liabilities
Deferred tax 18 85 92
Defined benefit pension scheme deficit 22 2,202 2,366
  2,287 2,458
Total liabilities  14,205 11,686
Capital and reserves
Share capital 19 1,859 1,859
Share premium  862 862
Capital redemption reserve  109 109
Hedging reserve  (185) —
Retained earnings  5,134 5,028
Total equity  7,779 7,858
Total equity and liabilities  21,984 19,544
Tim Hair
Mark Bache 
} 
Directors
The accounts were approved by the Board of Directors on 23 May 2011. 41
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Parent Company Balance Sheet
at 31 March 2011
  31 March 31 March
  2011 2010
 Notes £000 £000
Non-current assets
Property, plant and equipment 13 1,038 1,032
Intangible assets 14 3 —
Investments 21 8,159 8,159
Deferred tax asset 18 596 698
  9,796 9,889
Current assets
Trade and other receivables 16 150 119
Income taxes receivable 16 14 —
Amounts due from subsidiary undertakings 16 7,898 8,605
  8,062 8,724
Total assets  17,858 18,613
Current liabilities
Financial liabilities 17 4,224 4,556
Trade and other payables 17 557 275
Amounts due to subsidiary undertakings 17 1,942 1,942
  6,723 6,773
Non-current liabilities
Amounts due to subsidiary companies 18 66 66
Deferred tax 18 34 38
Defined benefit pension scheme deficit 22 2,202 2,366
  2,302 2,470
Total liabilities  9,025 9,243
Capital and reserves
Share capital 19 1,859 1,859
Share premium  862 862
Capital redemption reserve  109 109
Retained earnings  6,003 6,540
Total equity  8,833 9,370
  17,858 18,613
Tim Hair
Mark Bache 
} 
Directors
The accounts were approved by the Board of Directors on 23 May 2011. 42
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Consolidated Cash Flow Statement
for the year ended 31 March 2011
  Year ended Year ended
  31 March 31 March
  2011 2010
Operating activities Note £000 £000
Profit/(loss) for the year  98 (1,220)
Adjustments to reconcile profit/(loss) for the year to net cash
inflow from operating activities:
Taxation  235 (201)
Net finance costs  175 372
Depreciation of property, plant and equipment 13 1,101 1,129
Amortisation of software 14 63 44
Amortisation of development costs 14 83 83
Goodwill impairment  202 —
Profit on disposal of property, plant and equipment 7 (20) (7)
Share based payments 20 73 28
Pension element of finance costs 6 (75) (239) 
Difference between pension contributions paid and Hedge reserve impact on cashflow
amounts recognised in the Income Statement  (223) (34)
Decrease/(increase) in inventories  325 1,784
(Increase)/decrease in receivables  (3,215) (354)
Increase/(decrease) in payables  2,932 (883)
Movement in provisions  37 —
Cash generated from operations  1,791 502
Net cash flow from operating activities  1,791 502
Investing activities
Purchase of property, plant and equipment 13 (1,026) (523)
Purchase of software 14 (191) (87)
Development costs 14 — —
Disposal of plant and equipment  94 50
Net cash flow from investing activities  (1,123) (560)
Financing activities
Interest paid 6 (100) (133)
Net cash flow from financing activities  (100) (133)
Net increase/(decrease) in cash and cash equivalents  568 (191)
Cash and cash equivalents at the start of the year  (3,449) (3,258)
Cash and cash equivalents at the end of the year  (2,881) (3,449)
Cash and cash equivalents comprise:
Financial liabilities 17 (2,881) (3,449)
  (2,881) (3,449) 43
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Parent Company Cash Flow Statement
for the year ended 31 March 2011
  Year ended Year ended
  31 March 31 March
  2011 2010
Operating activities Note £000 £000
Loss/profit for the year  (545) 2,593
Adjustments to reconcile profit for the year to net cash
inflow from operating activities:
Taxation  100 43
Net finance costs  215 356
Depreciation of property, plant and equipment 13 50 51
Amortisation of software 14 — 3
Pension element of finance costs  (75) (239)
Share based payments 20 51 28
Difference between pension contributions paid and  
amounts recognised in the Income Statement  (223) (34)
(Increase)/decrease in receivables  676 (5,127)
Decrease/increase in payables  282 (1,213)
Cash generated from operations  531 (3,539)
Group relief  — 330
Net cash flow from operating activities  531 (3,209)
Investing activities
Purchase of property, plant and equipment 13 (63) (19)
Purchase of Software 14 (3) —
Disposal of plant and equipment  7 15
Net cash flow from investing activities  (59) (4)
Financing activities
Interest paid  (140) (118)
Net cash flow from financing activities  (140) (118)
Net (decrease)/increase in cash and cash equivalents  332 (3,331)
Cash and cash equivalents at the start of the year  (4,556) (1,225)
Cash and cash equivalents at the end of the year  (4,224) (4,556)
Cash and cash equivalents comprise:
Financial liabilities 17 (4,224) (4,556)
  (4,224) (4,556) 44
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Statement of Changes in Equity
 
  Capital Share   Attributable to
 Share redemption premium Hedging Retained equity holders
 capital reserve account reserve earnings of the Parent
Group £000 £000 £000 £000 £000 £000
Balance at 1 April 2009 1,859 109 862 — 6,632 9,462
Loss for the year     (1,220) (1,220)
Other comprehensive income for the year
net of tax — — — — (412) (412)
Share-based payment expense — — — — 28 28
Balance at 1 April 2010 1,859 109 862 — 5,028 7,858
Profit for the year — — — — 98 98
Other comprehensive income for the year
net of tax — — — (185) (43) (228)
Share-based payment expense — — — — 51 51
Balance at 31 March 2011 1,859 109 862 (185) 5,134 7,779
Company £000 £000 £000 £000 £000 £000
Balance at 1 April 2009 1,859 109 862 — 4,331 7,161
Profit for the year     2,593 2,593
Other comprehensive income for the year 
net of tax — — — — (412) (412)
Recognition of share-based payments — — — — 28 28
Balance at 1 April 2010 1,859 109 862 — 6,540 9,370
Loss for the year — — — — (545) (545)
Other comprehensive income for the year
net of tax — — — — (43) (43)
Share-based expense — — — — 51 51
Balance at 31 March 2011 1,859 109 862 — 6,003 8,833
Share premium account
The share premium account balance includes the proceeds that were above the nominal value from issuance of the Company’s equity share capital
comprising 25p shares.
Capital redemption reserve
The capital redemption reserve has arisen on the cancellation of previously issued shares and represents the nominal value of those shares cancelled.
Retained earnings
Retained earnings include the accumulated profits and losses arising from the Consolidated Income Statement and items from the Consolidated
Statement of Comprehensive Income attributable to equity shareholders, less distributions to shareholders and share based compensation expense.
Hedging reserve
The hedging reserve records the effective portion of the net change in the fair value of the cash flow hedging instruments related to hedged transactions
that have not yet occurred. 45
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Notes to the Accounts
at 31 March 2011
1 Authorisation of financial statements and statement of compliance with IFRS
The Group’s and Company’s financial statements of Chamberlin plc (the ‘Company’) for the year ended 31 March 2011 were authorised for  
issue by the Board of the Directors on 23 May 2011 and the balance sheets were signed on the Board’s behalf by Tim Hair and Mark Bache. The 
Company is a public limited company incorporated and domiciled in England & Wales. The Company’s ordinary shares are traded on AIM within 
the London Stock Exchange.
The Group’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company’s 
financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the 
provisions of the Companies Act 2006.
The principal accounting policies adopted by the Group and by the Company are set out in note 2.
2 Summary of significant accounting policies
Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis and are presented in sterling and all values are rounded to  
the nearest thousand pounds (£000) except when otherwise indicated. The Company has taken advantage of the exemption provided under 
section 408 of the Companies Act 2006 not to publish its individual income statement and related notes.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Chamberlin plc and its subsidiaries as at 31 March each year. The 
financial statements of subsidiaries are prepared for the same reporting year as the Parent Company, using consistent accounting policies. All 
inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. 
Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which 
control is transferred out of the Group.
Change of hedge accounting — IAS 39 Financial Instruments : Recognition and Measurement
With effect from 1 April 2010 the Group adopted hedge accounting. Foreign currency forward contacts are being used to hedge the foreign 
currency risks on highly probable forecasted sales transactions. The fair value of forward currency contracts is calculated by reference to current 
market prices for contracts with similar maturity profiles. The proportion of the gain or loss on the hedging instrument that is determined as  
an effective hedge is recognised directly in equity through the statement of comprehensive income and the gain or loss on any ineffective 
component of a hedging instrument is recognised in profit and loss. Amounts initially recognised in equity are transferred to the income 
statement within cost of sales when the forecast hedged transaction occurs.
Going concern
The Group’s activities together with the factors likely to affect its future development, performance and financial position, including its cash flows, 
liquidity position and borrowing facilities, are described in the Chief Executive’s Review on pages 12 to 15 and the Finance Director’s Review on 
pages 16 to 17. In addition, Note 25 to the Group Financial Statements includes the Group’s objectives and policies for managing capital and 
financial risks in relation to currency, interest rates, credit and liquidity.
The Group’s forecasts and projections, taking account of reasonably possible changes in trading conditions, show that the Group is able to operate 
within the level of its current bank facilities, the principal element of which is a £5m overdraft facility expiring in June 2012. As a consequence, the 
Directors believe that the Group is well placed to manage its business risks successfully despite the current economic uncertainty.
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence 
for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Financial Statements.
Presentation of the Consolidated Income Statement
The Income Statement is allocated between Underlying items which relate to the trading activities of the business and Non-underlying items 
which are either non-recurring or are valued using market derived data which is outside of management’s control. The presentation of the 
Consolidated Income Statement has been changed to allocate share based payments as Non-underlying items. Due to the nature of the share 
schemes, the Directors believe it is helpful to strip out the charge from underlying results. The presentation of the Income Statement for the year 
ended 31 March 2010 has been restated to be consistent with this treatment. The Directors believe that this format sets out the performance of 
the Group more clearly. 46
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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2 Summary of significant accounting policies continued
New standards adopted
The accounting policies adopted are consistent with those of the previous financial year. Amended IFRS that have become effective in the period 
have not had a material impact on the financial statements:
New standards and interpretations not applied
The IASB and IFRIC have issued the following standards and interpretations with an effective date after the date of these financial statements. 
They have not been adopted early by the Group and the Directors do not anticipate that the adoption of these standards and interpretations will 
have a material impact on the Group’s reported income or net assets in the period of adoption.
International Accounting Standards  Effective date
IFRS 1 – Amendments to IFRS 1 – Limited Exemption from comparative IFRS 7 disclosures 1 July 2010
IFRS 9 Financial Instruments 1 January 2013
IAS 24 – Related party disclosures (revised) 1 January 2011
IAS 32 – Amendment to IAS 32: Classification of Rights Issues 1 February 2010
Improvements to IFRS Various
International Financial Reporting Interpretive Committee (IFRIC)
IFRIC 14 – Amendment: Payment of a minimum funding requirement 1 January 2011
IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
Business combinations and goodwill
Business combinations from 1 April 2010
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the 
consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. The choice of 
measurement of non-controlling interest, either at fair value or at the proportionate share of the acquiree’s identifiable net assets is determined on 
a transaction by transaction basis. Acquisition costs incurred are expensed and included in administrative expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in 
accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the 
fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in accordance with IAS 39 either in profit 
or loss or in other comprehensive income. If the contingent consideration is classified as equity, it is not remeasured until it is finally settled within 
equity.
Goodwill is initially measured at cost being the excess of the aggregate of the acquisition-date fair value of the consideration transferred and the 
amount recognised for the non-controlling interest (and where the business combination is achieved in stages, the acquisition-date fair value of 
the acquirer’s previously held equity interest in the acquiree) over the net identifiable amounts of the assets acquired and the liabilities assumed  
in exchange for the business combination. Assets acquired and liabilities assumed in transactions separate to the business combinations, such as 
the settlement of pre-existing relationships or post-acquisition remuneration arrangements are accounted for separately from the business 
combination in accordance with their nature and applicable IFRSs. Identifiable intangible assets are recognised separately from goodwill. 
Contingent liabilities representing a present obligation are recognised if the acquisition-date fair value can be measured reliably. If the aggregate  
of the acquisition-date fair value of the consideration transferred and the amount recognised for the non-controlling interest (and where the 
business combination is achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree) is lower 
than the fair value of the assets, liabilities and contingent liabilities and the fair value of any pre-existing interest held in the business acquired, the 
difference is recognised in profit and loss.
Notes to the Accounts continued
  47
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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2 Summary of significant accounting policies continued
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill 
acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to 
benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or group of 
units to which goodwill is allocated shall represent the lowest level within the entity at which good will is monitored for internal management 
purposes and will not be larger than an operating segment before aggregation. Where goodwill forms part of an operation which is disposed of, 
the goodwill associated with that operation is included in the carrying amount of the operation when determining the gain or loss on disposal of 
the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of 
the cash-generating unit retained.
Business combinations prior to 1 April 2010
Business combinations are accounted for using the purchase method. The cost of an acquisition is measured as the cash paid, and the fair value of 
other assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the 
acquisition. The acquired identifiable assets, liabilities and contingent liabilities are measured at their fair value at the date of acquisition.
Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost 
of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) is credited to the income statement in the 
period of acquisition.
Goodwill on acquisition is initially measured at cost being the excess of the cost of the business combination over the acquirer’s interest in  
the net fair value of the identifiable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less any 
accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate 
that the carrying value may be impaired.
As at the acquisition date, any goodwill acquired is allocated to each of the cash-generating units acquired. Impairment is determined by assessing 
the recoverable amount of the cash generating unit to which the goodwill relates. Where the recoverable amount of the cash generating unit is 
less than the carrying amount, an impairment loss is recognised. When there is a partial disposal of a cash generating unit, goodwill relating to the 
operation disposed of is taken into account in determining the gain or loss on disposal of that operation. The amount of goodwill allocated to a 
partial disposal is measured on the basis of the relative values of the operation disposed of and the operation retained.
Property, plant and equipment
All classes of property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value. The initial cost of an 
asset comprises its purchase price or construction cost, and any costs directly attributable to bringing the asset into operation. The purchase price 
or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. The capitalised value of 
a finance lease is also included within property, plant and equipment. For property, where appropriate the deemed cost as at the date of transition 
to IFRS is the fair value at the date of the last valuation of these assets.
With the exception of freehold land, depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Freehold buildings and long leasehold property — over expected useful life (not exceeding 50 years)
Short leasehold property — over the term of the lease
Plant and other equipment — 2 to 10 years
Motor vehicles  — 4 years
The estimated useful lives of property, plant and equipment are reviewed on an annual basis and, if necessary, changes in useful lives are 
accounted for prospectively.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying 
value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or 
cash-generating units are written down to their recoverable amount. 48
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Annual Report and Accounts for the year ended 31 March 2011
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2 Summary of significant accounting policies continued
The recoverable amount of property, plant and equipment is the greater of net selling price and value in use. In assessing value in use, the 
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which 
the asset belongs. Impairment losses are recognised in the income statement in the cost of sales line item or in the other operating expenses line 
item depending on the asset concerned.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the 
continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds 
and the carrying amount of the item) is included in the income statement in the year the item is derecognised.
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Computer software, intellectual property 
rights and other intangible assets are initially recorded at cost. Where these assets have been acquired through a business combination, this will be 
the fair value allocated in the acquisition accounting. Where these have been acquired other than through a business combination, the initial cost 
is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. Computer software and other intangible 
assets, such as capitalised development expenditure under IAS 38, are amortised over their useful lives on a straight-line basis. Estimated useful life 
is the shorter of legal duration and economic useful life, which represents the Directors’ best estimate of the period over which the asset may be 
used to generate significant economic benefits to the Group. Software has an estimated useful life of 3 to 10 years.
Intangible assets are tested for impairment annually or more frequently whenever events or changes in circumstances indicate that the carrying 
value may not be recoverable. Impairment losses are measured on a similar basis to property, plant and equipment. Useful lives are also examined 
on an annual basis and adjustments, where applicable, are made on a prospective basis.
Research and development costs
Research costs are expensed as incurred.
Clearly defined and identifiable development projects in which the technical degree of exploitation, adequacy of resources and potential market 
or development possibility in the undertaking can be clearly demonstrated, and where it is the intention to produce, market or execute the 
project, are capitalised when a correlation exists between the costs incurred and future benefits. Costs not meeting such criteria are expensed as 
incurred. Amortisation is applied as set out for intangible assets above, the useful life being determined for individual development projects. For 
projects capitalised to date a useful life of 5 years was considered appropriate.
The Company’s investments in subsidiaries
Investments in subsidiaries are stated at cost and dividends from subsidiaries are taken to profit or loss when the right to receive payment is 
established.
Inventories
Inventories are valued at the lower of cost and net realisable value, which is arrived at as follows:
— Raw materials; purchase cost on a first-in, first-out basis;
—  Finished goods and work-in progress; where detailed individual product costing information is available, actual cost of direct materials and 
labour and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.
Where considered appropriate, cost of finished goods and work in progress is arrived at from selling price less the calculated margin on the 
products concerned. This method is utilised within the engineering division in the absence of detailed individual product costing information.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs 
necessary to make the sale.
Notes to the Accounts continued
  49
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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2 Summary of significant accounting policies continued
Trade and other receivables
Trade receivables, which generally have 30–60 day terms, are recognised and carried at original invoice amount less any provision for bad debts. A 
provision for impairment, in respect of trade receivables, is made when there is objective evidence (such as the probable insolvency or significant 
financial difficulties of the debtor) that the Group will not be able to collect all of the amount due under the original terms of the invoice. The 
carrying amount of the receivable is reduced through a provision and impaired debts are derecognised when they are assessed as uncollectible.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash in hand and current balances with banks and similar institutions and short-term 
deposits with an original maturity of three months or less which are subject to insignificant risks of changes in value.
For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of 
outstanding bank overdrafts.
Leases
Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the lease term.
Foreign currency translation, derivative financial instruments and hedging
The functional and presentation currency of Chamberlin plc is Sterling (£). Transactions in foreign currencies are recorded in the functional 
currency at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are 
retranslated at the functional currency rate of exchange ruling at the balance sheet date. Any resulting exchange differences are taken to the 
income statement.
The Group is exposed to foreign exchange risk on income streams denominated in foreign currencies. In order to reduce the Group’s exposure to 
currency fluctuations the Group sells a proportion of expected Euro revenues on forward contracts.
With effect from 1 April 2010 the Group adopted hedge accounting in respect of certain sales denominated in foreign currencies. Foreign 
currency forward contacts are being used to hedge the foreign currency risks on highly probable forecasted sales transactions. The fair value of 
forward currency contracts is calculated by reference to current Market prices for contracts with similar maturity profiles. The proportion of the 
gain or loss on the hedging instrument that is determined as an effective hedge is recognised directly in equity through the statement of 
comprehensive income and the gain or loss on any ineffective component of a hedging instrument is recognised in profit and loss. Amounts 
initially recognised in equity are transferred to the income statement within cost of sales when the forecast hedged transaction occurs.
At 31 March 2011 the Group held 12 foreign currency forward contracts designated as hedges of expected future sales to customers in Europe for 
which the Group has highly probable forecasted transactions.
Prior to 1 April 2010 the movement on unrealised gains and losses on commercial hedges that were measured at fair value were taken to the 
income statement and presented within Non-underlying foreign currency gains/(losses). Realised gains and losses in the normal course of business 
are included in cost of sales.
Employee benefits
Wages, salaries, bonuses, social security contributions, paid annual leave and sick leave are accrued in the year in which the associated services are 
rendered by employees of the Group. 50
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Annual Report and Accounts for the year ended 31 March 2011
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2 Summary of significant accounting policies continued
Pensions and other post-employment benefits
The Group operates a number of defined contribution schemes, which require contributions to be made to administered funds separate from  
the Group.
The Group also has a defined benefit pension scheme which is closed to future accrual. The scheme assets are measured at fair value and plan 
liabilities are measured on an actuarial basis, using the projected unit method. As the scheme is closed to future accrual, no service cost of 
providing pension to employees is charged to the income statement. The cost of making improvements to pension and other post-retirement 
benefits is recognised in the income statement on a straight-line basis over the period during which the increase in benefits vests. To the extent 
that any improvement in benefits vests immediately, the cost is recognised immediately. These costs are recognised as an expense.
The interest element of the defined benefit cost represents the change in present value of scheme obligations resulting from the passage of time, 
and is determined by applying the discount rate to the opening present value of the benefit obligation, taking into account material changes in 
the obligation during the year. The expected return on plan assets is based on an assessment made at the beginning of the year of long-term 
market returns on scheme assets, adjusted for the effect on the fair value of plan assets of contributions received and benefits paid during the 
year. The difference between the expected return on plan assets and the interest cost is recognised in the income statement as finance revenue or 
cost.
Actuarial gains and losses may result from: differences between the expected return and the actual return on plan assets; differences between the 
actuarial assumptions underlying the plan liabilities and actual experience during the year; or changes in the actuarial assumptions used in the 
valuation of the plan liabilities. Actuarial gains and losses, and taxation thereon, are recognised in full in the period in which they occur, in the 
statement of other comprehensive income.
For defined contribution plans, contributions payable for the year are charged to the income statement as an operating expense.
Income taxes
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates 
and laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in 
the financial statements, with the following exceptions:
● ● where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business 
combination that at the time of the transaction affects neither accounting nor taxable profit or loss;
● ● in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the 
reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable 
future; and
● ● deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the 
deductible temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related asset 
is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity. Otherwise income tax is recognised 
in the income statement.
Revenue
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and can be reliably measured. 
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods provided in the 
normal course of business, net of discounts, customs duties and sales taxes.
Dividends
Dividend payments are recognised in the period in which they become a binding obligation on the Company, which for interim dividends is when 
they are paid and for final dividends is when they are approved at the AGM.
Notes to the Accounts continued
  51
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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2 Summary of significant accounting policies continued
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset, that necessarily takes a substantial period of  
time to get ready for its intended use or sale, are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed as 
interest payable in the income statement in the period in which they are incurred. Borrowing costs consist of interest and other costs incurred in 
connection with the borrowing of funds.
Share-based payments
The Group grants equity-settled and cash settled share-based payments to certain Directors and employees in the form of share options. Equity 
settled share-based payments are measured at fair value at the date of grant using the Black–Scholes pricing model. Cash settled share-based 
payments are measured at fair value at the balance sheet date using the Black–Scholes pricing model. The fair value is then charged to the income 
statement over the vesting period of the options. In valuing equity settled payments, no account is taken of vesting conditions other than 
conditions linked to the price of the shares of the Company (market conditions). No expense is recognised for awards that do not ultimately vest. 
No credit is taken in respect of charges made in previous years for options which are cancelled or lapse.
At each balance sheet date before vesting, the cumulative expense is calculated taking into account the extent to which the vesting period has 
expired and the Directors’ best estimate of the achievement or otherwise of relevant conditions and the number of shares expected to ultimately 
vest. The movement since the previous balance sheet date is recognised in the income statement.
The values for the expected life of the options and the expected volatility of the share price used in the calculation model are based on the 
Directors’ best estimates, taking into account conditions for exercise, historic data and behavioural considerations.
Operating profit
Operating profit as referred to in the income statement is defined as being profit generated from underlying trading activities before finance costs 
and revenues and before taxation.
Non-underlying items
The Group presents as non-underlying items on the face of the income statement, those items of income and expenditure which, because they 
are either non-recurring or are valued using market derived data which is outside management’s control, merit separate presentation to allow 
shareholders to better understand the elements of financial performance in the year, so as to facilitate comparison with prior periods and to allow 
assessment of trends in financial performance. Non-underlying items include business reorganisation costs, goodwill impairment costs, share 
based payment costs, and unrealised foreign exchange gains/losses and net financing costs of pension obligations.
Use of accounting estimates and judgements
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and 
judgements that affect the reported amount of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance 
sheet date and the reported amounts of revenues and expenses during the reporting period. Actual outcomes could differ from those estimates 
and judgements. Where appropriate, details of estimates and assumptions used are set out in the relevant notes to the accounts.
The key figures in the accounts that are most sensitive to such estimates and assumptions are:
● ● Impairment of Goodwill and Development Costs – the Group determines whether goodwill and development costs are impaired on an 
annual basis or more frequently if there are indicators of impairment. Impairment testing requires an estimate of future cash flows and the 
choice of a suitable discount rate.
● ● Defined benefit scheme pension liabilities – the cost of the closed defined benefit pension plan is determined using actuarial valuations. The 
actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality 
rates and future pension increases.
● ● Valuation of Financial Instruments – the fair value of outstanding foreign currency contracts is dependent upon estimates of future market 
prices.
● ● Dilapidations – the Group makes provision for dilapidation costs, in respect of leasehold premises, based on managements best estimate, 
based on external professional advice, of the costs of making good such dilapidations.
● ● Restructuring provisions – the Group makes provision for restructuring costs, based on managements best estimate of the costs of 
implementing such a restructuring. 52
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Annual Report and Accounts for the year ended 31 March 2011
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3 Segmental analysis
For management purposes, the Group is organised into two operating divisions according to the nature of the products and services. Operating 
segments within those divisions are combined on the basis of their similar long term characteristics and similar nature of their products, services 
and end users as follows:
The Foundries segment is a supplier of iron castings, in raw or machined form, to a variety of industrial customers who incorporate the castings 
into their own products or carry out further machining or assembly operations on the castings before selling them on to their customers.
The Engineering segment provides manufactured and imported products to distributors and end-users operating in the safety and security 
markets. The products fall into the categories of door hardware, hazardous area lighting and control gear.
Management monitors the operating results of its divisions separately for the purposes of making decisions about resource allocation and performance 
assessment. The operating segments disclosed in the financial statements are the same as reported to the Chief Operating Decision Maker.
There are no transactions between operating segments.
The Group’s geographical segments are determined by the location of the Group’s customers.
(i) By operating segment
 Segmental Segmental operating 
 revenue profit/(loss)
 2011 2010 2011 2010
Year ended £000 £000 £000 £000
Foundries 33,082 22,423 1,335 (488)
Engineering 6,719 6,030 315 178
Segment results 39,801 28,453 1,650 (310)
Reconciliation of reported segmental operating profit/(loss)
Segment operating profit/(loss) 1,650 (310)
Shared cost (818) (613)
Reorganisation and impairment costs (note 12) (324) (556)
Net finance costs (175) (372)
Foreign currency mark to market adjustments — 430
Profit/loss before tax 333 (1,421)
Segmental assets
Foundries 14,490 12,188
Engineering 6,045 5,561
 20,535 17,749
Segmental liabilities
Foundries (4,813) (2,246)
Engineering (3,612) (2,702)
 (8,425) (4,948)
Segmental net assets  12,110 12,801
Unallocated net liabilities (4,396) (4,943)
Total net assets 7,714 7,858
Notes to the Accounts continued
  53
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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3 Segmental analysis continued
Capital expenditure, depreciation and amortisation
 Foundries Engineering Total
 2011 2010 2011 2010 2011 2010
Capital additions £000 £000 £000 £000 £000 £000
Property, plant and equipment (note 13) 727 401 299 122 1,026 523
Software (note 14) 190 86 1 1 191 87
Development costs (note 14) — — — — — —
 Foundries Engineering Total
 2011 2010 2011 2010 2011 2010
Depreciation and amortisation £000 £000 £000 £000 £000 £000
Property, plant and equipment (note 13) (930) (940) (172) (189) (1,102) (1,129)
Software (note 14) (49) (28) (14) (16) (63) (44)
Development costs (note 14) (57) (57) (26) (26) (83) (83)
(ii) Geographical information
 2011 2010
Revenue by location of customer £000 £000
United Kingdom 26,903 19,961
Rest of Europe 10,130 6,781
Other countries 2,768 1,711
 39,801 28,453
The Group’s assets and costs are all located within the United Kingdom.
No individual customer represents more than 10% of Group revenue (2010: none).
4 Other operating expenses
 2011 2010
 £000 £000
Distribution costs 1,069 781
Administration and selling expenses 5,460 4,575
Operating expenses before exceptional items 6,529 5,356
Exceptional items (note 12) 323 556
Operating expenses 6,852 5,912 54
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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5 Staff numbers and costs
The average number of people employed by the Group during the year was:
 2011 2010
 Number Number
Management and administration 79 68
Production 313 309
Total employees 392 377
The aggregate employment costs of these employees including severance costs in wages and salaries of £nil (2010: £237,000) were as follows:
 2011 2010
 £000 £000
Wages and salaries 11,865 8,947
Social security costs 1,197 892
Other pension costs 284 308
Share-based payment expense 73 28
 13,419 10,175
Directors’ emoluments summary
 2011 2010
 £000 £000
Directors’ emoluments 727 677
Aggregate gains made by Directors on exercise of options — —
Share-based payment charge of options granted to Directors (see note 20) 73 28
Number of Directors accruing benefits under: Number Number
Defined contribution pension schemes 3 3
Directors’ emoluments are analysed in detail in the Directors’ Remuneration Report on pages 30 to 33.
6 Finance costs and finance revenue
 2011 2010
 £000 £000
Finance costs
Bank overdraft interest payable (100) (133)
Finance cost of pensions (see note 22) (75) (239)
 (175) (372)
Notes to the Accounts continued
  55
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
7 Operating profit/(loss)
 2011 2010
 £000 £000
This is stated after charging/(crediting):
Profit on disposal of fixed assets (20) (7)
Depreciation of owned assets 1,101 1,129
Amortisation of software 63 44
Amortisation of development costs 83 83
Cost of inventories recognised as an expense 17,393 11,758
Business reorganisation costs (note 12) 121 397
Goodwill impairment costs 202 —
Stock written down — 159
Auditors’ remuneration:
Group audit fees 30 30
Audit fees in respect of subsidiaries 47 47
Interim review fees 5 5
Research and development expenditure (excluding capitalised development: note 14) 47 55
Rentals under operating leases:
Hire of plant and equipment 73 93
Other 352 370
8 Tax expense/(credit) reported in the Consolidated Income Statement
 2011 2010
 £000 £000
Current tax:
UK Corporation tax at 28% (2010: 28%) based on taxable profit for the year — —
 — —
Deferred taxation:
Movement in the year (note 18) 218 (362)
Amounts under provided in prior years 1 1
Less element of movement shown in the Statement of Other Comprehensive Income 16 160
 235 (201)
Tax expense/(credit) reported in the Consolidated Income Statement 235 (201)
The UK Chancellor of the Exchequer announced a number of tax reforms in the 2011 Budget. The key change to Corporation tax  that will apply to 
the Group is the reduction in the main Corporation tax rate to 26% from 1 April 2011. The reduction in  the Corporation tax rate to 26% was 
substantively enacted on the 29 March 2011.
It is not anticipated that the subsequent reductions to 23%, once substantively enacted, will have a material effect on the Company’s future 
current or deferred tax charges.
During the year the Group utilised brought forward tax losses of £99,000 (2010: £103,000). 56
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
8 Tax expense/(credit) reported in the Consolidated Income Statement continued
 2011 2010
 £000 £000
Reconciliation of total tax charge
Profit/loss on ordinary activities before tax 333 (1,421)
Corporation tax credit at standard rate of 28% (2010: 28%) on loss before tax 93 (398)
Adjusted by the effects of:
Expenses not deductible for tax purposes 93 22
Timing differences
— unrecognised tax losses — 174
— other timing differences (9) —
Amounts under provided in prior years
— corporation tax 10 —
— deferred tax 1 1
Movement in deferred tax on change in corporation tax rate 47 —
Total tax expense/(credit) reported in the income statement 235 (201)
9 Dividends paid and proposed
 2011 2010
 £000 £000
Paid equity dividends on ordinary shares
2010 final dividend of 0.0p per share (2009: 0.0p per share) — —
2011 interim dividend of 0.0p per share (2010: 0.0p per share) — —
 — —
Proposed final dividend subject to shareholder approval
2011 final dividend of 1.0p per share (2010: 0.0p per share) 75 —
10 Parent company transfer to reserves
The loss dealt with in the accounts of the Parent Company was £445,000 (2010: profit £2,593,000).
After dividends, the loss transferred to reserves was £445,000 (2010: profit £2,593,000).
Notes to the Accounts continued
  57
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
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. Underlying 
earnings per share, which excludes business reorganisation costs, mark to market foreign currency movements and net financing cost of pension 
obligation less related tax thereon, as analysed below, has also been disclosed as the Directors believe this allows a better assessment of the 
underlying trading performance of the Group.
Reorganisation and exceptionals costs are detailed in note 12.
 2011 2010
 £000 £000
Earnings/(loss) for basic earnings per share 98 (1,220)
Reorganisation and exceptionals 323 556
Taxation effect of operating exceptionals (31) (156)
Mark to market foreign currency (gain)/loss — (430)
Taxation effect of mark to market foreign currency (gain)/loss — 106
Net financing costs on pension obligations 75 239
Taxation effect of pension obligation (20) (67)
Share-based payment charge 73 28
Taxation effect of share-based payments (19) (7)
Earnings/(loss) for underlying earnings per share 499 (951)
 2011 2010
 000 000
Weighted average number of ordinary shares 7,438 7,438
Adjustment to reflect shares under options 762 327
Weighted average number of ordinary shares — fully diluted 8,200 7,765
12 Reorganisation and exceptional costs
 2011 2010
 £000 £000
Business reorganisation costs (121) —
Goodwill impairment (202) —
Restructuring and severance costs — (397)
Inventory write down — (159)
 (323) (556)
Taxation
— tax effect of operating exceptionals 34 156
 34 156
Business reorganisation costs relate to bringing the assets acquired from the administrator of Jebron Ltd back into production and integrating into 
equipment into Exidor.
Goodwill impairment as a consequence of withdrawal from door handle production at Exidor (see note 14).
Severance costs and restructuring costs relate to redundancies and other costs incurred in reorganising the business in response to the recession.
Inventory write down relates to the cost of stock disposal, at a significant discount, on exit from a business stream within the Engineering Division. 58
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
13 Property, plant and equipment
 Land and Plant and Motor
 buildings machinery vehicles Total
Group £000 £000 £000 £000
Cost
At 1 April 2009 5,175 24,561 661 30,397
Additions 59 410 54 523
Disposals — — (137) (137)
At 31 March 2010 5,234 24,971 578 30,783
Additions 49 801 176 1,026
Disposals — (103) (112) (215)
At 31 March 2011 5,283 25,669 642 31,594
Depreciation
At 1 April 2009 1,434 19,597 398 21,429
Charge for year 118 907 104 1,129
Disposals — — (94) (94)
At 31 March 2010 1,552 20,504 408 22,464
Charge for year 115 887 99 1,101
Disposals — (40) (101) (141)
At 31 March 2011 1,667 21,351 406 23,424
Net book value
At 31 March 2011 3,616 4,318 236 8,170
At 31 March 2010 3,682 4,467 170 8,319
At 31 March 2009 3,741 4,964 263 8,968
Net book value of land and buildings comprises:
 2011 2010
 £000 £000
Freehold 3,597 3,663
Short leasehold (leasehold improvements) 19 19
 3,616 3,682
 Land and Plant and Motor
 buildings machinery vehicles Total
Company £000 £000 £000 £000
Cost
At 1 April 2009 1,670 46 93 1,809
Additions — 1 18 19
Disposals — — (40) (40)
At 31 March 2010 1,670 47 71 1,788
Additions — 7 56 63
Disposals — — (17) (17)
At 31 March 2011 1,670 54 110 1,834
Notes to the Accounts continued
  59
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
13 Property, plant and equipment continued
 Land and Plant and Motor
 buildings machinery vehicles Total
Company £000 £000 £000 £000
Depreciation
At 1 April 2009 679 14 37 730
Charge for year 27 6 18 51
Disposals — — (25) (25)
At 31 March 2010 706 20 30 756
Charge for year 27 6 17 50
Disposals — — (10) (10)
At 31 March 2011 733 26 37 796
Net book value
At 31 March 2011 937 28 73 1,038
At 31 March 2010 964 27 41 1,032
At 31 March 2009 991 32 56 1,079
 Group Company
 £000 £000
Freehold land included above not subject to depreciation amounted to:
2011 743 743
2010 743 743
14 Intangible assets
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Goodwill — 201 — —
Software 379 251 3 —
Development costs 115 198 — —
 494 650 3 — 60
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
14 Intangible assets continued
Goodwill £000
Cost
At 1 April 2009 201
Additions —
At 31 March 2010 201
Additions —
At 31 March 2011 201
Impairment
At 1 April 2009, 31 March 2010 —
Charge for year 201
At 31 March 2011 201
Net book value
At 31 March 2011 —
At 31 March 2010 201
At 31 March 2009 201
Goodwill arose initially on the acquisition of the Webb Lloyd business which now forms part of Exidor Limited, within the Engineering Segment.
The Directors have concluded that Webb Lloyd is no longer a core element of the Exidor product offering, and that in order to facilitate the full 
integration of the Jebron assets, they plan to exit from this part of the business.
As a consequence the associated goodwill has been fully impaired.
 Group Company
Software £000 £000
Cost
At 1 April 2009 560 13
Additions 87 —
At 31 March 2010 647 13
Additions 191 3
At 31 March 2011 838 16
Amortisation/impairment
At 1 April 2009 352 10
Charge for the year 44 3
At 31 March 2010 396 13
Charge for year 63 —
At 31 March 2011 459 13
Net book value
At 31 March 2011 379 3
At 31 March 2010 251 —
At 31 March 2009 208 3
Notes to the Accounts continued
  61
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
14 Intangible assets continued
Software has an estimated useful life of between 3 and 10 years.
 Group Company
Development costs capitalised £000 £000
Cost
At 1 April 2009 413 —
Additions — —
At 31 March 2010 413 —
Additions — —
At 31 March 2011 413 —
Amortisation/impairment
At 1 April 2009 132 —
Charge for year 83 —
At 31 March 2010 215 —
Charge for year 83 —
At 31 March 2011 298 —
Net book value
At 31 March 2011 115 —
At 31 March 2010 198 —
At 31 March 2009 281 —
Development costs capitalised relate to specific major projects which result in an asset being created which is then  amortised over the primary 
income generating period of the associated product. For the above items this has been estimated at 5 years from the commencement of 
commercial sales.
15 Inventories
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Raw materials 1,113 966 — —
Work in progress 1,296 1,508 — —
Finished goods 560 820 — —
 2,969 3,294 — — 62
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
16 Trade and other receivables
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Trade receivables 9,207 6,013 — —
Amounts due from subsidiary undertakings — — 7,898 8,605
Other receivables 125 60 121 31
Prepayments 256 285 29 88
 9,588 6,358 8,048 8,724
Trade receivables are denominated in the following currencies:
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Sterling 7,845 5,085 — —
Euro 1,362 928 — —
 9,207 6,013 — —
Out of the carrying amount of trade receivables of £9,207,000 (2010: £6,013,000), £2,145,000 (2010: £1,185,000) is against five major customers.
Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days and are shown net of a provision for impairment. As at 
31 March 2011 trade receivables at a nominal value of £252,000 (2010: £243,000) were impaired and fully provided for. Movements in the 
provision for impairment of receivables were as follows:
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
At 1 April 243 238 — —
Charge for year 181 87 — —
Amounts written off (172) (82) — —
At 31 March 252 243 — —
Notes to the Accounts continued
  63
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
16 Trade and other receivables continued
As at 31 March 2011, the analysis of trade receivables that were past due but not impaired is as follows:
 Neither past
 due nor Past due but not impaired
 Total impaired <30 days 30–60 days 60–90 days 90–120 days > 120 days
 £000 £000 £000 £000 £000 £000 £000
2011 9,207 6,842 1,922 326 94 23 —
2010 6,013 4,118 1,514 210 69 102 —
The credit quality of trade receivables that are neither past due nor impaired is assessed by reference to external credit ratings, where available, 
otherwise historical information relating to the counterparty default rates is used.
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Debtors where external credit ratings have been sought 5,911 3,808 — —
Debtors where internal credit assessments have been made 3,296 2,205 — —
 9,207 6,013 — —
Of the balance in respect of counterparties with internal ratings nil% (2010: nil%) is in respect of new customers, and 100% (2010: 100%) existing 
customers with no history of defaults.
Amounts due from subsidiary companies are interest free and repayable on demand.
Income taxes receivable
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
UK corporation tax — — 14 — 64
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
17 Current liabilities
 Group Company
 2011 2010 2011 2010
Financial liabilities £000 £000 £000 £000
Bank overdraft 2,881 3,449 4,224 4,556
 The overdraft is held with HSBC Bank plc as part of the Group facility of £5,000,000, is secured on the assets of the business, is repayable on 
demand and is renewable in June 2012. Interest is payable at 2.75% (2010: 2.75%) over base rate.
 Group Company
 2011 2010 2011 2010
Trade and other payables £000 £000 £000 £000
Trade creditors 6,185 3,942 — —
Amounts due to subsidiary undertakings — — 1,942 1,942
Other taxation and social security 749 507 22 19
Other creditors 405 379 2 20
Accruals 1,377 874 533 236
Fair value of derivative forward contracts 236 29 — —
 8,952 5,731 2,499 2,217
Trade payables are non-interest bearing and are normally on terms of 30 to 60 days.
Amounts due to subsidiary companies are interest free and repayable by agreement with the Parent Company.
 Reorganisation Dilapidations Total
Provisions £000 £000 £000
As at 31 March 2009 — 48 48
New provisions — 48 48
Utilised — (48) (48)
As at 31 March 2010 — 48 48
New provisions 85 — 85
Utilised — (48) (48)
As at 31 March 2011 85 — 85
Reorganisation
Provision in respect of integrating the assets acquired from the administrators of Jebron Ltd into Exidor expected utilisation  by March 2012.
Dilapidations
Provision in respect of dilapidations on leasehold property was fully utilised during the year.
Notes to the Accounts continued
  65
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
18 Non current liabilities
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Intra-group balances — — 66 66
The amount owed by the Company to non-trading subsidiary undertakings is non-interest bearing.
 Group Company
 2011 2010 2011 2010
Provisions for liabilities £000 £000 £000 £000
Deferred taxation 85 92 34 38
 2011 2010
 Amount not Amount Amount not Amount
 provided provided provided provided
Deferred tax liabilities £000 £000 £000 £000
Group liabilities
Temporary differences relating to capital allowances — — — —
Capital gains rolled over — 85 — 92
 — 85 — 92
 2011 2010
 Amount not Amount Amount not Amount
 provided provided provided provided
Company liabilities £000 £000 £000 £000
Temporary differences relating to capital allowances — 34 — 38
 — 34 — 38
 Group Company
 2011 2010 2011 2010
Deferred tax assets £000 £000 £000 £000
Temporary differences relating to capital allowances 35 76 — —
Temporary differences relating to pension scheme deficit 572 662 572 662
Temporary differences relating to fair value hedges 65 — — —
Other temporary differences 91 185 24 36
 763 923 596 698
Other temporary differences include a deferred tax asset of £nil (2010: £139,000), recognised in respect of carried forward trading losses. A 
deferred tax asset is recognised in respect of tax losses carried forward only to the extent that there is a reasonable expectation that the losses will 
be recoverable within the foreseeable future. Group tax losses not carried forward for which a deferred tax asset has not been recognised total 
£177,000 (2010: £188,000). 66
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
18 Non-current liabilities continued
Deferred taxation Group Company
 2011 2010 2011 2010
Movement in net deferred taxation during the year £000 £000 £000 £000
Net asset brought forward (831) (469) (660) (538)
Re pension provision movement 46 (151) 46 (151)
Movement on other temporary differences 125 (211) 8 29
Movement on change in corporation tax rate 47 — 43 —
 (613) (831) (563) (660)
19 Share capital
 2011 2010
 £000 £000
Allotted, called up and fully paid
7,437,658 (2010: 7,437,658) Ordinary shares of 25p 1,859 1,859
During the year no shares (2010: nil) were issued to satisfy the exercise of options under the executive share option scheme.
277,459 share options lapsed (2010: 48,000).
No options were granted (2010: 1,487,531) and no options were surrendered (2010: 862,958).
20 Share-based payments
The Company has three share option schemes used to incentivise the Directors of the Group and certain subsidiary Company Directors as follows:
i) Performance Share Plan which prior to 19 December 2008 granted nil cost options under an Enterprise Management Incentive Scheme. 
These will normally vest in 3 equal tranches on the third, fourth and fifth anniversary of grant subject to satisfaction of performance 
conditions set by the Remuneration Committee of the Company. These options expire on the tenth anniversary of grant. PSP option grants 
made after 19 December 2008 were not made under EMI scheme, and vest 3 years from grant and expire after a further year.
ii) Share Option Scheme where options are exercisable at the average quoted market price of the Company’s shares over the three months 
prior to the date of grant. These will normally vest on the third anniversary of grant subject to satisfaction of performance conditions set by 
the Remuneration Committee of the Company and set out in the Remuneration committee report on pages 30 to 33.
 These options expire on the tenth anniversary of grant.
iii) A Phantom share option plan, which issues cash settled options to certain key managers within the business. The options will normally 
become exercisable in February 2013 subject to the satisfaction of performance conditions set by the Remuneration Committee of the 
Company. Cash payments are made in three equal instalments in April of 2013, 2014 and 2015.
Under all of the above, options lapse if the employee leaves the Group subject to certain exceptions set out in the scheme rules.
Due to the small number of individual grants made, each individual option is priced using the Black–Scholes pricing model, rather than applying 
the model to weighted average figures for options granted in each year.
Notes to the Accounts continued
  67
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
20 Share based payments continued
Relevant options outstanding during the year were as follows:
  Weighted average
   Remaining 
 No. of Exercise contractual 
 options price life (years)
At 31 March 2009 1,356,481 112.0p 7.6
Granted 1,487,531 52.8 9.9
Surrendered (862,958) 176 7.0
Lapsed (48,000) — 4.0
At 31 March 2010 1,933,054 41 8.6
Lapsed (277,459) — 4.4
At 31 March 2011 1,655,595 44.4 7.4
Based on the following assumptions at 31 March 2011, the total fair value of options was £385,000, of which £73,000 was charged to the income 
statement (2010: charge of £28,000). The fair value of options granted in the year was £nil (2010: £190,000). The exercise price of options range 
from nil p to 52.8p.
The key assumptions in relation to the valuation of all schemes are:
 2011 2010
Share price 104.5p 64.5p
Expected volatility 30.0% 30.0%
Expected life 4.0 years 4.0 years
Risk free rate 3.0% 3.0%
Expected dividend yield 2.3% 2.3%
Expected volatility, to which the fair value is most sensitive, is based on movements in the share price during the year and taking account of the 
Directors’ expectations of future movements. The expected life has been arrived at based on the Directors’ best estimate taking into account 
exercise conditions and behavioural considerations.
The mid-market price of the shares ranged between 54.5p and 130.0p during the year to 31 March 2011.
21 Fixed asset investments
 £000
Shares in subsidiary undertakings
Cost at 1 April 2010 8,159
Addition —
Cost at 1 April 2011 8,159
Wholly owned operating 
subsidiaries Principal activity
Exidor Ltd 
(formerly Fred Duncombe Ltd) Manufacture and sale of architectural hardware
Petrel Ltd Manufacture and sale of lighting, switchgear and electrical installation products
Russell Ductile Castings Ltd Manufacture and sale of engineering castings
Chamberlin & Hill Castings Limited Manufacture and sale of engineering castings
The Company owns 100% of the issued ordinary share capital of the above companies, all of whom operate principally in England and Wales. 68
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Notes to the Accounts continued
 
22 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 operating cost for all of the Group schemes 
for 2011 was £284,000 (2010: £308,000) plus £75,000 of financing cost (2010: £239,000).
The pension cost for the defined benefit scheme, providing benefits based on final salary has been projected forward, updated each 6 months by 
an independent qualified actuary, from the results of an actuarial valuation carried out as at 1 April 2010 using the projected unit method. The 
market value of the schemes total assets on that date was £12,400,000 and the value of these assets represented 82% of the benefits that had 
accrued to members allowing for expected future increases in salaries (which from 1 April 2002 have been limited to inflation).
The other schemes within the Group are defined contribution schemes and the pension cost represents contributions payable. The total cost of 
defined contributions schemes was £284,000 (2010: £308,000). The notes below relate to the defined benefit scheme.
The service cost has been calculated using the Projected Unit method. The major assumptions used by the actuary were (in nominal terms):
 At At At
 31 March 31 March 31 March
 2011 2010 2009
Rate of increase in salaries n/a n/a n/a
Rate of increase of pensions in payment – post 1997 accrual only 3.4% 3.4% 3.1%
Discount rate 5.5% 5.6% 7.0%
Inflation assumption 3.4% 3.4% 3.1%
Demographic assumptions are all based on the S1NA mc mortality tables with a 1% annual increase. The post retirement mortality assumptions 
allow for expected increases in longevity. The current disclosures relate to assumptions based on longevity in years following retirement as of the 
balance sheet date, with future pensioners relating to an employee retiring in 2032.
  2011 2010
  Years Years
Current pensioners at 65 — male 20.3 20.3
 — female 23.1 23.1
Future pensioners at 65 — male 21.7 21.2
 — female 24.5 24.0
The scheme was closed to future accrual with effect from 30 November 2007, after which the Company’s regular contribution rate reduced to 
zero (previously the rate had been 9.1% of members’ pensionable salaries). In addition the past service “catch up” contribution have been 
renegotiated with the Trustees and with effect from 1 April 2011 will increase to £25,667 per month (previously £21,475 per month) designed to 
return the scheme to a fully funded position by April 2020. The contributions expected to be paid during the year to 31 March 2012 are £308,000.
The scheme assets are stated at the market values at the respective balance sheet dates and overall expected rates of return are established by 
applying published brokers forecasts for each category of scheme asset. The rates quoted below are the expected net rates of return after 
allowance for expenses. 69
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
22 Pension arrangements continued
The assets and liabilities of the scheme and the expected rates of return were:
 As at 31 March 2011 As at 31 March 2010
 Rate of  Rate of
 return Value return Value
 % £000 % £000
Equities/diversified growth fund 7.85 6,782 8.05 6,964
Gilts 4.35 2,022 4.55 1,906
Bonds 5.50 2,514 5.55 2,388
Property 7.35 1,024 7.55 974
Cash 0.50 90  143
Market value of assets  12,432  12,375
Actuarial value of liability  (14,634)  (14,741)
Recoverable deficit in scheme  (2,202)  (2,366)
Related deferred tax asset  572  662
Net pension liability  (1,630)  (1,704)
 Year to Year to
 31 March 31 March
 2011 2010
Recognised as finance cost £000 £000
Expected return on pension scheme assets 722 552
Interest on pension liabilities (797) (791)
Net return disclosed in finance cost (75) (239)
 Year to Year to
 31 March 31 March
 2011 2010
Analysis of amount recognised in Consolidated Statement of other Comprehensive Income £000 £000
Actual return less expected return on assets (185) 2,423
Other actuarial gain/(loss) on liabilities 126 (2,995)
Actuarial loss recognised in the Statement of other Comprehensive Income (59) (572)
Cumulative actuarial losses recognised in the Statement of other Comprehensive Income (796) (737)
The cumulative amount of actuarial gains and losses recognised since 1 January 2004 in the Group statement of other comprehensive income is 
£(796,000) (2010: £(737,000). The Directors are unable to determine how much of the pension scheme deficit recognised on transition to IFRSs, 
and taken directly to equity of £2,136,000 in the Group, is attributable to actuarial gains and losses since inception of those pension schemes. 
Consequently, the Directors are unable to determine the amount of actuarial gains and losses that would have been recognised in the Group 
statement of other comprehensive income before 1 January 2004. 70
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
Notes to the Accounts continued
 
22 Pension arrangements continued
 Year to Year to
 31 March 31 March
 2011 2010
 £000 £000
Actual gain on plan assets 537 2,990
 Year to Year to
 31 March 31 March
 2011 2010
Movement in deficit during the year £000 £000
Deficit in scheme at beginning of year (2,366) (1,828)
Movement in year:
Regular contributions 298 273
Net expected return on assets (75) (239)
Actuarial loss (59) (572)
Deficit in scheme at end of year (2,202) (2,366)
 Year to Year to
 31 March 31 March
 2011 2010
Movement in scheme assets £000 £000
Fair value at beginning of year 12,375 9,817
Expected return on scheme assets 722 552
Actuarial (losses)/gains (185) 2,423
Employer contributions 298 273
Benefits paid (778) (690)
Fair value at end of year 12,432 12,375
 Year to Year to
 31 March 31 March
 2011 2010
Movement in scheme liabilities £000 £000
Benefit obligation at start of year 14,741 11,645
Interest cost 797 791
Actuarial (gain)/loss (126) 2,995
Benefits paid (778) (690)
Benefit obligation at end of year 14,634 14,741 71
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
20453-04  15/06/2011 Proof 7
22 Pension arrangements continued
  Year to Year to Year to Year to Year to
  31 March 31 March 31 March 31 March 31 March
Experience gains and losses  2011 2010 2009 2008 2007
Difference between expected and actual return £000 (185) 2,423 (3,118) (1,856) (38)
on scheme assets % of assets (1.5)% 19.6% (31.8)% (14.6)% (0.3)%
Experience gains on scheme liabilities £000 100 — — 600 —
 % of liabilities 1.0% 0.0% 0.0% 4.3% —
Other gains/(losses) on scheme liabilities £000 (126) 2,995 2,136 1,985 (2,094)
 % of liabilities (0.9)% 20.3% 18.3% 14.4% 12.9%
Net (losses)/gains £000 (59) (572) (982) 729 (2,132)
 % of liabilities (0.4)% (3.9)% (8.4)% 5.3% 13.2%
23 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 2011 amounted to £nil (2010: £nil).
The German tax authorities have raised a query relating to the application of VAT in respect of sales to a German customer dating back to 2002. In 
the event that the VAT treatment is deemed to be incorrect interest and penalties could be applied by the German tax authorities. Discussions are 
at a very early stage and the financial impact, if any, cannot currently be quantified.
24 Financial commitments
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Capital expenditure
Contracted for but not provided in the accounts 40 — 40 —
Lease commitments
The Group had total outstanding commitments under operating leases as follows:
 Group
 2011 2010
 £000 £000
Future minimum payments due:
Not later than one year 331 331
After one year but not more than five years 1,324 1,324
After five years 511 842
 2,166 2,497
Leases on land and buildings comprise the lease for the Leicester foundry (£271,000 per annum with an end date, subject to earlier termination, of 
31 March 2017), and a lease within the Engineering Division for £60,000 terminating in August 2019.
The lease on the Leicester foundry is terminable by the Company only on 12 months notice. 72
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Notes to the Accounts continued
 
25 Derivatives and financial instruments
The Group considers the use of derivatives to reduce financial risk in a number of areas noted below.
The only area where the use of derivatives is considered appropriate at present is that of currency risk.
Currency risk
The Group’s functional currency is sterling but approximately 20% of revenues are denominated in foreign currencies,  principally Euros in relation 
to castings exports. In order to reduce the Group’s exposure to currency fluctuations  the Group sells approximately 80% of its expected Euro 
revenues on forward currency contracts of 12 months or less. At the year end it had net monetary assets denominated in Euros of £1,471,599 
(2010: £818,000 assets). If these contracts were not in place and the Euro/Sterling exchange rate moved by plus or minus 5% the corresponding 
gain/loss would be £78,000 (2010: £39,000).
At 31 March 2011, the Group held forward currency hedging contracts designated as hedges of expected future Euro exports for highly probable 
forecast sales transactions. The forward currency contracts are being used to hedge the foreign currency risk of highly probable forecast sales over 
the next year.
The terms of the forward currency hedging contracts have been negotiated to match the terms of the commitments and the cash flow hedges of 
expected future sales were assessed to be highly effective.
Forward currency contracts for the sale of Euros outstanding at the year end have been recorded at fair value with the difference being recognised 
directly in equity through the statement of comprehensive income. If these contacts were  not in place and the Euro/Sterling exchange rate moved 
by plus or minus 5% the corresponding gain/loss to equity would be £260,000 (2010: nil)
  Weighted  Fair value at
 Contracted average Contracted year end Unrealised
 amount contract amount rate loss
 (Euros ‘000) rate £000 £000 £000
At 31 March 2011 7,900 1.1779 6,707 6,441 (266)
At 31 March 2010 6,000 1.126 5,330 5,359 (29)
Interest rate risk
The Group operates an overdraft facility with HSBC Bank plc and has no other borrowings. Exposure to interest rate risk is considered to be low 
and no derivatives are used to modify the Group’s interest rate risk profile.
The impact of a 50 basis point increase in UK interest rates would be a £17,000 reduction in profit before tax (2010: £20,000). An equivalent 
decrease in rates would increase profit before tax by £17,000 (2010: £20,000).
An analysis of interest bearing financial assets and liabilities is given below.
 Group Company
 2011 2010 2011 2010
Cash and cash equivalents/(bank overdraft) £000 £000 £000 £000
Bank overdraft (Sterling denominated) (2,795) (3,232) (4,224) (4,556)
Bank overdraft (Euro denominated) (86) (217) — —
 (2,881) (3,449) (4,224) (4,556)
Balances outstanding on the Group’s overdraft facility are subject to floating rate interest and are repayable on demand.
Credit risk
The Group trades only with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are 
subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s 
exposure to bad debts is not significant. The maximum exposure is the carrying amount as disclosed in note 16. For transactions that do not 
occur in the UK, the Group does not offer credit terms without the approval of the operating business Finance Director. There are no significant 
concentrations of credit risk within the Group. 73
Introduction Performance Governance Financial Statements
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25 Derivatives and financial instruments continued
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, the Group’s exposure to 
credit risk arises from default of the counterparty, with the maximum exposure equal to the carrying amount of the instrument.
There are no material differences between the fair values and carrying values of the financial assets and liabilities.
The bad debt charge for the year was £215,000 (2010: £135,000).
Liquidity risk
The Group aims to mitigate liquidity risk by managing the cash generation of its operating units, and applying cash generation targets across the 
Group. Investment is carefully controlled, with authorisation limits operating up to Group Board level and cash payback periods applied as part of 
the investment appraisal process. In this way the Group aims to maintain a good credit rating and operate within its existing facilities.
The Group’s funding strategy is to maintain flexibility in managing its day to day working capital needs through the use of an overdraft facility, and 
to fund acquisitions and significant capital projects through the use of longer term funding including bank loans and equity.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2:  other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or 
indirectly: and
Level 3: techniques which use inputs have a significant effect on the recorded fair value that are not based on observable market data
All derivative assets and liabilities are valued by level 1 techniques.
The table below summarises the maturity profile of the Group’s financial liabilities at 31 March 2011 and 31 March 2010.
  Less than 3 to 12
Non-derivative financial liabilities On demand 3 months months Total
At 31 March 2011
Bank overdraft 2,881 — — 2,881
Trade and other payables — 6,185 — 6,185
 2,881 6,185 — 9,066
At 31 March 2010
Bank overdraft 3,449 — — 3,449
Trade and other payables — 3,942 — 3,942
 3,449 3,942  7,391
The gross undiscounted future cash flows are analysed as follows:
  Less than 3 to 12
Derivative financial liabilities On demand 3 months months Total
At 31 March 2011
Foreign Exchange forward contracts — 1,286 5,421 6,707
 — 1,286 5,421 6,707
At 31 March 2010
Foreign Exchange forward contracts — 1,332 3,998 5,330
 — 1,332 3,998 5,330 74
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Notes to the Accounts continued
 
25 Derivatives and financial instruments continued
Capital management
The Group defines capital as the total equity of the Group. The Group objective for managing capital is to deliver competitive, secure and  
sustainable returns to maximizes long-term shareholder value. Chamberlin is not subject to any externally-imposed capital requirements.
The Group monitors capital on the basis of the gearing ratio, that is, the ratio of net debt to equity. Net debt is calculated as gross  finance debt, as 
shown in the balance sheet, less cash and cash equivalents. All components of equity are included in the denominator of the calculation. The 
Directors believe that a net debt ratio in the range 30-50% provides an efficient capital structure and an appropriate level of financial flexibility.  
At 31 March 2011 the net debt ratio was 37% (2010: 44%).
26 Related party transactions
Group
All transactions between the Parent Company and subsidiary companies and between subsidiaries companies have been eliminated on 
preparation of the consolidated accounts. The Group has not entered into any other related party transactions.
Company
The Company provides certain management services to subsidiary companies.
Certain payments in relation to items settled or provided on a central basis, principally corporation tax and insurance payments, are made by the 
Company and are then recharged to subsidiaries at cost.
Compensation of key management personnel (including Directors)
 Group Company
 2011 2010 2011 2010
 £000 £000 £000 £000
Short term employee benefits 1,321 1,259 728 677
Share based payments 73 28 73 28
Pension contributions 69 70 32 32
 1,463 1,357 833 737
Key management, other than Directors of the Company, comprise the Managing Directors and Finance Directors of the main operating 
subsidiaries. 75
Introduction Performance Governance Financial Statements
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Annual Report and Accounts for the year ended 31 March 2011
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Notice is hereby given that the Annual General Meeting of the Company will be held on Thursday 14 July 2011 at the Registered Office, Chuckery Road, 
Walsall at 2.00 p.m. for the following purposes.
Ordinary resolutions
1. To receive and adopt the Report of the Directors, Statement of Accounts and Report of the Auditors for the year ended 31 March 2011.
  (Resolution 1)
2. To declare a Final Dividend for the year ended 31 March 2011 of 1.0p paid to members whose names were on the register of 
members at the close of business on 1 July 2011.  (Resolution 2)
3. To re-elect as a Director Tom Brown.  
  (Resolution 3)
4. To re-elect as a Director Tim Hair.  
  (Resolution 4)
5. To re-elect as a Director Mark Bache. 
  (Resolution 5)
6. To re-elect as a Director Keith Jackson.  
  (Resolution 6)
7. To re-elect as a Director Alan Howarth.  
  (Resolution 7)
8. To approve the Directors’ Remuneration Report for the year ended 31 March 2011.  
  (Resolution 8)
9. To reappoint Ernst & Young LLP as Auditors of the Company and to authorise the Directors to fix the remuneration of the Auditors.
  (Resolution 9)
10. That the Directors be and are hereby generally and unconditionally authorised in accordance with Section 551 of the Companies Act 2006 (in 
substitution for all existing authorities under section 551 of the Companies Act 2006 which, to the extent unused at the date of this resolution, are 
revoked with immediate effect) to exercise all the powers of the Company to allot shares in the Company or to grant rights to subscribe for or to 
convert any security into shares in the Company up to an aggregate nominal amount of £619,805 provided that (unless previously revoked, varied or 
renewed) such authority shall expire at the earlier of the conclusion of the next Annual General Meeting of the Company or 29 October 2012, but so 
that this authority shall allow the Company to make, before the expiry of this authority, offers or agreements which would or might require shares to 
be allotted or rights to subscribe for or to convert any security into shares to be granted after such expiry and notwithstanding such expiry the 
Directors may allot shares or grant such rights in pursuance to such offers or agreements as if this authority had not expired.
 (Resolution 10)
Special resolutions
11. That, subject to the passing of resolution 10 and pursuant to section 570 of the Companies Act 2006 the Directors be and are hereby generally 
empowered (in substitution for all existing powers under section 570 of the Companies Act 2006 which, to the extent unused at the date of this 
resolution, are revoked with immediate effect) to allot equity securities (as defined in Section 560 of the Companies Act 2006) for cash pursuant to 
the authority granted by resolution 10 as if Section 561(1) of the Companies Act 2006 did not apply to such allotment, provided that this power 
shall be limited to the allotment of equity securities:
(a) in connection with an offer of equity securities (whether by way of a rights issue, open offer or otherwise):
(i) to holders of ordinary shares in the capital of the Company in proportion (as nearly as practicable) to the respective numbers of ordinary 
shares held by them; and
(ii) to holders of other equity securities in the capital of the Company, as required by the rights of those securities or, subject to such rights, as 
the Directors otherwise consider necessary,
 but subject to such exclusions or other arrangements as the Directors may deem necessary or expedient in relation to treasury shares, fractional 
entitlements, record dates or any legal or practical problems under the laws of any territory or the requirements of any regulatory body or stock 
exchange; and
(b) otherwise than pursuant to paragraph (a) of this resolution, up to an aggregate nominal amount of £92,971
Notice of Annual General Meeting
  76
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 and (unless previously revoked, varied or renewed) this power shall expire at the earlier of the conclusion of the next Annual General Meeting, of the 
Company or 29 October 2011, but so that this authority shall allow the Company to make, before the expiry of this authority, offers or agreements 
which would or might require shares to be allotted or rights to subscribe for or to convert any security into shares to be granted after such expiry 
and notwithstanding such expiry the Directors may allot shares or grant such rights in pursuance of such offers or agreements as if this authority had 
not expired.
  (Resolution 11)
12. That the Company be and hereby is generally and unconditionally authorised pursuant to section 701 of the Companies Act 2006 to make market 
purchases (within the meaning of section 693(4) of the Companies Act 2006) of Ordinary Shares of 25p each in the capital of the Company 
(“Ordinary Shares”) on such terms and in such manner as the Directors may from time to time determine provided that:
(a) the maximum number of Ordinary Shares which may be purchased is 743,700;
(b) the minimum price (exclusive of expenses) which may be paid for each Ordinary Share is 25 pence;
(c) the maximum price which may be paid for each Ordinary Share is an amount equivalent to 105% of the average of the middle market quotations 
for an Ordinary Share as derived from the Daily Official List of the London Stock Exchange Plc for the five business days immediately preceding 
the day on which the Ordinary Share in question is purchased,
 and (unless previously revoked, varied or renewed) this authority shall expire at the earlier of the conclusion of the next Annual General Meeting of 
the Company or 29 October 2012, save that the Company may enter into a contract to purchase Shares before this authority expires under which 
such purchase will or may be completed or executed wholly or partly after this authority expires and may make a purchase of Shares pursuant to any 
such contract as if this authority had not expired.
 (Resolution 12)
By order of the Board
Mark Bache Chuckery Road
Company Secretary Walsall
23 May 2011 WS1 2DU
Notice of Annual General Meeting continued
  77
Introduction Performance Governance Financial Statements
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Annual Report and Accounts for the year ended 31 March 2011
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General Information
A member is entitled to appoint another person (whether a member or not) as his or her proxy to exercise all or any of his or her rights to attend and to 
speak and vote at the Meeting 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 2.00 p.m. on 12 July 2011 (or if the Meeting is adjourned, not later than 
48 hours (excluding any part of a day that is not a working day) before the time of the adjourned 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. A member 
may appoint more than one proxy in relation to the Meeting provided that each proxy is appointed to exercise the rights attached to a different share or 
shares held by the member. A member wishing to appoint more than one proxy should photocopy the proxy card and indicate on each copy the name 
of the proxy he appoints and the number of shares in respect of which that proxy is appointed. A failure to specify the number of shares each proxy 
appointment relates to or specifying a number in excess of those held by the member may result in the proxy appointment being invalid.
In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that:
(a) if a corporate shareholder has appointed the Chairman of the Meeting as its corporate representative with instructions to vote on a poll in 
accordance with the directions of all of the other corporate representatives for that shareholder at the meeting, then on a poll those corporate 
representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as corporate representative in 
accordance with those directions; and
(b) if more than one corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder has not appointed 
the Chairman of the Meeting as its corporate representative, a designated corporate representative will be nominated, from those corporate 
representatives who attend, who will vote on a poll and the other corporate representatives will give voting directions to that designated corporate 
representative.
Corporate shareholders are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate 
representatives at www.icsa.org.uk for further details of this procedure. The guidance includes a sample form of representation letter if the Chairman is 
being appointed as described in (a) above.
There will be available for inspection at the Registered Office of the Company during normal business hours (Weekends and Public Holidays excepted) 
from the date of this notice until the conclusion of the Annual General Meeting copies of contracts of service of Directors (including letters of 
appointment of non-executive Directors) with the Company or with any of its subsidiary undertakings.
Biographical details of all Directors who are offering themselves for re-election at the meeting are set out on page 20 of the enclosed annual report and 
accounts.
An explanation of Resolutions 10, 11 and 12 is set out in the Report of the Directors on pages 21 to 26.
Members should notify the Registrars without delay of any change of address. 78
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Stock code: CMH
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Shareholder Notes 79
Introduction Performance Governance Financial Statements
Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
Stock code: CMH
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Chamberlin plc
Annual Report and Accounts for the year ended 31 March 2011
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Shareholder Information
Advisers
Company Secretary
Mark Bache
Registered Office
Chuckery Road,
Walsall WS1 2DU
Registered in England No. 76928
Auditors
Ernst & Young LLP ,
Birmingham
Solicitors
DLA Piper,
Birmingham
Stockbrokers
Charles Stanley Securities,
London
Financial PR
Biddicks,
London
Bankers
HSBC Bank plc,
Birmingham
Registrars
Neville Registrars Limited,
Neville House,
18 Laurel Lane,
Halesowen,
West Midlands B63 3DA 20453-04  14/06/2011 Proof 6 20453-04  14/06/2011 Proof 6
Small complex grey iron castings, principally for the  
automotive sector and hydraulic applications.
Emergency exit equipment and traditional architectural  
hardware directed mainly at the DIY and construction  
markets.
Products associated with cable management. Lighting  
and switchgear associated with petrochemicals and  
construction applications.
Large grey, ductile and alloyed iron castings for a range of applications 
including power generation, bearing housings, steelworks, construction 
and compressors.
CHAMBERLIN & HILL CASTINGS LTD
Chuckery Road
Walsall, WS1 2DU
Tel: 01922 721411
Fax: 01922 614610
Bonchurch Street
Leicester, LE3 5EP
Tel: 0116 2992000
Fax: 0116 2998844
www.chcastings.co.uk
EXIDOR LTD
Progress Drive
Cannock, WS11 0JE
Tel: 01543 460030
Fax: 01543 573534
www.fredduncombe.co.uk
PETREL LTD
22 Fortnum Close
Kitts Green
Birmingham, B33 0LB
Tel: 0121 783 7161
Fax: 0121 783 5717
www.petrel-ex.co.uk
RUSSELL DUCTILE CASTINGS LTD
Trent Foundry
Dawes Lane
Scunthorpe, DN15 6UW
Tel: 01724 862152
Fax: 01724 280461
www.russellcastings.co.uk
The Board believes that success in the foundry and engineering sector is achieved  
by businesses that operate in the most demanding area of their technology and provide 
an outstanding service to their customers – difficult things done well. Our existing 
activities meet these criteria and we will continue to invest in them and to seek 
acquisition opportunities that fit this model.   20453-04  14/06/2011 Proof 6 20453-04  14/06/2011 Proof 6
Annual Report and Accounts  
for the year ended 31 March 2011
Stock code: CMH
Annual Report and Accounts for the year ended 31 March 2011 Chamberlin plc
Chuckery Road, Walsall, West Midlands, WS1 2DU
Tel: 01922 707100 Fax: 01922 638370
website: www.chamberlin.co.uk
email: plc@chamberlin.co.uk
Difficult things done well