22531.04    18 June 2013 8:11 PM    Proof 6
Annual Report and Accounts  
for the year ended 31 March 2013
Stock code: CMH
difficult things done well
Annual Report and Accounts for the year ended 31 March 2013 chamberlin plc  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
Visit us online
For more information on Chamberlin Group 
operations please visit our website at
www.chamberlin.co.uk
difficult things done well
INVESTMENT 
PROPOSITION
Success in UK engineering has not been easy to 
achieve in recent years, but its requirements can be 
simply stated; winners must do difficult things and 
must do them well.
We define “difficult things” as activities with high engineering content delivering technically demanding 
products or processes. To take profitable advantage of them it is essential that a business is properly 
managed and performs well.
◗ ◗ Operating in markets with high  
barriers to entry protected by 
process know-how or market 
regulation
◗ ◗ Operating across diversified  
markets with sales driven by the  
global engineering economy –  
70% of sales are ultimately  
exported
◗ ◗ Growth opportunity in the  
turbocharger castings market  
benefiting from regulatory  
drivers and limited competition
◗ ◗ Strong, credible management  
team with a proven track record
◗ ◗ Significant capacity opportunity  
at modest investment costs
◗ ◗ Highly cash generative – positive  
operating cash flow for the last  
five years
◗ ◗ Strong balance sheet with  
low gearing
◗ ◗ Committed to a policy of  
progressive dividends
◗ ◗ Sustained Profitable Growth
For more information please see our case studies on pages 7 and 9. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
Introduction
*  figures are stated before Non–underlying items which 
represent ineffective hedge costs, exceptional items as 
disclosed in note 12, net financing costs on pension 
obligations, share-based payment costs and associated 
tax impact of these items.
KEY POINTS
INTRODUCTION
Highlights  02 
Chairman’s Statement  03 
Group at a Glance 04–11
PERFORMANCE
Chief Executive’s Review  14–17 
GOVERNANCE
Board of Directors 20 
Report of the Directors  21–25 
Corporate Governance  26–28 
Directors’ Remuneration Report  29–31 
Independent Auditors’ Report  32–33
FINANCIAL STATEMENTS
Consolidated Income Statement  36 
Consolidated Statement of  
Comprehensive Income  37 
Consolidated Balance Sheet  38 
Parent Company Balance Sheet 39 
Consolidated Cash Flow Statement  40 
Parent Company Cash Flow Statement  41 
Statement of Changes in Equity  42–43 
Notes to the Accounts  44–71 
Notice of Annual General Meeting  72–73 
Shareholder Information  74
Results impacted by softening trading 
conditions, especially in H2
Revenues of
£42.3m (2012: £45.5m)
Proposed final dividend of
2.0p
Board expects softer conditions to remain in H1 
but Group is well positioned as demand returns
Underlying operating profit* of
£1.3m (2012: £1.7m) 
Statutory operating profit of
£1.1m (2012: £1.6m)
Net borrowings reduced to
£0.98m (2012: £1.56m)  
lowest year-end position since FY07
Foundry Division (80% of Group sales) – revenues 
affected by slowdown in demand but continued 
investment and strong focus on new business 
development
Tim Hair, Chief Executive, to step down from his 
role in May 2014 after seven years – search for new 
Chief Executive commenced, date of departure to 
be coordinated with appointment of a successor, 
to ensure smooth transition
Engineering Division (20% of Group sales) – sales 
increased and growth initiatives in place
Underlying diluted earnings per share* of
13.4p (2012: 16.5p) 
Statutory diluted earnings per share of
9.6p (2012: 14.5p) 
Continued strong cash generation from operations 
£2.3m (2012: £2.4m) 
1 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
2
2013
2012
2011
2010
2009 00.0
(1,028)
2008 1,282
310
804
1,657
1,281
00.0 00.0 00.0 00.0 00.0 00.0 00.0
£1,281
UNDERLYING PROFIT BEFORE TAX (£000)
HIGHLIGHTS
2013
2012
2011
2010
2009 00.0
28.5
2008 40.0
39.9
39.8
45.5
42.3
£42.3m
REVENUE (£m)
2013
2012
2011
2010
2009 00.0
(1,421)
2008 1,282
(498)
333
1,430
859
00.0 00.0 00.0 00.0 00.0 00.0 00.0
£859
STATUTORY PROFIT BEFORE TAX (£000)
2013
2012
2011
2010
2009 00.0
0.0
2008 11.9
1.2
1.0
3.25
3.0
3.25p
DIVIDENDS PER SHARE  (pence)
2013
2012
2011
2010
2009 00.0
502
2008 828
693
1,791
2,430
2,260
£2,260
CASH GENERATED FROM OPERATIONS (£000)
2013
2012
2011
2010
2009 00.0
(13.1)
2008 15.1
2.1
6.1
16.5
14.0
00.0 00.0 00.0 00.0 00.0 00.0 00.0
14.0p
UNDERLYING DILUTED EARNINGS PER SHARE  (pence)
Visit us online
For more information on Chamberlin Group  
operations please visit our website at
www.chamberlin.co.uk
The Group’s financial position is healthy and cash flows are good and we view 
prospects for the business over the long term very positively.  22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
Introduction
3
CHAIRMAN’S STATEMENT
KEITH BUTLER-WHEELHOUSE
INTRODUCTION
Having joined Chamberlin on 1 March 2012, 
this report marks my first full year as Chairman. 
Over the financial year, the Group has contended 
with softening trading conditions in a number of 
sectors, especially in the second half of the financial 
year, which have adversely affected the Group’s 
results for the year as a whole. Nonetheless, the 
slowdown in demand has been managed effectively 
as possible by the team and as we reported in our 
half year results statement, we have also continued 
to invest in the business and make operational 
changes which will support Chamberlin’s growth 
prospects over the long term. In particular, we have 
refocused the way we approach our new business 
development, added new skills and expertise, and 
continued to seek improvements to operational 
processes and product profitability. 
“Our goals are to generate 
top line sales growth as well 
as continuous operational 
development to improve 
efficiency and maintain 
tight cost controls, and 
therefore drive the Group’s 
profitability.”
We are confident that Chamberlin is well placed 
to see out the near term challenges of the 
current economic cycle and notwithstanding the 
prevailing tough conditions, our focus remains on 
simultaneous achievement of top line sales growth 
and bottom line margin improvement.
RESULTS
Revenues for the year ended 31 March 2013 were 
down 7% to £42.3m (2012: £45.5m), with a slight 
softening of demand in the first half followed 
by a further slowdown in the second half of the 
financial year.
Underlying operating profit reduced to £1.3m 
(2012: £1.7m), with tight cost control limiting the 
impact of the revenue reduction. Gross margins 
decreased slightly to 19.2% (2012: 19.5%) however 
our internal calculation of variable contribution, 
which measures the margin achieved before fixed 
costs, shows continuing progression at 32.9% (2012: 
32.5%, 2011: 31.6%). The underlying profit before 
tax was £1.3m (2012 £1.7m) and diluted underlying 
earnings per share was 13.4p (2012: 16.5p).
The statutory results show statutory operating 
profit at £1.1m (2012: £1.6m), statutory profit 
before tax at £0.9m (2012: £1.4m) and diluted 
statutory earnings per share at 9.6p (2012: 14.5p). 
Chamberlin has a strong record of cash generation 
and working capital control and this remains 
evident in these results. Cash generation was only 
slightly down at £2.3m (2012: £2.4m) and once 
again was significantly above underlying operating 
profit, equating to 177% of operating profit. The 
strong cash generation enabled us to reduce net 
borrowing by 37% to £0.98m (2012: £1.56m), which 
is the lowest year-end position since March 2007.
We typically hold capital expenditure in line with 
depreciation. However, we are currently installing 
a new process in our Walsall foundry which will 
deliver attractive ongoing cost reductions. This 
investment will result in a one-off increase in 
capital expenditure in the new financial year to  
31 March 2014 but we also expect to see 
immediate cost benefits. 
Gearing reduced to 12% (2012: 17%) and 
Chamberlin continues to be financed by a £5.0m 
overdraft facility from HSBC.
DIVIDEND
Our strong balance sheet and reliable cash 
generation provides a good underpinning for the 
dividend and I am pleased to announce that the 
Directors are recommending the payment of a final 
dividend of 2.0p per share, to be paid on  
26 July 2013 to shareholders on the register at  
5 July 2013. This increases the total dividend for the 
year to 3.25p (2012: 3.0p).
THE BOARD
The Company announced today, after seven years 
as Chief Executive, Tim Hair has given notice that 
he will be stepping down from the Board and 
the Company next May 2014, or sooner, if an 
appropriate replacement is found before that date. 
The Board has commenced the search for Tim’s 
successor and the date of Tim’s departure will be 
coordinated with the appointment of the new 
Chief Executive to ensure a smooth transition. 
The recruitment of a new Finance Director is 
in its final stages and until the appointment is 
formalised, Ian Poole, Group Financial Controller, 
has assumed responsibility for the day-to-day 
running of the finance function.
STRATEGY & OUTLOOK
The modernisation of Chamberlin has created 
significant capacity in our businesses, especially 
in our foundry operations, which can be utilised 
with only modest amounts of expenditure. Our 
growth strategy is therefore focused on taking 
advantage of this opportunity, utilising our 
technical expertise and the changes we have 
made over the year to enhance new business 
development. Our goals are to generate top line 
sales growth as well as continuous operational 
development to improve efficiency and maintain 
tight cost controls, and therefore drive the Group’s 
profitability. The transition is still in its early stages, 
but I have been encouraged by initial progress.
Market conditions are weaker than a year ago and 
we expect the first half of the new financial year to 
be tough. Nonetheless, we believe that Chamberlin 
is in very good shape to make progress as the cycle 
improves, and we continue to invest in the business 
to support our long term commercial objectives. 
The Group’s financial position is healthy and cash 
flows are good and we view prospects for the 
business over the long term very positively. 
Keith Butler-Wheelhouse
Chairman
21 May 2013 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
4
GROUP AT A GLANCE
OUR BUSINESS
REVENUE BY BUSINESS
DIRECT EXPORTS
 Light castings 34%
 Medium castings 20%
 Heavy castings 25%
 Security/Safety 13%
 Hazardous Environments 8%
 Light castings 62%
 Medium castings 13%
 Heavy castings 6%
 Security/Safety 10%
 Hazardous Environments 9%
PRODUCT AREAS
Chamberlin operates across five locations in the 
UK. The Foundry Division specialises in technically 
demanding castings in complex shapes and in 
specialist metallurgies.
GLOBAL SALES
Engineering activity outside of the UK is a key  
driver of demand.
Work is allocated across its three foundry sites 
based on size and metallurgy as follows:
◗ ◗ Light castings based in Walsall produces 
castings up to 5kg in grey iron;
◗ ◗ Medium castings based in Leicester produce 
5kg to 100kg castings in a wide variety of iron 
alloys;
◗ ◗ 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.
Approximately 70% of output is ultimately 
exported. Direct exports account for 30% 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 40% of our output. Against this 
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. 
WORLDWIDE MARKETS 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
Introduction
5
MARKETS SERVED
  Passenger Car  
 Turbos  21%
  Commercial Diesel  
 Turbos 5%
  Commercial Diesel 5%
  Safety/Security 13%
  Construction  
 Equipment 15%
 Hydraulics 9%
  Hazardous  
 Environments 8%
  Mining &  
 Quarrying 6%
  Off Road Vehicles 5%
  Power Generation 5%
  Process 1%
  Other 7%
2
3
4
5
6
1
UK MANUFACTURING
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
Photograph: The Group supplies specialist lighting for hazardous and explosive environments 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
6
GROUP AT A GLANCE
OUR BUSINESS
FOUNDRY BUSINESS
The Foundries Division currently comprises 
Chamberlin & Hill Castings Ltd and Russell Ductile 
Castings Ltd.
CHAMBERLIN & HILL  
CASTINGS LTD
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 LTD
RDC is based in Scunthorpe and specialises in 
heavy castings for a wide variety of industries 
including power generation, oil & gas, steel and 
construction equipment. The majority of RDC 
customers are OEMs and the site is benefiting 
from the global demand for engineered products.
See case study on page 7 See case study on page 7
2013 HIGHLIGHTS
•	 Foundry sales down 10% in 2013.
•	 Profit impact limited to a £367,000 reduction by 
tight cost control. 
•	 Significant capacity can be utilised with only 
modest expenditure.
2013
2012
2011 33,082
37,354
2010 22,423
33,674 2013
2012
2011 1,335
2,076
2010 (488)
1,709
1,709
UNDERLYING OPERATING 
PROFIT (£000)
33,674
REVENUE (£000)
KEY PERFORMANCE INDICATORS
2013
2012
2011 4.0%
5.6%
2010 (2.2%)
5.1%
5.1%
RETURN ON SALES
2013
2012
2011 13.3%
21.3%
2010 (5.5%)
19.2%
19.2%
RETURN ON NET ASSETS
2013
2012
2011 4,349
6,106
2010 (1,654)
5,071
5,071
OPERATING PROFIT PER 
EMPLOYEE (£)
REVENUE BY BUSINESS
 Light castings 43%
 Medium castings 26%
 Heavy castings 31% 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
Introduction
7
Other major off-road vehicle manufacturers 
are now turning to us to aid in the design and 
manufacture of cast versions of their critical 
components that are currently manufactured as 
complex, heavy fabrications. By using specialist 
ADI material we are able to produce castings that 
exceed the strength of the current steel fabrications 
at a considerably lower weight with the added 
advantage of increased wear resistance extending 
the service life.
CASE STUDY
PRODUCT INNOVATION  
WITH OUR CUSTOMERS  
WINS NEW BUSINESS
A new customer saw 
an opportunity in the 
market for a new type of 
large ventilation blower 
that would replace 
the need for oil and 
gas refineries to buy 2 
smaller units. 
CASE STUDY
TURBOCHARGERS - LEICESTER
Chamberlin & Hill 
Castings has a proven  
track record as one of  
the few European 
foundries capable of 
supplying technically  
challenging turbocharger 
castings that consistently 
meet the automotive 
industry’s exacting 
standards.
As a complement to the existing range of products 
made at our Walsall foundry, our Leicester facility 
is now manufacturing the “hot end” turbine 
cover for commercial diesel turbochargers. These 
castings have especially demanding dimensional 
requirements and have to be capable of operating 
Working in conjunction with our customer, our 
technical team designed a casting process capable 
of producing this world-first, highly complex blower.
Due to the size and weight of the moulding boxes 
involved, weighing in excess of 25 tonnes when fully 
loaded with sand, numerous production challenges 
were overcome. In particular we had to re-think 
the handling procedure of the moulding boxes and 
by splitting the moulding box depth in half and 
moulding the castings as three-part moulds we 
were successfully able to manufacture a 7.2 tonne 
casting assembly from moulds measuring 4m x 2.4m 
x 2m, the largest ever produced at RDC, including 
the largest core ever made.
Our customer was delighted with the end casting 
and the new ventilation blower is fully assembled 
and destined for a Russian oil refinery. As a result 
of this success we expect repeat orders in the 
forthcoming years.
under extreme conditions due to the increased 
operating temperatures of modern, fuel efficient 
engines. 
These parts can be manufactured in a wide range 
of alloys suitable for the differing, high temperature, 
demands of various applications. A range of 
designs, with single and twin exhaust volutes can 
be accommodated on the versatile mould lines, in 
weights ranging from below 5kg up to 30kg.
The commercial production of the hot end turbine 
cover has only been possible by utilising the 
automotive standard technical expertise built up 
at Walsall and building upon our existing strong 
relations with key customers.
Quick hitches
Chamberlin & Hill Castings is a long-standing 
supplier to the construction vehicle industry 
and has been manufacturing components and 
assemblies for this sector over many years. With 
the continuing drive in the market for improved 
performance through optimised weight and 
strength, we have worked in partnership with 
our customers to convert many products from 
fabrications to castings. One such component is the 
quick hitch, where we now manufacture and supply 
the full range of sizes – from a 7kg version which 
is half the size of this page to the heavy duty 70kg 
version which is the size of a car engine. 
Photograph to the right: Solidification software aided product design 
Photograph: Quickhitch 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
8
GROUP AT A GLANCE
OUR BUSINESS
The Engineering Division currently comprises  
Exidor Ltd and Petrel Ltd.
ENGINEERING BUSINESS
EXIDOR LTD
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. In 2011, it added door 
closers to its range, following the acquisition out 
of administration of the assets of Jebron Ltd. Door 
closer production was fully integrated into the 
Cannock site by November 2011.
PETREL LTD
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. 
REVENUE BY BUSINESS
KEY PERFORMANCE INDICATORS
2013
2012
2011 4.7%
2010 3.0%
3.9%
5.8%
3.9%
RETURN ON SALES
2013
2012
2011 16.1%
2010 6.3%
10.5%
16.6%
10.5%
RETURN ON NET ASSETS
2013
2012
2011 3,182
2010 2,405
3,484
4,596
3,484
OPERATING PROFIT PER 
EMPLOYEE (£)
See case study on page 9 See case study on page 9
2013 HIGHLIGHTS
•	 Engineering sales up 4% in 2013.
•	 Driven by strong export sales at Petrel, up 18% 
in 2013.
2013
2012
2011 315
478
2010 178
331
331
UNDERLYING OPERATING 
PROFIT (£000)
2013
2012
2011 6,719
8,178
2010 6,030
8,523
8,523
REVENUE (£000)
 Exidor 62%
 Petrel 38% 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
Introduction
9
CASE STUDY
EUROPE’S LARGEST URBAN 
SHOPPING CENTRE CHOOSES 
EXIDOR
Westfield Stratford 
City is Europe’s largest 
urban shopping centre, 
incorporating retail, 
office, leisure and 
hotel facilities, cost 
approximately £1.45bn 
to build and occupies  
1.9 million sq ft of retail 
and leisure space.
CASE STUDY
PETREL LED
LED technology was 
first used in lighting 
applications to provide 
a reliable, low power 
solution for signalling 
and indication purposes.
Over recent years there has been rapid 
development of the technology as several 
companies have developed high power LEDs 
for use in commercial and industrial lighting 
to compete with traditional lamps such as 
Fluorescent or Metal Halide. 
The site is on three levels, located close to the 
Olympic Stadium, and in planning the overall design 
of the centre, the architects have paid particular 
attention to visitor safety, particularly in the event 
of fire or when, in an emergency, it is paramount to 
evacuate the centre quickly and safely. 
As Exidor is the brand leader in UK hardware 
manufacturing, the architect was keen to work in 
conjunction with us and specifically selected the 
Exidor 200/300 Series Emergency Exit Hardware 
throughout the centre in order to confidently 
meet all of the stringent requirements called for in 
the exit door hardware specification.
Certified to European safety standards, the stylish 
and yet robust 200/300 Series has been designed 
to provide the optimum in safety and security. This 
coupled with our market reputation for reliability 
and proactively engaging with the product 
specifier places us in a strong position  
to win future prestige orders.
Petrel has already entered the LED market to 
provide customers with hazardous area lighting 
solutions that carry the benefits of longer 
life, lower maintenance and reduced energy 
consumption. Being solid state components LEDs 
are also less prone to damage and external shock, 
making them ideal for use in harsh environments.  
The technology continues to develop at a 
considerable pace and the second generation of 
Petrel LED products is already under development, 
with several new lines due for launch in 2013.
Photograph above: Westfield shopping centre
Photograph below: 7 series LED light 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
10
CASE STUDY
INVESTING FOR THE FUTURE
STRENGTHENING SUBSIDIARY 
MANAGEMENT
It has always been Chamberlin’s policy to employ 
the right people for the right job at the right time. 
With our growth strategy focused on utilising 
our technical expertise to generate new business 
development and fill the significant capacity in our 
business, Chamberlin has invested in customer-
focused commercial staff throughout the Group.
During the year three new Managing Directors 
for Russell Ductile Castings (“RDC”), Petrel and 
Exidor have been recruited to accelerate our 
new business development programme. They 
bring with them a strong sales and marketing 
background, significant experience of developing 
global export markets and a proven track record 
of leading business development programmes to 
deliver organic growth. 
Chamberlin & Hill castings has built upon the 
extensive experience of the automotive and 
engineering sectors possessed by its Managing 
Director with the recruitment of a Commercial 
Director in order to further drive sales growth 
at Walsall and Leicester and fully take advantage 
of the opportunities presented by the new 
turbocharger original equipment manufacturers 
(“OEMs”) that have entered the market and are 
building production capacity to supply 2014 and 
2015 requirements.
Our technical departments at Leicester, RDC and 
Petrel have all been strengthened by the arrival 
of new technical leadership which possesses 
the necessary expertise to satisfy the technical 
challenges faced by designing new products to 
meet customer demands.
This strengthened commercial and technical 
expertise within the group, coupled with our 
existing dedicated finance personnel means we 
are well placed to achieve our goals of generating 
top line sales growth as well as continuous 
operational development to improve efficiency 
and maintain tight cost controls, and therefore 
drive the Group’s profitability.
CHAMBERLIN GRADUATE 
SCHEME
For around 20 years there had been no national 
programme for the delivery of foundry specific 
skills and provision was now very patchy and 
inadequate. All foundries in the UK had issues 
relating to succession planning and sourcing 
relevant training and skills development. In 2012, 
Chamberlin recognised that there was an urgent 
need to increase the number of skilled castings 
engineers and craftsmen. 
“In doing this scheme we 
have gained professional, 
high level problem solvers 
with enthusiasm and a 
state of the art, fresh way 
of thinking.”
Our response was twofold: to work in conjunction 
with the industry professional body, the Institute of 
Cast Metals Engineers (“ICME”) to help create a 
casting specific foundation degree qualification, and 
to create a company graduate scheme to directly 
train the next generation of casting engineers. 
Our graduate scheme consisted of two different 
types of work placement. The first was a one-year 
work in industry placement for degree or post 
graduate students to gain industrial experience 
within the Group. The second was a two-year 
Professional Excellence & Leadership Development 
Programme for qualified graduates, with a view 
to permanent employment within the Group on 
successful completion of the programme. 
Four placement students were recruited, two for 
each type of placement and were put to work on 
projects in the Walsall and Leicester foundries. 
The placement projects involved production 
technology, process engineering, metallurgical 
control, subcontractor assessment, machining, 
lead time matrix, costs and budgeting & vendor 
management systems. 
In doing this scheme we have gained professional, 
high level problem solvers with enthusiasm and 
a state of the art, fresh way of thinking. The 
graduates have been heavily involved in key 
projects around the Group and are playing an 
active part in the new process implementation at 
Walsall as referred to in the Chairman’s statement. 
They have brought vitality, a new insight into age 
old problems and have had a positive effect on the 
overall culture of the business. 
The graduate scheme is something we will 
continue well into the future to ensure we have a 
steady supply of talent entering the Group.
Photographs opposite: Exidor 700 series multi-point locking security 
hardware used to protect critical infrastructure
Photograph below: RDC volute as described in the case study on page 7 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
Introduction
11 chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
22531.04    18 June 2013 12:20 PM    proof 2
12 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
22531.04    18 June 2013 12:20 PM    proof 2
13
PERFORMANCE
CHIEF EXECUTIVE’S REVIEW 14–17  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
14
CHIEF EXECUTIVE’S REVIEW
CHIEF EXECUTIVE’S REVIEW 
The financial year to 31 March 2013 saw mixed 
trading conditions, with a slight softening of 
demand in the first half year followed by a further 
slowdown in the second half, particularly in the 
final months of the year. The slowdown was 
especially apparent in the power generation, 
quarrying and mineral processing sectors, and 
there was reduced order levels in turbocharger 
casings and housings. Although underlying 
demand remains subdued, our focus on business 
development is identifying new opportunities and 
I believe that our prospects for the medium term 
remain attractive.
FOUNDRIES
Chamberlin & Hill Castings (“CHC”)
CHC comprises our foundries in Walsall and 
Leicester which, since 2009, we have operated 
as a single business under the control of a single 
management team.
Our foundry at Walsall produces small castings, 
typically below 3kg in weight, in mid-to-high 
volumes. It has well-established expertise in the 
development and production of castings with 
complex internal passages, where the foundry 
process is the only cost-effective means of volume 
production. A major market for the Walsall 
foundry is automotive turbochargers, where 
modern designs require careful alignment of 
cooling and lubrication passages to meet the 
increased performance demanded by modern 
engines. In past reports I have commented that 
legislation to reduce CO2 emissions is promoting 
the introduction of smaller, turbocharged 
petrol engines and this technology shift is 
continuing. New turbocharger original equipment 
manufacturers (“OEMs”) have entered the market 
and are building production capacity to supply 
2014 and 2015 requirements and the existing 
players are defending their market share.
CHC has a long-standing relationship with 
BorgWarner, the global market leader in 
turbocharger manufacture, and in recent years 
we have added IHI Charging Systems, another 
major manufacturer, to the customer base, having 
developed a family of castings for the Company’s 
turbochargers. The production launch of this 
family of castings started in 2010 and the final part 
enters production in the first half of the current 
year. CHC is quoting components for supply to 
both turbo OEMs in 2014/15, and is working on 
developing relationships with new OEMs.
The demand for turbochargers is dictated by 
the number of vehicles built, and our scheduled 
demand reduced in the fourth quarter of the 
financial year as the European car market slowed. 
We expect demand to remain at these levels in the 
first half of the new financial year but, in general 
industry, projections show car build numbers in 
2013 at the same overall level as 2012, implying a 
recovery towards the end of the year.
Our Walsall foundry also supplies turbocharger 
castings for commercial diesel engines and 
demand in this sector remains stable. In 2012, 
we started to supply our first fully-machined 
turbocharger casting to this sector using a sub-
contractor and after proving capability, we have 
been able to increase the number of castings 
where we take machining responsibility. This 
approach fits well with the long-term goal of some 
of the turbocharger OEMs and we are currently 
evaluating other supply arrangements that will 
allow us to extend this offering to passenger car 
components. 
The technical challenges in castings can be 
simplified to issues of geometry and metallurgy. 
Walsall’s focus is on producing small castings 
made of relatively straightforward grades of iron, 
which have complex internal geometry. Our 
foundry in Leicester, which produces mid size 
castings typically around 20kg, produces castings 
with moderately complex shapes which require 
demanding metallurgy to deal with challenges 
from temperature, strength and wear resistance. A 
significant part of the Leicester foundry’s output 
is accounted for by the construction equipment 
industry, and reduced demand from this sector 
adversely affected the foundry in the latter months 
of the financial year. Demand remains subdued 
but Leicester can serve a variety of markets and 
work is underway to broaden the customer base. 
Our most significant opportunity is the initiative 
to enter the market for turbocharger turbine 
casings, a high temperature application where 
Leicester can effectively supply the commercial 
diesel sector through the relationships made at 
Walsall. Development of the first castings has 
proved successful and although final testing 
of our customer’s product has taken longer 
than anticipated we expect to start supplying 
production volumes in the new financial year. 
Russell Ductile Castings (“RDC”)
RDC, located in Scunthorpe, produces heavy 
castings weighting up to 6,000kg and delivers 
castings with complex geometry and challenging 
metallurgy. Applications typically require high 
strength or high temperature performance and 
include castings for large process compressors, 
industrial gas turbines and mining, quarrying and 
construction equipment. A significant proportion 
TIM HAIR
“Our focus on business 
development is identifying 
new opportunities and I 
believe that our prospects 
for the medium term 
remain attractive.” 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
15
Performance
of output is supplied as a finished part, with 
RDC taking responsibility for machining which is 
managed through a range of sub-contractors. The 
foundry is also the only UK producer of cast iron 
tunnel lining segments and I am pleased to note 
that a further contract, worth £0.8m, has been 
won to supply lining segments for an upgrade at 
Bond Street tube station. This follows a two year 
programme, which is now concluding, to supply 
Crossrail for approximately £3.0m of these parts. 
We expect other projects are likely to take place in 
future years.
RDC was adversely affected by a slowdown in its 
key markets in the latter months of the financial 
year and demand remains subdued. However, 
during the past year we completed a structured 
evaluation of potential markets and product 
applications and this has brought increased 
focus to our business development activity. We 
have brought into the business experienced sales 
people from outside the foundry industry and 
although the process for winning new work in the 
engineering sector is seldom rapid, we have seen 
some encouraging progress in developing new 
markets and new customer relationships.
RDC shares a number of customers and potential 
markets with our Leicester foundry, and the two 
sites are working closely to identify and pursue 
these shared opportunities.
ENGINEERING
Exidor
Located in Cannock, Exidor has the leading position 
in the UK market for securing bolts for emergency 
exits, known as panic hardware, and more recently 
has expanded into the related market of door 
closers through the acquisition of assets of a failed 
company. In the past year Exidor has maintained 
its position as UK market leader in panic hardware 
and continues to compete effectively in this 
market. The door closer product saw significant 
margin pressure with increased component costs 
but we have taken remedial action to address this 
and restore profitability. Under the leadership of 
a new Managing Director new applications for 
Exidor’s products have been identified, which can 
be fulfilled by refinements of existing products, 
and a programme to increase exports is underway. 
We expect both initiatives to create new growth 
opportunities over coming years. 
Petrel
Located in Birmingham, Petrel supplies certified 
lighting and control equipment for hazardous 
environments where there is a risk of explosion. 
Petrel has a small share of this market, but is a well 
respected brand with the potential to grow. 
We appointed a new Managing Director to the 
business in September who is driving the focus to 
develop Petrel’s market share. Structured selling 
techniques, improved distributor management 
and increased export activity are underway and 
product opportunities are being created by the 
increased availability of LED light sources. We  
look forward to seeing the results of this effort in 
future results.
OUTLOOK
We expect to see the prevailing softer market 
conditions persist over the first half of the new 
financial year. Nonetheless, we continue to focus 
on business development and on improving 
processes. This will stand us in good stead as 
demand returns and over the medium and long 
term, we believe there are significant organic 
growth opportunities for the Group. 
Photograph opposite: Bearing housing for engine turbocharger
Photograph below: Cut away of turbocharger
“We believe there are 
significant organic  
growth opportunities  
for the group.” 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
16
FINANCE REVIEW
Overview
Sales decreased by 7% during the year to £42.3m 
(2012: £45.5m) and gross profit margin decreased 
marginally from 19.5% in 2012 to 19.2% in 2013. 
As a large element of cost of sales is fixed costs 
that are incurred independently of movements in 
sales volumes, this slight reduction in gross profit 
margin masks a year on year increase in variable 
contribution. The year under review includes fixed 
costs of £5.8m (2012: £5.9m and 2011: £5.2m) and 
when these are excluded from gross profit to give 
an internal measure of variable contribution, the 
underlying variable margin has increased from 
31.6% in 2011 to 32.5% in 2012 and 32.9% in 2013. 
This demonstrates the continued improvements 
the Group is making despite challenges in the 
economy.
Foundry Division sales decreased by 10% to 
£33.7m, reflecting reduced demand across all three 
sites. Sales in the Engineering Division increased by 
4% to £8.5m. Underlying Group operating profit 
decreased by 24% to £1.3m (2012: £1.7m).
Financing costs continue to reduce in line with 
borrowings, with bank overdraft interest in the 
current year down 47% to £41,000 (2012: £78,000).
Underlying profit before tax is £1.3m and shows 
a 23% reduction on the prior year (2012: £1.7m). 
Underlying earnings per share reduced by 22% to 
14.0p (2012: 18.3p).
The statutory results show statutory operating 
profit of £1.1m (2012: £1.6m), statutory profit 
before tax of £0.9m (2012: £1.4m) and statutory 
earnings per share of 10.0p (2012: 16.1p).
Tax
The Group’s underlying tax charge for the year 
was £167,000 (2012: £242,000) with an underlying 
effective rate of 13% (2012: 15%). The tax allowances 
relating to our research and development spend 
reduced the Group’s corporation tax liability to nil 
from £145,000 in the prior year. It is the Group’s 
intention to continue to make research and 
development claims for tax purposes where possible. 
T ax payable for 2013 is £95,000. The statutory total 
tax charge for the year was £66,000 (2012: £183,000).
Cash generation and financing
Cash conversion continues to be of high 
importance for the Group and all Group 
subsidiaries are focused on this. Cash generated 
from operations was £2.3m (2012: £2.4m) which 
equates to over 170% of underlying operating 
profit and demonstrates the high level of cash 
generation. This extends the Group’s impressive 
record of consistent positive cash generation in 
excess of underlying operating profits, which was 
maintained during the recession, as illustrated in 
the chart above. 
Capital expenditure for the year increased slightly 
to £1.5m (2012: £1.4m). This was marginally 
above depreciation and amortisation of £1.3m 
(2012: £1.3m) and reflects a departure from the 
CHIEF EXECUTIVE’S REVIEW continued
2013
2012
1,735
2,430
1,322
2,260
2011
904
1,791
2010
(923)
502
2009
460
804 Underlying operating proﬁt
Operating cashﬂow
CASH V PROFIT (£000)
Photograph below: Highly skilled technical staff use state of the art solidification software to enhance product design 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
17
Performance
normal practice of capital expenditure matching 
depreciation and was due to a deposit for new 
plant to be acquired in the new financial year, as 
referred to in the Chairman’s Statement. 
Group borrowings continue to be reduced with 
financial liabilities down by £0.6m to just under 
£1.0m at the year end (2012: £1.6m). This is the 
lowest year end overdraft since March 2007. 
The Group is funded through a £5.0m overdraft 
facility that is renewable annually. The facility has 
been renewed through to 30 May 2014 and is not 
subject to any financial covenants.
Foreign exchange
In order to protect against future exchange 
rate movements the Group enters into forward 
currency contracts covering 80% of its forecast 
Euro denominated sales for the coming year. The 
Group has adopted hedge accounting in relation 
to these foreign currency contracts, as explained in 
detail in Note 2 to the Financial Statements.
During the period a number of forward contracts 
were identified as being ineffective from an 
accounting point of view as the sales for which the 
contracts were hedged against fell to below the 
level where hedge accounting could be applied. 
As such a charge of £69,000 was taken to non-
underlying items in the income statement where 
this would normally have gone through equity 
in the hedge reserve. A movement in fair value 
of £326,000 in respect of effective hedges was 
recognised in equity. 
Pension
The Group’s defined benefit pension scheme was 
closed to future accrual in 2007. Following the last 
triennial valuation, as at 1 April 2010, contributions 
were set at £315,000 per year for the period under 
review increasing by 3% per year thereafter. Based 
on current assumptions, this would eliminate the 
deficit by 2020. A triennial valuation as at 1 April 
2013 is currently underway.
The IAS 19 deficit at 31 March 2013 was £3.9m 
(2012: £3.1m). The increase principally reflects the 
reduction in the discount rate used to calculate 
scheme liabilities, as a consequence of a fall in 
bond yields over the last year.
Share-based payments
During the year a credit of £69,000 (2012: charge 
of £148,000) relating to share-based payments was 
recorded in the income statement. This reflects 
the shares that were forfeited upon the removal of 
Mark Bache from the Board and a reversal of prior 
year charges related to subsidiary management 
who left during the year.
All outstanding share options are exercisable at the 
year end and as such no further amount relating 
to the current share options is expected to be 
recorded in the income statement.
Exceptional items
The current year includes exceptional items 
of £222,000 (2012: £nil). Of the total amount, 
£186,000 relates to the removal of the former 
Finance Director and £36,000 relates to legal costs 
associated with a back pay dispute at Russell 
Ductile Castings Limited. These are explained 
further in note 12.
Tim Hair
Chief Executive
21 May 2013
Photograph below: Chamberlin produce performance critical components at RDC 22531.04    18 June 2013 12:20 PM    Proof 6
18
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
18 22531.04    18 June 2013 12:20 PM    Proof 6
19
GOVERNANCE
www.chamberlin.co.uk
BOARD OF DIRECTORS 20 
REPORT OF THE DIRECTORS  21–25 
CORPORATE GOVERNANCE  26–28 
DIRECTORS’ REMUNERATION 
REPORT 29–31 
INDEPENDENT AUDITORS’  
REPORT 32–33
19 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
20
CHIEF EXECUTIVE
Tim Hair
NON-EXECUTIVE CHAIRMAN
Keith Butler-Wheelhouse
Joined the Board: March 2013 
Aged 67, Keith joined the Board 
and was appointed non-executive 
Chairman in March 2013. Previously 
Chief Executive of Smiths Group plc, 
Saab Automobile Sweden and Delta 
Motor Corporation South Africa. He 
is currently non-executive Director 
of Plastics Capital plc and previously 
served as a non-executive Director 
with Atlas Copco AB, General 
Motors Europe, J Sainsbury plc and 
NIU Solutions.
Joined the Board: June 2006 
Aged 53, 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.
INDEPENDENT DIRECTOR
Alan Howarth
SENIOR INDEPENDENT DIRECTOR
Keith Jackson
Joined the Board: 2005 
Aged 64, 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. 
Joined the Board: January 2007 
Aged 67, 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. 
BOARD OF DIRECTORS
Mark Bache was removed from the Board on 11 December 2012.
At the Annual General Meeting to be held on 18 July 2013 (see the Notice of Annual General 
Meeting on pages 72 to 73), 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. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
21
Governance
REPORT OF THE DIRECTORS
The Directors present their report together with the audited financial statements for the year ended 31 March 2013.
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.
BUSINESS REVIEW AND FUTURE DEVELOPMENTS 
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 page 3 and Chief Executive’s Review on pages 14–17.
(a) Key Performance Indicators 
Key performance indicators (“KPIs”) are used to measure and evaluate Group performance against targets and monitor various activities throughout the Group. 
The main key performance indicators employed in the Group are set out below:
Year to
31 March
2013
Year to
31 March
2012
Return on sales Foundries 5.1% 5.6%
Engineering 3.9% 5.8%
Group 3.1% 3.8%
Return on net assets Foundries 19.2% 21.3%
Engineering 10.5% 16.6%
Group 16.0% 19.2%
Operating profit per employee Foundries £5,071 £6,106
Engineering £3,484 £4,596
Group £2,998 £3,503
The Directors note that the KPIs reflect the trading conditions of the Group during the year.
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 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).
Operating profit per employee The ratio of the segment’s operating profit to the segment’s average number of employees. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
22
REPORT OF THE DIRECTORS continued
(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
31 March
2013
Year to
31 March
2012
Foundries 337 340
Engineering 95 104
Head office* 9 9
Group 441 453
* Includes 3 non-executive Directors
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:
◗ ◗ 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;
◗ ◗ 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;
◗ ◗ actively encourage the minimisation of waste from all aspects of the business and promote the benefits of recycling and re-use;
◗ ◗ 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;
◗ ◗ 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
◗ ◗ 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. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
23
Governance
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 26–28. The more significant risks and uncertainties faced by the Group are set out below:
◗ ◗ 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.
◗ ◗ 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.
◗ ◗ 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.
◗ ◗ The global economic outlook has continued to be uncertain and the Group has been exposed to additional risks associated with rapid fluctuations 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.
◗ ◗ 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 2.0p final dividend (2012: 2.0p). An interim dividend of 1.25p (2012: 1.0p) has been paid during the year.
DIRECTORS
Details of the Directors of the Company at the year end 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 29–31.
DIRECTORS’ SHAREHOLDINGS
Beneficial interests of the Directors in the shares of the Company, including those of their immediate families were:-
At
31 March
2013
Number
of shares
At
31 March
2012
Number
of shares 
Keith Butler-Wheelhouse 58,500 —
Tim Hair 143,098 134,508
Keith Jackson 13,525 13,525
Alan Howarth 11,300 11,300
There have been no changes in the interests of the Directors set out above between 1 April 2013 and 21 May 2013.
SPECIAL BUSINESS AT THE ANNUAL 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 £663,177 (which represents approximately 33% of the issued share capital of the 
Company as at 21 May 2013). 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 £99,476. This sum represents 397,906 ordinary shares of 25 pence each, being equivalent to 5% of the issued share capital of the Company at 
21 May 2013. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
24
REPORT OF THE DIRECTORS continued
Authority to purchase own shares
At the Annual General Meeting in 2012, the Board was given authority to purchase and cancel up to 794,953 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 795,812 of its own shares, again representing just under 10% of its issued share capital at 21 May 2013. 
The authority is sought by way of a special resolution, details of which are also included at item 11 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 9 to 11 in the notice of meeting on pages 72–73.
SUBSTANTIAL SHAREHOLDERS
At 21 May 2013 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 shares
% of Issued 
Share Capital
Discretionary Unit Fund Managers 1,500,000 18.8
Milton Capital Partners 720,370 9.1
Henderson Global Investors 641,000 8.1
Schroder Institutional UK Smaller Companies Fund 400,000 5.0
AXA Framlington 300,000 3.8
Perfecta Assets Ltd 275,000 3.5
Quilter & Co 273,800 3.4
Chelverton Asset Management 265,000 3.3
STATEMENT OF DIRECTORS’ RESPONSIBILITIES 
The Directors are responsible for preparing the Annual Report and the Group and Company financial statements in accordance with applicable United Kingdom 
law and regulations. Company law requires the Directors to prepare Group and Company financial statements for each financial year. Under that law, the 
Directors have elected to prepare Group and Company financial statements under IFRSs as adopted by the European Union and in respect of the Company 
financial statements, as applied in accordance with the provisions of the Companies Act 2006.
Under Company Law the Directors must not approve the Group financial statements unless they are satisfied that they give a true and fair view of the state of 
affairs of the Group and of the profit or loss of the Group and Company for that period. In preparing the Group and Company financial statements the Directors 
are required to: 
◗ ◗ present fairly the financial position, financial performance and cash flows of the Group;
◗ ◗ select suitable accounting policies in accordance with IAS 8: Accounting Policies Changes in Accounting Estimates and Errors, and then apply them consistently;
◗ ◗ present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; 
◗ ◗ provide additional disclosures when compliance with the specific requirements in IFRS as adopted by the European Union is insufficient to enable users to 
understand the impact of particular transactions, other events and conditions on the Group and Company’s financial position and financial performance; 
◗ ◗ state whether the Group and Company financial statements have been prepared in accordance with IFRSs as adopted by the European Union, subject to any 
material departures disclosed and explained in the financial statements; and
◗ ◗ make judgements and estimates that are reasonable.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Company’s transactions and 
disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the Group and Company 
financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Company and hence for taking 
reasonable steps for the prevention and detection of fraud and other irregularities. 
The Directors are also responsible for preparing the Directors’ Report in accordance with the Companies Act 2006 and applicable regulations. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
25
Governance
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 AUDITORS
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:
◗ ◗ 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
◗ ◗ 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.
CHARITABLE AND POLITICAL DONATIONS
Donations to UK charitable organisations amount to £nil (2012: £nil). There were no political donations in the year (2012: £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 2013 was 59 days (2012: 61 days) and that of the Company was 35 days (2012: 34 days).
AUDITORS
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
Tim Hair
Secretary
21 May 2013 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
26
CORPORATE GOVERNANCE
PRINCIPLES OF GOOD GOVERNANCE
The Group is committed to high standards of corporate governance and although The Financial Services Authority’s Listing Rules, which incorporate the UK 
Corporate Governance Code (“the Code”) are not mandatory for AIM quoted companies, it has applied the main principles set out in the Code as described 
below and in the Directors’ Remuneration Report, in a manner appropriate to the size and nature of the Group.
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. Keith Butler-Wheelhouse 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) 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. 
(d) 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 re-appointments on retirement by 
rotation. It comprises the non-executive Directors and the Chief Executive. The Chairman of the Committee is Keith Butler-Wheelhouse.
(e) Re-election of Directors
  At the Annual General Meeting to be held on 18 July 2013 (see the Notice of Annual General Meeting on pages 72–73), all Directors will retire and, being 
eligible, offer themselves for re-election. Notwithstanding that Article 94 of the Articles of Association requires only of a selection of the Directors to 
retire by rotation, the Directors have taken the decision to apply the good corporate governance provisions of the 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.
(f) Directors’ remuneration
  The statement of the Company’s policy on executive Directors’ remuneration and details of Directors’ emoluments and service contracts are contained in 
the Directors’ Remuneration Report on pages 29–31.
(g) 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 six 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. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
27
Governance
(h) Audit Committee
  The Audit Committee, which consists of the three non-executive Directors, Keith Jackson (Chairman), Keith Butler-Wheelhouse 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.
(i) Remuneration Committee
 The Remuneration Committee comprises the three non-executive Directors. Further details are shown in the Directors’ Remuneration Report.
(j) Annual General Meeting
 All Directors expect to attend the Annual General Meeting and to be available to answer questions put to them by shareholders.
(k) 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 the Code. 
However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable and 
not absolute assurance against material misstatement or loss.
  The Code has a requirement that the Directors review the effectiveness of the Group’s system of internal controls. This includes internal financial controls 
and controls over financial, operational, compliance and risk management. The 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.
  There is an ongoing process to identify, evaluate and manage the significant risks faced by the Group – this process has been in place throughout the year 
under review and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the Board and accords with the FRC 
Guidance on Internal Control.
  The Group has established procedures for planning and budgeting and monitoring the operational and financial performance of all businesses in the 
Group, as well as their compliance with applicable laws and regulations. These procedures include:
◗ ◗ Clear responsibilities on the part of line and financial management for good financial controls in the production of accurate and timely financial 
management information.
◗ ◗ The control of key financial risks through clearly laid down authorisation levels and proper segregation of accounting duties.
◗ ◗ Detailed monthly budgeting and reporting of trading results, balance sheets and cash flows with regular reviews of variances from budgets by 
management and the Board.
◗ ◗ Reporting on compliance with 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. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
28
CORPORATE GOVERNANCE continued
SUMMARY OF ATTENDANCE AT MEETINGS
Board
meetings
Nominations
Committee
Remuneration
Committee
Audit
Committee
Number of meetings in the year 9 — 7 2
Keith Butler-Wheelhouse 9 — 7 2
Keith Jackson 9 — 7 2
Alan Howarth 9 — 7 2
Tim Hair 9 — n/a n/a
Mark Bache (removed 11 December 2012) 6 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
Tim Hair
Secretary
21 May 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
29
Governance
DIRECTORS’ REMUNERATION REPORT
REMUNERATION COMMITTEE
The Remuneration Committee comprises the three non-executive Directors: Alan Howarth (Chairman), Keith Butler-Wheelhouse 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 2013 the bonus in respect of Tim Hair was linked to the profit performance of the Group and the achievement of personal 
objectives. The maximum amount of bonus payable is 100% of his basic salary. 
(c) Share options
  An incentive to achieve longer-term improvements in shareholder value is afforded through three 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 at nil cost 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 of companies between the median and upper quartile ranking. No options are exercisable if growth is below this 
range. These options expire on the 10th 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 ninety 
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 31) in parallel to the options outstanding under schemes (i) and (ii) 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.  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
30
DIRECTORS’ REMUNERATION REPORT 
continued
SERVICE CONTRACTS
All executive Directors who served during the year have rolling service contracts terminable on no more than one year’s notice.
NON-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.
DIRECTORS’ REMUNERATION
Basic salary
£000
Fees
£000
Benefits
£000
Annual Bonus
£000
Payment under
Employment
settlement†
£000
Total remuneration
excluding pensions
2013
£000
2012
£000
Executive
Tim Hair * 213 — 23 43 — 279 345
Mark Bache
(removed 11 December 2012) 108 — 10 — 80 198 238
Non-executive
Keith Butler-Wheelhouse 75 — — — — 75 6
Keith Jackson 23 — — — — 23 23
Alan Howarth 23 — — — — 23 23
Total 442 — 33 43 80 598 635
Total 2012 410 39 38 200 — 687
* Highest paid Director in 2012 and 2013.
†
 Included in exceptional costs in note 12.
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, or prior years, to Directors under the Chamberlin & Hill Staff Pension and Life Assurance Scheme (2012: nil) 
which is a closed defined benefit scheme.
CONTRIBUTIONS INTO PERSONAL PENSION PLANS
Percentage of
basic salary
Contribution 
paid
2013
£000
Contribution 
paid
2012
£000
T Hair 10% 21 21
M Bache (removed 11 December 2012) 8% 8 11
No other pension contributions were paid in respect of Directors other than as disclosed above. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
31
Governance
DIRECTORS’ OPTIONS
31 March 
2012
Granted
in year
Exercised 
in year
Lapsed or 
forfeited
 in year
31 March 
2013
Option 
exercise
price Exercisable between Note
Tim Hair 16,665 — 8,590 8,075 — nil 27.03.2013 -27.03.2017
92,427 — — 92,427 — 52.8p 23.2.2013 -23.2.2020 #
698,584 — — 172,719 525,865 52.8p 23.2.2013 -20.11.2016
Mark Bache 12,819 — — 12,819 — nil 27.03.2013 -27.03.2017
33,824 — — 33,824 — nil 19.12.2012 -19.12.2018
78,543 — — 78,543 — 52.8p 23.2.2013 -23.2.2020 #
293,892 — — 293,892 — 52.8p 23.2.2013 -23.2.2020
1,226,754 — 8,590 692,299 525,865
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 29 (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.
Where applicable, option grants are exercisable only upon the achievement of the performance targets explained on page 29.
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.
The exercise of share options resulted in a gain for Tim Hair of £10,000 (2012: £134,000) and a gain for Mark Bache of £nil (2012: £53,000). At the time of exercise 
the Company’s share price was 119.5p (2012: 132p).
273,221 (2012: 287,334) options lapsed as the vesting criteria were not met. 419,078 options in favour of Mark Bache were forfeited following his removal from 
the Board.
There have been no changes in the interests set out above between 1 April 2013 and 21 May 2013 save the alteration to the exercise date of options outstanding 
for Tim Hair.
The mid-market price of the shares at 31 March 2013 was 102p and during the year ranged between 187.5p and 102p.
On behalf of the Board
Alan Howarth
Chairman, Remuneration Committee
21 May 2013 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
32
INDEPENDENT 
AUDITOR’S REPORT
We have audited the financial statements of Chamberlin plc for the year ended 31 March 2013 which comprise the Consolidated Income Statement, the 
Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Balance Sheet, the Consolidated and Parent Company Cash Flow 
Statement, the Group and 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 AUDITOR
As explained more fully in the Statement of Directors’ Responsibilities set out on page 24, 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 and Accounts 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:
◗ ◗ 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 2013 and of the Group’s profit 
for the year then ended;
◗ ◗ the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union; 
◗ ◗ 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
◗ ◗ the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 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. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
33
Governance
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:
◗ ◗ 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
◗ ◗ the parent Company financial statements are not in agreement with the accounting records and returns; or
◗ ◗ certain disclosures of Directors’ remuneration specified by law are not made; or
◗ ◗ 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
21 May 2013 22531.04    18 June 2013 12:20 PM    proof 2
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
34 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
FINANCIAL 
STATEMENTS
CONSOLIDATED INCOME 
STATEMENT 36 
CONSOLIDATED STATEMENT  
OF COMPREHENSIVE INCOME   37 
CONSOLIDATED BALANCE  
SHEET  38 
PARENT COMPANY BALANCE 
SHEET 39  
CONSOLIDATED CASH  
FLOW STATEMENT  40 
PARENT COMPANY CASH  
FLOW STATEMENT  41
STATEMENT OF CHANGES  
IN EQUITY  42–43 
NOTES TO THE ACCOUNTS  44–71 
NOTICE OF ANNUAL  
GENERAL MEETING  72–73 
SHAREHOLDER  
INFORMATION  74
35 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
36
CONSOLIDATED INCOME STATEMENT
for the year ended 31 March 2013
Year ended 31 March 2013 Year ended 31 March 2012
 Notes
Underlying
£000
Non-
underlying*
£000
Total
£000
Underlying
£000
Non-
underlying*
£000
Total
£000
Revenue 3 42,266   (69)  42,197  45,532  —  45,532 
Cost of sales  (34,146)  —   (34,146)   (36,652)  —   (36,652) 
Gross profit 8,120   (69)  8,051  8,880  —  8,880 
Other operating expense 4, 12  (6,798)   (222)   (7,020)   (7,145)  —   (7,145) 
Trading profit 1,322   (291)  1,031  1,735  —  1,735 
Share-based payment credit/(charge) —  69  69  —   (148)   (148) 
Operating profit/(loss) 7 1,322   (222)  1,100  1,735   (148)  1,587 
Finance costs 6  (41)   (200)   (241)   (78)   (79)   (157) 
Profit/(loss) before tax  1,281   (422)  859  1,657   (227)  1,430 
Tax (expense)/credit 8  (167)  101   (66)   (242)  59   (183) 
Profit/(loss) for the year from continuing 
operations attributable to equity holders of the 
Parent Company 1,114   (321)  793  1,415   (168)  1,247 
Earnings per share: 
basic 11 10.0p 16.1p 
underlying 11 14.0p 18.3p 
diluted 11 9.6p 14.5p 
diluted underlying 11 13.4p 16.5p 
* Non-underlying items represent ineffective hedge costs, exceptional items as disclosed in note 12, net financing costs on pension obligations, share-based payment costs and associated tax 
impact of these items. 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
37
Financial Statements
CONSOLIDATED STATEMENT OF 
COMPREHENSIVE INCOME
for the year ended 31 March 2013
Notes
2013
£000
2012
£000
Profit for the year 793  1,247 
Other comprehensive income
Movements in fair value on cash flow hedges taken to other comprehensive income  (229)  250 
Reclassification for cashflow hedge included in sales  (199)  229 
Deferred tax on movement in cash flow hedges 102   (120) 
Actuarial losses on pension assets and liabilities 22  (1,056)   (1,206) 
Deferred tax on actuarial losses on pension scheme* 302  404 
Current tax relating to actuarial losses on pension scheme*  (49)   (90) 
Movement on deferred tax on actuarial losses relating to rate change  (41)   (61) 
Other comprehensive expense for the period net of tax  (1,170)   (594) 
Total comprehensive (expense)/income for the period 
 attributable to equity holders of the Parent Company  (377)  653
* The presentation of the prior period tax movement related to pension scheme funding and actuarial losses has been grossed up to reflect the split between current and deferred tax. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
38
Notes
31 March
 2013
£000
31 March 
2012
£000
Non-current assets
Property, plant and equipment 13 8,199  8,121 
Intangible assets 14 620  642 
Deferred tax asset 18 1,158  1,056 
 9,977  9,819 
Current assets
Inventories 15 3,331  3,846 
Trade and other receivables 16 8,072  8,959 
 11,403  12,805 
Total assets 21,380  22,624 
Current liabilities
Financial liabilities 17 981  1,558 
Trade and other payables 17 7,931  8,684 
Provisions 17 26  — 
Current tax 95  145 
 9,033  10,387 
Non current liabilities
Deferred tax 18 141  133 
Defined benefit pension scheme deficit 22 3,913  3,061 
 4,054  3,194 
Total liabilities 13,087  13,581 
Capital and reserves
Share capital 19 1,990  1,987 
Share premium  1,269  1,269 
Capital redemption reserve  109  109 
Hedging reserve  (152)  174 
Retained earnings  5,077  5,504 
Total equity 8,293  9,043 
Total equity and liabilities 21,380  22,624 
Tim Hair 
Keith Butler-Wheelhouse Directors 
Keith Jackson                           
}
 
The accounts were approved by the Board of Directors on 21 May 2013.
CONSOLIDATED BALANCE SHEET
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
39
Financial Statements
Notes
31 March
 2013
£000
31 March 
2012
£000
Non-current assets
Property, plant and equipment 13 978  1,028 
Intangible assets 14 4  5 
Investments 21 8,159  8,159 
Deferred tax asset 18 946  897 
 10,087  10,089 
Current assets
Trade and other receivables 16 213  200 
Income taxes receivable 16 16  47 
Amounts due from subsidiary undertakings 16 5,032  4,968 
 5,261  5,215 
Total assets 15,348  15,304 
Current liabilities
Financial liabilities 17 3,826  3,055 
Trade and other payables 17 470  672 
Amounts due to subsidiary undertakings 17 607  606 
 4,903  4,333 
Non-current liabilities
Deferred tax 18 15  24 
Defined benefit pension scheme deficit 22 3,913  3,061 
 3,928  3,085 
Total liabilities 8,831  7,418 
Capital and reserves
Share capital 19 1,990  1,987 
Share premium  1,269  1,269 
Capital redemption reserve  109  109 
Retained earnings  3,149  4,521 
Total equity 6,517  7,886 
Total equity and liabilities 15,348  15,304 
Tim Hair 
Keith Butler-Wheelhouse Directors 
Keith Jackson                           
}
 
The accounts were approved by the Board of Directors on 21 May 2013.
PARENT COMPANY BALANCE SHEET
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
40
Operating activities Notes
31 March
 2013
£000
31 March 
2012
£000
Profit for the year before tax 859  1,430 
Adjustments to reconcile profit for the year to net cash inflow from operating activities:
Net finance costs excluding pensions 6 41  78 
Depreciation of property, plant and equipment 13 1,190  1,219 
Amortisation of software 14 102  79 
Amortisation of development costs 14 49  48 
Profit on disposal of property, plant and equipment 7  (13)   (68) 
Share-based payments 20  (69)  148 
Difference between pension contributions paid and  (204)   (347) 
  amounts recognised in the Income Statement 
Decrease/(increase) in inventories 515   (877) 
Decrease in receivables 757  873 
Decrease in payables  (993)   (68) 
Increase/(decrease) in provisions 26   (85) 
Cash generated from operations 2,260  2,430 
Net cash inflow from operating activities 2,260  2,430 
Investing activities
Purchase of property, plant and equipment 13  (1,353)   (1,185) 
Purchase of software 14  (60)   (243) 
Development costs 14  (69)   (32) 
Disposal of plant and equipment 98  83 
Net cash outflow from investing activities  (1,384)   (1,377) 
Financing activities
Interest paid 6  (41)   (78) 
Proceeds from issue of share capital —  500 
Dividends paid 9  (258)   (152) 
Net cash (outflow)/inflow from financing activities  (299)  270 
Net increase in financial liabilities 577  1,323 
Financial liabilities at the start of the year  (1,558)   (2,881) 
Financial liabilities at the end of the year  (981)   (1,558) 
Financial liabilities comprise:
Bank overdraft 17  (981)   (1,558) 
  (981)   (1,558)
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
41
Financial Statements
Operating activities Notes
31 March
 2013
£000
31 March 
2012
£000
Loss for the year before tax  (134)   (542) 
Adjustments to reconcile loss for the year to net cash inflow from operating activities:
Net finance costs excluding pensions 109  145 
Depreciation of property, plant and equipment 13 62  74 
Amortisation of software 14 3  2 
Loss on disposal of property, plant and equipment 2 —
Share-based payments 20  (69)  148 
Difference between pension contributions paid 
 and amounts recognised in the Income Statement  (204)   (347) 
(Increase)/decrease in receivables  (13)  2,914 
Decrease in payables  (144)   (1,364) 
Net cash (outflow)/inflow from operating activities  (388)  1,030 
Investing activities
Purchase of property, plant and equipment 13  (83)   (70) 
Purchase of Software 14  (2)   (4) 
Disposal of plant and equipment 69  10 
Net cash outflow from investing activities  (16)   (64) 
Financing activities
Interest paid  (109)   (145) 
Proceeds from issue of share capital —  500 
Dividends paid 9  (258)   (152) 
Net cash (outflow)/inflow from financing activities  (367)  203 
Net (decrease)/increase in financial liabilities  (771)  1,169 
Financial liabilities at the start of the year  (3,055)   (4,224) 
Financial liabilities at the end of the year  (3,826)   (3,055) 
Financial liabilities comprise:
Bank overdraft 17  (3,826)   (3,055) 
  (3,826)   (3,055) 
PARENT COMPANY CASH FLOW STATEMENT
for the year ended 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
42
Group
Share 
capital
£000
Share
premium
account
£000
Capital 
redemption
reserve
£000
Hedging 
reserve
£000
Retained
earnings
£000
Attributable 
to equity 
holders of the 
Parent
£000
Balance at 1 April 2011 1,859  862  109   (185)  5,134  7,779 
Profit for the year —  —  —  —  1,247  1,247 
Other comprehensive income
 for the year net of tax  —  —  —  359   (953)   (594) 
Total comprehensive income —  —  —  359  294  653 
Share placement 93  407  —  —  —  500 
Shares issued on exercise of share options 35  —  —  —   (35)  — 
Dividends paid —  —  —  —   (152)   (152) 
Share-based payment  —  —  —  —  113  113 
Deferred tax on employee share options —  —  —  —  150  150 
Balance at 1 April 2012 1,987  1,269  109  174  5,504  9,043 
Profit for the year —  —  —  —  793  793 
Other comprehensive income
 for the year net of tax  —  —  —   (326)   (844)   (1,170) 
Total comprehensive income —  —  —   (326)   (51)   (377) 
Shares issued on exercise of share options 3  —  —  —   (3)  — 
Dividends paid —  —  —  —   (258)   (258) 
Share-based payment  —  —  —  —   (11)   (11) 
Deferred tax on employee share options —  —  —  —   (104)   (104) 
Balance at 31 March 2013 1,990  1,269  109   (152)  5,077  8,293
 
Company
Share
capital
£000
Share
premium
account
£000
Capital
redemption
reserve
£000
Retained
earnings
£000
Attributable 
to equity 
holders of the 
Company
£000
Balance at 1 April 2011 1,859  862  109  6,003  8,833 
Loss for the year —  —  —   (605)   (605) 
Other comprehensive income
 for the year net of tax  —  —  —   (953)   (953) 
Total comprehensive income —  —  —   (1,558)   (1,558) 
Share placement 93  407  —  —  500 
Shares issued on exercise of share options 35  —  —   (35)  — 
Dividends paid —  —  —   (152)   (152) 
Share-based payment —  —  —  113  113 
Deferred tax on employee share options —  —  —  150  150 
Balance at 1 April 2012 1,987  1,269  109  4,521  7,886 
Loss for the year —  —  —   (152)   (152) 
Other comprehensive income
 for the year net of tax  —  —  —   (844)   (844) 
Total comprehensive income —  —  —   (996)   (996) 
Shares issued on exercise of share options 3  —  —   (3)  — 
Dividends paid —  —  —   (258)   (258) 
Share-based payment —  —  —   (11)   (11) 
Deferred tax on employee share options —  —  —   (104)   (104) 
Balance at 31 March 2013 1,990  1,269  109  3,149  6,517 
 
STATEMENT OF CHANGES IN EQUITY  22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
43
Financial Statements
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. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
44
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 2013 were authorised for issue by the 
Board of the Directors on 21 May 2013 and the balance sheets were signed on the Board’s behalf by Tim Hair, Keith Butler-Wheelhouse and Keith Jackson. 
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) as adopted by the European 
Union. 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.
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 14–17. 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 May 2014. 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 Directors believe that this format sets out 
the performance of the Group more clearly.
New standards adopted 
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 for annual periods beginning after the date of these 
financial statements. 
International Accounting Standards  Effective date
IAS 1 Financial Statement Presentation — Presentation of Items of Other Comprehensive Income 1 July 2013
IAS 19 Employee Benefits (revised) 1 January 2013
IAS 27 Separate Financial Statements (revised) 1 January 2014*
IAS 28 Investments in Associates and Joint Ventures (revised) 1 January 2014*
IFRS 9 Financial Instruments: Classification and Measurement 1 January 2015
IFRS 10 Consolidated Financial Statements 1 January 2014*
IFRS 11 Joint Arrangements 1 January 2014*
IFRS 12 Disclosure of Interests in Other Entities 1 January 2014*
IFRS 13 Fair Value Measurement 1 January 2013
IFRS 7 & IAS 32 Offsetting of Financial Instruments 1 January 2013 and 1 January 2014
*Effective date in EU (early adoption permitted)
International Financial Reporting Interpretive Committee (IFRIC)
None
NOTES TO THE ACCOUNTS
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
45
Financial Statements
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  continued
The Directors have also considered the IASB’s annual improvements to International Financial Reporting Standards effective 1 January 2013.
The standards and interpretations listed above and the annual improvements have not been adopted early by the Group. The Directors do not anticipate 
that the adoption of these standards and interpretations and other improvements will have a material impact on the Group’s reported disclosures, 
income or net assets in the period of adoption except for:
IAS 19 Employee Benefits (revised) — The revised standard includes a number of fundamental changes, the most significant one for the Group is that 
the expected return on scheme’s assets will be calculated using the same interest rate as applied for the purpose of discounting the pension scheme 
liabilities. The income statement charge for the year ended 31 March 2013 has been calculated as £200,000 for this year’s disclosures under the current 
standard. Under the new standard the charge has been calculated as £260,000. This year’s income statement will be restated under the new standard 
when disclosed next year. 
IAS 1 Financial Statement Presentation — Presentation of Items of Other Comprehensive Income — The main change resulting from these amendments 
is a requirement for entities to group items presented in other comprehensive income on the basis of whether they would be reclassified to profit or loss 
at a future point in time. It does not change the nature of items that are currently recognised in other comprehensive income.
The Directors have made an assessment of the impact of IFRS 10-12 and IFRS 13 and consider that they will not have a material impact on the Group.
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 IAS39 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.
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 goodwill is monitored for internal management purposes and will not be larger than 
an operating segment before aggregation. Goodwill is tested for impairment when indicators of impairment are identified.
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. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
46
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  continued
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. 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.
The recoverable amount of property, plant and equipment is the greater of net selling price (fair value less costs to sell) 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.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
47
Financial Statements
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  continued
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 with the amortisation charge included within other 
operating expenses. 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 between 3 years 
for normal software to 10 years for ERP systems.
Intangible assets in the course of development 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.
Maintenance items are held in inventory and expensed on use unless they exceed a de minimis level where they are capitalised under plant and 
equipment and depreciated over the remaining useful economic life of the item of plant or equipment to which they relate.
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. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
48
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  continued
Foreign currency translation, derivative financial instruments and hedging
The functional and presentation currency of Chamberlin plc and its subsidiary undertakings 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 in other 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 sales when the 
forecast hedged transaction occurs.
At 31 March 2013 the Group held 10 foreign currency forward contracts designated as hedges of expected future sales to customers in Europe for which 
the Group has highly probable forecasted transactions.
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. 
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 are recognised in full in the period in which they occur, in 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 within the next financial year.
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 other comprehensive income or equity if it relates to items that are credited or charged to other 
comprehensive income or to equity respectively. Otherwise income tax is recognised in the income statement.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
49
Financial Statements
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  continued
Revenue
Revenue is recognised when the significant risks and rewards of ownership of the goods, in line with the International Commercial terms as defined by the 
International Chamber of Commerce, 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.
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 any service and performance conditions (vesting conditions) 
other than performance conditions linked to the price of the shares of the Company (market conditions). Any other conditions which are required to 
be met in order for an employee to become fully entitled to an award are considered to be non-vesting conditions. Like market performance conditions, 
non-vesting conditions are taken into account in determining the grant date fair value.
No expense is recognised for awards that do not ultimately vest except for awards where vesting is conditional upon a market vesting condition or a  
non-vesting condition, which are treated as vesting irrespective of whether or not the market vesting condition or non-vesting condition is satisfied, 
provided all non-market vesting conditions are satisfied.
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 management’s best estimate of the achievement or otherwise of non-market vesting conditions and of the number of equity instruments that will 
ultimately vest or, in the case of an instrument subject to a market condition or a non-vesting condition, be treated as vesting above. The movement 
since the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity.
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.
Non-underlying and exceptional 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 ineffective hedge costs, share-based payment costs, net financing costs of pension obligations, costs 
associated with the removal of former Finance Director, legal costs and associated tax impact on these items.
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 Development Costs – the Group determines whether 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, future salary increases, mortality rates and future pension increases.
◗ ◗ Legal provisions – the Group makes provision for legal cases where future costs are expected to be incurred in either defending the claim or in anticipating 
a settlement. The Group will seek legal advice on the chances of successful defence of any claim when assessing the extent of legal provision required.
◗ ◗ Restructuring provisions – the Group makes provision for restructuring costs, based on management’s best estimate of the costs of implementing such 
a restructuring.
◗ ◗ Recoverability of deferred tax assets – deferred income tax assets are recognised only to the extent that it is probable that taxable profits will be 
available against which the deductible temporary differences, carried forward tax credits or tax losses can be utilised. Deferred tax assets relating to the 
pension scheme deficit are recognised to the extent that contributions into the pension scheme are designed to eliminate the deficit and return the 
scheme to a fully funded position by April 2020. The deferred tax asset is considered to be recoverable given the forecast results of the Group. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
50
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, the Chief 
Executive.
The Group’s geographical segments are determined by the location of the Group’s customers.
(i) By operating segment
Segmental revenue Segmental operating profit
Year ended
 2013
£000
2012
£000
 2013
£000
2012
£000
Foundries 33,674  37,354  1,709  2,076 
Engineering 8,523  8,178  331  478 
Segment Results 42,197  45,532  2,040  2,554 
Reconciliation of reported segmental operating profit
Segment operating profit 2,040  2,554 
Shared Cost (including share-based payment charge) (718)  (967) 
Exceptional costs (note 12) (222)  — 
Net finance costs (note 6) (241)  (157) 
Profit before tax 859  1,430 
Segmental assets
Foundries 15,428  15,951 
Engineering 4,756  4,629 
 20,184  20,580 
Segmental liabilities
Foundries (6,437)  (6,184) 
Engineering (1,615)  (1,741) 
 (8,052)  (7,925) 
Segmental net assets 12,132  12,655 
Unallocated net liabilities (3,839)  (3,612) 
Total net assets 8,293  9,043 
Unallocated net liabilities include the pension liability of £3,913,000 (2012: £3,061,000), financial liabilities of £981,000 (2012: £1,558,000), deferred tax 
asset of £1,017,000 (2012: £923,000) and other assets of £38,000 (2012: £84,000).
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
51
Financial Statements
3 SEGMENTAL ANALYSIS continued
Capital expenditure, depreciation and amortisation
Foundries Engineering Total
Capital additions
 2013
£000
2012
£000
 2013
£000
2012
£000
2013
£000
2012
£000
Property, plant and equipment (note 13) 1,118  818  235  367  1,353  1,185 
Software (note 14) 60  237  —  6  60  243 
Development costs (note 14) 46  —  23  32  69  32 
Foundries Engineering Total
Depreciation and amortisation
 2013
£000
2012
£000
 2013
£000
2012
£000
2013
£000
2012
£000
Property, plant and equipment (note 13) (948)  (945)  (242)  (274)  (1,190)  (1,219) 
Software (note 14) (87)  (64)  (15)  (15)  (102)  (79) 
Development costs (note 14) (35)  (42)  (14)  (6)  (49)  (48) 
(ii) Geographical information 
Revenue by location of customers
 2013
£000
2012
£000
United Kingdom 28,534  31,956 
Germany 7,091  7,196 
Rest of Europe 3,896  3,413 
Other countries 2,676  2,967 
 42,197  45,532
The Group’s assets and costs are all located within the United Kingdom.
No individual customer represents more than 10% of Group revenue (2012: none).
4 OTHER OPERATING EXPENSES
 2013
£000
2012
£000
Distribution costs 1,114 1,237
Administration and selling expenses 5,684 5,908
Operating expenses before exceptional items 6,798 7,145
Exceptional items (note 12) 222  — 
Operating expenses 7,020 7,145
5 STAFF NUMBERS AND COSTS
The average number of people employed by the Group during the year was:
 2013
Number
2012
Number
Management and administration 81  92 
Production 360  361 
Total employees 441  453  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
52
5 STAFF NUMBERS AND COSTS continued
The aggregate employment costs of these employees were as follows:-
 2013
£000
2012
£000
Wages and salaries 12,320  13,166 
Social security costs 1,211  1,347 
Other pension costs (note 22) 276  286 
Share-based payment expense (note 20) (69)  148 
 13,738  14,947
Directors’ remuneration summary
 2013
£000
2012
£000
Directors’ remuneration 518  687 
Company contributions to money purchase pension scheme 30  32 
Payment under an employment settlement agreement in March 2013 80  — 
Aggregate gains made by Directors on exercise of options 10  187 
Share-based payment (credit)/charge of options granted to Directors (see note 20) (11)  113
Number of Directors accruing benefits under:
 2013
Number
2012
Number
Defined contribution pension schemes 2  2 
Directors’ remuneration is analysed in detail in the Directors’ Remuneration Report on pages 29–31.
The total amount payable to the highest paid Director in respect of remuneration was £279,000 (2012: £345,000). Company pension contributions of 
£21,000 (2012: £21,000) were made to a money purchase pension scheme on his behalf. The aggregate gain made on exercise of share options was £10,000 
(2012: £134,000).
6 FINANCE COSTS
 2013
£000
2012
£000
Finance costs
Bank overdraft interest payable (41)  (78) 
Finance cost of pensions (see note 22) (200)  (79) 
 (241)  (157)
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
53
Financial Statements
7 OPERATING PROFIT
 2013
£000
2012
£000
This is stated after charging/(crediting):
Profit on disposal of fixed assets  (13)  (68) 
Depreciation of owned assets 1,190  1,219 
Amortisation of software 102  79 
Research and development expenditure (excluding capitalised development: note 14) 79  56 
Amortisation of development costs 49  48 
Cost of inventories recognised as an expense 18,055  18,997 
Exceptional costs (note 12) 222  — 
Exchange gain (12)  (46) 
Auditors’ remuneration: 
 Group audit fees 30  30 
 Audit fees for statutory accounts of subsidiaries 55  55 
 Audit related assurance servcies 5  5 
 Services relating to corporate finance transactions not covered above —  55 
Rentals under operating leases: 
 Hire of plant and equipment 101  101 
 Other 330  331 
Fees paid to the Company for non-audit services are not disclosed in these financial statements because the Group financial statements are required to 
disclose such fees on a consolidated basis.
8 TAXATION
 2013
£000
2012
£000
Current tax:
UK Corporation tax at 24% (2012: 26%) 144  235 
Adjustments in respect of prior years (145)  — 
(1) 235 
Deferred Taxation:
Origination and reversal of timing differences 117  (44) 
Adjustments in respect of prior years (53)  (16) 
Change in tax rate 3  8 
 67  (52) 
Tax expense reported in the consolidated income statement* 66  183
* The presentation of the prior period tax movement related to pension scheme funding and actuarial losses has been grossed up to reflect the split between current and  
deferred tax.
The Corporation tax rate fell from 26% for the year ended 31 March 2012 to 24% for the year ended 31 March 2013. The Corporation tax rate will fall to 
23% from 1 April 2013, a rate change which was substantively enacted on 3 July 2012. The Chancellor has announced progressive reductions to 20% in 
corporation tax rates, with a 2% fall from 1 April 2014 and a further 1% fall from 1 April 2015 but these changes have not been substantively enacted.
It is not anticipated that the subsequent reductions to 20%, 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 £Nil (2012: £Nil). 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
54
8 TAXATION continued
In addition to the amount charged to the consolidated income statement, tax movements recognised through other comprehensive income and equity 
were as follows:
 2013
£000
2012
£000
Current tax: 49  90 
 49  90 
Deferred Taxation:
Retirement benefit obligation (302)  (404) 
Fair value movements on cash flow hedges (102)  120 
Change in tax rate 41  61 
 (363)  (223) 
Tax credit reported in the statement of comprehensive income* (314)  (133) 
* The presentation of the prior period tax movement related to pension scheme funding and actuarial losses has been grossed up to reflect the split between current and  
deferred tax.
 2013
£000
2012
£000
Current tax: —  — 
 —  — 
Deferred Taxation:
Employee share options 104  (150) 
Tax charge/(credit) reported in the statement of changes in equity 104  (150)
 2013
£000
2012
£000
Reconciliation of total tax charge
Profit on ordinary activities before tax 859  1,430 
Corporation tax charge at standard rate of 24% (2012: 26%) on loss before tax 206  372 
Adjusted by the effects of:-
Expenses not deductible for tax purposes 66  31 
Short term timing differences
— other timing differences (11)  (9) 
— recognition of tax losses —  (203) 
Amounts under provided in prior years
— corporation tax (145)  — 
— deferred tax (53)  (16) 
Movement in deferred tax on change in corporation tax rate 3  8 
Total tax expense reported in the income statement 66  183 
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
55
Financial Statements
9 DIVIDENDS PAID AND PROPOSED
 2013
£000
2012
£000
Paid equity dividends on ordinary shares
2012 final dividend of 2.0p per share (2011: 1.0p per share) 159  75 
2013 interim dividend of 1.25p per share (2012: 1.0p per share) 99  77 
 258  152 
Proposed final dividend subject to shareholder approval  
2013 final dividend of 2.0p per share (2012: 2.0p per share) 159  159 
 
10 PARENT COMPANY TRANSFER TO RESERVES
The loss dealt with in the accounts of the Parent Company was £152,000 (2012: £605,000).
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, as analysed below, which excludes non-underlying items as defined in note 2, summary of significant accounting policies, has also been disclosed as 
the Directors believe this allows a better assessment of the underlying trading performance of the Group.
Exceptionals costs are detailed in note 12.
 2013
£000
2012
£000
Earnings for basic earnings per share 793  1,247 
Ineffective hedges 69  — 
Taxation on ineffective hedges (17)  — 
Exceptional costs 222  — 
Taxation effect of exceptional costs (53)  — 
Net financing costs on pension obligations  200  79 
Taxation effect of pension obligation (48)  (21) 
Share-based payment (credit)/charge (69)  148 
Taxation effect of share-based payments 17  (38) 
Earnings for underlying earnings per share 1,114  1,415 
 2013
Number
2012
Number
Weighted average number of ordinary shares 7,950  7,731 
Adjustment to reflect shares under options 349  844 
Weighted average number of ordinary shares — fully diluted 8,299  8,575 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
56
12 EXCEPTIONAL COSTS
 2013
£000
2012
£000
Removal of former Finance Director 186  — 
Legal costs relating to subsidiary back pay claim 36  — 
 —  — 
 222  — 
Taxation
— tax effect of exceptional costs (53)  — 
 (53)  — 
On 11 December 2012 the Company removed Mark Bache as Finance Director. Costs associated with his removal include a payment under an 
employment settlement agreement in March 2013, legal costs associated with his removal and costs associated with the recruitment of a successor.
Legal costs are in relation to a dispute for back pay at Russell Ductile Castings Limited and comprise the amount offered to settle the dispute along with 
legal costs incurred to date and future legal costs expected to be incurred (see note 17).
13 PROPERTY, PLANT AND EQUIPMENT
Group
Land and
buildings
£000
Plant and
machinery
£000
Motor
vehicles
£000
Total
£000
Cost 
At 1 April 2011 5,283  25,669  642  31,594 
Additions 160  815  210  1,185 
Disposals —  (440)  (127)  (567) 
At 31 March 2012 5,443  26,044  725  32,212 
Additions 128  1,077  148  1,353 
Disposals —  (20)  (158)  (178) 
At 31 March 2013 5,571  27,101  715  33,387 
Depreciation
At 1 April 2011 1,667  21,351  406  23,424 
Charge for year 121  978  120  1,219 
Disposals —  (440)  (112)  (552) 
At 31 March 2012 1,788  21,889  414  24,091 
Charge for year 128  937  125  1,190 
Disposals — (11)  (82)  (93) 
At 31 March 2013 1,916  22,815  457  25,188 
Net book value
At 31 March 2013 3,655  4,286  258  8,199 
At 31 March 2012 3,655  4,155  311  8,121 
At 31 March 2011 3,616  4,318  236  8,170 
Included within plant and machinery is £93,000 (2012: £nil) relating to assets under the course of construction which is not depreciated.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
57
Financial Statements
13 PROPERTY, PLANT AND EQUIPMENT continued
Net book value of land and buildings comprises:-
 2013
£000
2012
£000
Freehold 3,648  3,641 
Short leasehold (leasehold improvements) 7  14 
 3,655  3,655 
Company
Land and
buildings
£000
Plant and
machinery
£000
Motor
vehicles
£000
Total
£000
Cost 
At 1 April 2011 1,670  54  110  1,834 
Additions —  13  57  70 
Disposals —  —  (33)  (33) 
At 31 March 2012 1,670  67  134  1,871 
Additions —  35  48  83 
Disposals  —  —  (105)  (105) 
At 31 March 2013 1,670  102  77  1,849 
Depreciation
At 1 April 2011 733  26  37  796 
Charge for year 27  7  40  74 
Disposals —  —  (27)  (27) 
At 31 March 2012 760  33  50  843 
Charge for year 28  11  23  62 
Disposals —  —  (34)  (34) 
At 31 March 2013 788  44  39  871 
Net book value
At 31 March 2013 882  58  38  978 
At 31 March 2012 910  34  84  1,028 
At 31 March 2011 937  28  73  1,038 
Freehold land included above not subject to depreciation amounted to:
 Group
£000
Company
£000
2013 743  743 
2012 743  743  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
58
14 INTANGIBLE ASSETS
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Software 501  543  4  5 
Development costs  119  99  —  — 
 620  642  4  5
Software
 Group
£000
Company
£000
Cost
At 1 April 2011 838  16 
Additions 243  4 
Disposals (6)  — 
At 31 March 2012 1,075  20 
Additions 60  2 
At 31 March 2013 1,135  22 
Amortisation/impairment
At 1 April 2011 459  13 
Charge for the year 79  2 
Disposals (6)  — 
At 31 March 2012 532  15 
Charge for year 102  3 
At 31 March 2013 634  18 
Net Book Value
At 31 March 2013 501  4 
At 31 March 2012 543  5 
At 31 March 2011 379  3
Software has an estimated useful life of between three and ten years.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
59
Financial Statements
14 INTANGIBLE ASSETS continued
Development costs capitalised
Group
£000
Company
£000
Cost
At 1 April 2011 413  — 
Additions  32  — 
At 31 March 2012 445  — 
Additions  69  — 
At 31 March 2013 514  — 
Amortisation/impairment
At 1 April 2011 298  — 
Charge for year 48  — 
At 31 March 2012 346  — 
Charge for year 49  — 
At 31 March 2013 395  — 
Net Book Value
At 31 March 2013 119  — 
At 31 March 2012 99  — 
At 31 March 2011 115  — 
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 five years from the commencement of commercial sales.
15 INVENTORIES
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Raw materials 1,424  1,406  —  — 
Work in progress 968  1,367  —  — 
Finished goods 939  1,073  —  — 
 3,331  3,846  —  —  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
60
16 TRADE AND OTHER RECEIVABLES
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Trade receivables 7,356  8,116  —  — 
Amounts due from subsidiary undertakings —  —  5,032  4,968 
Other receivables 105  92  98  87 
Prepayments 611  507  115  113 
Fair value of derivative forward contracts —  244  —  — 
 8,072  8,959  5,245  5,168 
Trade receivables are denominated in the following currencies:
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Sterling 6,015  7,075  —  — 
Euro  1,341  1,041  —  — 
 7,356  8,116  —  — 
Out of the carrying amount of trade receivables of £7,356,000 (2012: £8,116,000), £1,903,000 (2012: £1,987,000) 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 
2013 trade receivables at a nominal value of £293,000 (2012: £374,000) were impaired and fully provided for. Movements in the provision for impairment 
of receivables were as follows:
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
At 1 April 374  252  —  — 
Charge for year 152  231  —  — 
Amounts written off (233)  (109)  —  — 
At 31 March 293  374  —  — 
As at 31 March 2013, the analysis of trade receivables that were past due but not impaired is as follows:
Total
£000
Neither past 
due nor 
impaired
£000
Past due but not impaired
<30 days
£000
30–60 days
£000
60–90 days
£000
90–120 days
£000
>120 days
£000
2013 7,356  5,036  1,676  219  291  134  — 
2012 8,116  5,631  2,088  234  69  94  — 
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.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
61
Financial Statements
16 TRADE AND OTHER RECEIVABLES continued
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Debtors where external credit ratings have been sought 6,586  7,156  —  — 
Debtors where internal credit assessments have been made 770  960  —  — 
 7,356  8,116  —  — 
Of the balance in respect of counterparties with internal ratings 2% (2012: nil%) is in respect of new customers, and 98% (2012: 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
 2013
£000
2012
£000
 2013
£000
2012
£000
UK corporation tax —  —  16  47 
17 CURRENT LIABILITIES
Financial liabilities
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Bank overdraft 981  1,558  3,826  3,055 
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 May 2014. Interest is payable at 2.0% (2012: 2.00%) over base rate.
Trade and other payables
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Trade creditors 5,522  6,140  —  — 
Amounts due to subsidiary undertakings —  —  607  606 
Other taxation and social security 673  779  45  28 
Other creditors 341  391  42  — 
Accruals 1,097  1,316  383  586 
Share-based payments —  58  —  58 
Fair value of derivative forward contracts 298  —  —  — 
 7,931  8,684  1,077  1,278 
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. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
62
17 CURRENT LIABILITIES continued
Provisions
Legal
£000
Group
Reorganisation
£000
Total
£000
As at 31 March 2011 —  85  85 
Utilised —  (85)  (85) 
As at 31 March 2012 —  —  — 
New provision 26  —  26 
As at 31 March 2013 26  —  26
Reorganisation 
Provision in respect of integrating the assets acquired from the administrators of Jebron Ltd into Exidor, fully utilised during the prior year.
Legal
Provision in respect of offer made to date and future legal costs anticipated to be incurred in defence of back pay claim by Group employees.
18 NON-CURRENT LIABILITIES
Provision for liabilities
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Deferred taxation 141  133  15  24 
Deferred tax liabilities
 2013
£000
2012
£000
Group liabilities
Temporary differences relating to capital allowances 66  — 
Temporary differences relating to cash flow hedges —  55 
Capital gains rolled over 75  78 
 141  133 
Company liabilities
 2013
£000
2012
£000
Temporary differences relating to capital allowances 15  24 
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
63
Financial Statements
18 NON CURRENT LIABILITIES continued
Deferred tax assets
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Temporary differences relating to capital allowances —  (86)  —  — 
Temporary differences relating to pension scheme deficit 900  735  900  735 
Temporary differences relating to cash flow hedges 45  —  —  — 
Temporary differences relating to share options 46  150  46  150 
Other temporary differences 167  257  —  12 
 1,158  1,056  946  897
Other temporary differences include a deferred tax asset of £161,000 (2012: £187,000), 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 forseeable future. Group tax losses not carried forward for which a deferred tax asset has not been recognised total £nil (2012: £nil). The 
deferred tax asset relating to the pension scheme deficit is deemed recoverable based upon the contributions into the pension scheme which are 
designed to return the scheme to a fully funded position by April 2020.
Deferred taxation
Group Company
Movement in net deferred taxation during the year
 2013
£000
2012
£000
 2013
£000
2012
£000
Net asset brought forward  (923)  (678)  (873)  (563) 
Pension provision movement (204)  (223)  (204)  (223) 
Movement relating to cash flow hedges (102)  120  —  — 
Movement on other temporary differences 64  (56)  4  3 
Movement relating to share options 104  (150)  104  (150) 
Movement on change in corporation tax rate 44  64  38  60 
 (1,017)  (923)  (931)  (873) 
Of the total deferred tax credit of £94,000 (2012: £245,000), a charge of £116,000 (2012: £38,000) was recognised within the income statement, a credit of 
£314,000 (2012: credit of £133,000) was recognised within other comprehensive income and a charge of £104,000 (2012: credit of £150,000) recognised 
within the statement of changes in equity.
19 SHARE CAPITAL
 2013
£000
2012
£000
Allotted, called up and fully paid 
7,958,126 (2012: 7,949,536) Ordinary shares of 25p 1,990  1,987 
During the year 8,590 shares (2012: 141,508) were issued to Directors to satisfy share options at nil (2012: nil) cost.
During the year 273,220 share options lapsed (2012: 357,334), nil were granted (2012: nil) and 539,078 (2012: nil) were forfeit.
On 11 July 2012 a share placement of 370,370 ordinary shares with Diverse Income Trust plc occurred for a total consideration of £500,000. As a result 
share capital increased by £92,593 and share premium by £407,402. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
64
20 SHARE-BASED PAYMENTS
The Company had three share option schemes used to incentivise the Directors of the Group and certain subsidiary company Directors. Details of the 
two equity settled schemes used to incentivise the Directors of the Group are set out in the Remuneration Committee Report on page 29.
In addition, cash settled options were issued to certain key managers within the business under a phantom share option scheme. The options became 
exercisable in February 2013 subject to the satisfaction of performance conditions set by the Remuneration Committee of the Company. During the year 
all cash settled options were forfeit due to recipients leaving the Group.
Under all schemes, 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. 
Relevant options outstanding during the year were as follows:
Weighted average
No. of 
options
Exercise 
price (p)
Remaining 
contractual 
life (years)
At 31 March 2011 1,845,595 43.7 7.2 
Lapsed (357,334) 36.3 5.0
Exercised (141,508)  —  — 
At 31 March 2012 1,346,753 50.3 7.0 
Lapsed (273,220) 51.2 6.7
Forfeited (539,078) 48.2 5.1
Exercised (8,590) 52.8 n/a
At 31 March 2013 525,865 52.8 3.7
525,865 (2012: Nil) shares were exercisable at the end of the year.
The market price at date of share exercise during the year was 119.5p (2012: 132p).
Based on the following assumptions at 31 March 2013, the total fair value of options was £34,000 (2012: £232,000), of which £11,000 was credited to the 
income statement (2012: charge of £113,000). The fair value of options granted in the year was £nil (2012: £nil). The exercise price of options as at  
31 March 2013 is 52.8p (2012: range between nil p to 52.8p).
The mid-market price of the shares at 31 March was 102p (2012: 144p) and during the year ranged between 187.5p and 102p (2012: between 93.5p  
and 160p).
419,078 options in favour of Mark Bache were forfeited following his removal from the Board in addition to 120,000 options forfeited following certain 
employees leaving the Group.
The total credit for the year of £69,000 (2012: charge of £148,000) is split £58,000 (2012: £35,000) for cash settled options and £11,000 (2012: £113,000) for 
equity settled options. A liability of £nil (2012: £58,000) is included for the cash settled options at the year end.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
65
Financial Statements
21 FIXED ASSET INVESTMENTS
£000
Shares in subsidiary undertakings
Cost at 1 April 2012 and 1 April 2013 8,159 
 
Wholly owned operating subsidiaries Principal activity
Chamberlin & Hill Castings Ltd Manufacture and sale of engineering castings
Russell Ductile Castings Ltd Manufacture and sale of engineering castings
Exidor Ltd Manufacture and sale of architectural hardware
Petrel Ltd Manufacture and sale of lighting, switchgear and electrical installation products
 
The Company owns 100% of the issued ordinary share capital of the above companies, all of whom operate principally in England and Wales. 
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 2013 was 
£276,000 (2012: £286,000) plus £200,000 of financing cost (2012: £79,000). 
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 £276,000 (2012: £286,000). The notes below relate to the defined benefit scheme.
The actuarial liabilities have been calculated using the Projected Unit method. The major assumptions used by the actuary were (in nominal terms):-
At 31 March
2013
At 31 March
2012
At 31 March
2011
Rate of increase in salaries n/a n/a n/a
Rate of increase of pensions in payment —  post 1997 accrual only 3.2% 3.1% 3.4%
Discount rate 4.2% 4.7% 5.5%
Inflation assumption — RPI 3.3% 3.1% 3.4%
Inflation assumption — CPI 2.2% 2.0% 2.9%
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.
2013
Years
2012
Years
Current pensioners at 65 — male 20.5 20.4 
— female 23.2 23.2 
Future pensioners at 65 — male 21.9 21.8 
— female 24.6 24.5
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 has been renegotiated with 
the Trustees and with effect from 1 April 2013 will increase to £26,782 per month (previously £26,217 per month), with a 3% annual increase thereafter, 
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 2014 are £321,000. 
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. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
66
22 PENSION ARRANGEMENTS continued
The assets and liabilities of the scheme and the expected rates of return were:
2013 2012
 Rate of
return
%
Value
£000
  Rate of
return
%
Value
£000
Equities/diversified growth fund 6.50 6,236 6.60 6,039 
Gilts 3.00 4,584 3.10 4,209 
Bonds 4.20 1,083 4.70 962 
Property 6.00 1,101 6.10 1,104 
Insured pensioner assets 4.20 58 4.70 53 
Cash 0.50 75 0.50 106 
Market value of assets  13,137  12,473 
Actuarial value of liability (17,050)  (15,534) 
Recoverable deficit in scheme (3,913)  (3,061) 
Related deferred tax asset 900  735 
Net pension liability (3,013)  (2,326) 
Recognised as finance cost
Year to
31 March
 2013
£000
Year to
31 March
2012
£000
Expected return on pension scheme assets 514  702 
Interest on pension liabilities (714)  (781) 
Net return disclosed in finance cost (200)  (79) 
Analysis of amount recognised in consolidated Statement of other Comprehensive Income
Year to
31 March
 2013
£000
Year to
31 March
2012
£000
Actual return less expected return on assets 441  (222) 
Other actuarial loss on liabilities (1,497)  (984) 
Actuarial loss recognised in the Statement of other Comprehensive Income (1,056)  (1,206) 
Cumulative actuarial losses recognised in the Statement of other Comprehensive Income (3,030)  (1,974) 
The cumulative amount of actuarial gains and losses recognised since 1 January 2004 in the Group statement of other comprehensive income is a loss 
of £3,030,000 (2012: loss of £1,974,000). 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.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
67
Financial Statements
22 PENSION ARRANGEMENTS continued
Year to
31 March
 2013
£000
Year to
31 March
2012
£000
Actual gain on plan assets 955  480 
Movement in deficit during the year
Year to
31 March
 2013
£000
Year to
31 March
2012
£000
Deficit in scheme at beginning of year (3,061) (2,202) 
Movement in year:
Employer contributions 404  426 
Net expected return on assets (200) (79) 
Actuarial loss (1,056) (1,206) 
Deficit in scheme at end of year (3,913) (3,061) 
Movement in scheme assets
Year to
31 March
 2013
£000
Year to
31 March
2012
£000
Fair value at beginning of year 12,473  12,432 
Expected return on scheme assets 514  702 
Actuarial (losses)/gains 441  (222) 
Employer contributions 404  426 
Benefits paid (695)  (865) 
Fair value at end of year 13,137  12,473 
Movement in scheme liabilities
Year to
31 March
 2013
£000
Year to
31 March
2012
£000
Benefit obligation at start of year 15,534  14,634 
Interest cost 714  781 
Actuarial loss  1,497  984 
Benefits paid (695)  (865) 
Benefit obligation at end of year 17,050  15,534  22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
68
22 PENSION ARRANGEMENTS continued
Experience gains and losses
Year to
31 March 
2013
£000
Year to
31 March 
2012
£000
Year to
31 March 
2011
£000
Year to
31 March 
2010
£000
Year to
31 March 
2009
£000
Difference between expected and actual 
return on scheme assets
£000
% of assets
441
3.4%
(222)
(1.8)%
(185)
(1.5)%
2,423
19.6%
(3,118)
(31.8)%
Experience gains on scheme liabilities £000 —  —  100  —  — 
% of liabilities —  — 1.0% —  — 
Other (gains)/losses on scheme liabilities £000 1,497  984 (126) 2,995 2,136 
% of liabilities 8.8% 6.3% (0.9)% 20.3% 18.3%
Net (losses)/gains £000 (1,056) (1,206) (59) (572) (982)
% of liabilities (6.8)% (7.8)% (0.4)% (3.9)% (8.4)%
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 2013 amounted to £nil (2012: £nil).
24 FINANCIAL COMMITMENTS
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Capital expenditure
Contracted for but not provided in the accounts 88  47  25  19 
Lease commitments
The Group had total outstanding commitments under operating leases as follows:
Group
 2013
£000
2012
£000
Future minimum payments due:
Not later than one year 434  356 
After one year but not more than five years 1,578  1,110 
After five years 26  270 
 2,038  1,736 
Leases on land and buildings comprise the lease for the Leicester foundry (£270,000 per annum with an end date, subject to earlier termination, of  
31 March 2018) and the lease for the premises of Petrel Limited (£60,000 per annum with an end date of 20 August 2019).
The lease on the Leicester foundry is terminable by the Company only on 12 months notice. The lease on Petrel’s premises is terminable by the Company 
on 6 months notice prior to 20 August 2014.
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
69
Financial Statements
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.
The carrying amount of financial assets and financial liabilities are not materially different to their fair value.
The Company is only exposed to interest rate 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 £942,000 (2012: £1,062,000). 
Because 80% of the Euro debtors are hedged, the impact on net monetary assets of a 5% change in the Euro/Sterling exchange rate would not be material 
to the P&L.
At 31 March 2013, 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 movement being recognised 
directly in other comprehensive income through the statement of comprehensive income. If these contracts were not in place and the Euro/Sterling 
exchange rate moved by plus or minus 5% the corresponding gain/loss to equity would be £296,000 (2012: £368,000).
A risk to the Group relates to ineffective hedges where by highly probable sales do not occur and the Group is over hedged against those particular sales. 
During the year a number of forward contracts were identified as being ineffective. As such a charge of £69,000 was taken to non-underlying items in the 
income statement where this would normally have gone through equity in the hedge reserve. This represents the fair value movement since the interim 
date, the date where effectiveness was last achieved.
Contracted
amount
(Euros 000)
Weighted
 average
contract
rate
Contracted 
amount
£000
Weighted
amount at 
year end rate
£000
Unrealised 
gain/(loss)
£000
At 31 March 2013 7,700 1.237 6,226  6,514  (288) 
At 31 March 2012 8,950 1.157 7,735  7,460  275 
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 £5,000 
reduction in profit before tax (2012: £8,000). An equivalent decrease in rates would increase profit before tax by £5,000 (2012: £8,000).
An analysis of interest bearing financial assets and liabilities is given below.
Cash and cash equivalents/(bank overdraft)
Group Company
 2013
£000
2012
£000
 2013
£000
2012
£000
Bank overdraft (Sterling denominated) (611)  (1,579)  (3,826)  (3,055) 
Bank overdraft (Euro denominated) (370)  21  —  — 
 (981)  (1,558)  (3,826)  (3,055) 
Balances outstanding on the Group’s overdraft facility are subject to floating rate interest and are repayable on demand. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
70
25 DERIVATIVES AND FINANCIAL INSTRUMENTS continued
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.
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.
The bad debt charge for the year was £152,000 (2012: £231,000).
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. There are no material 
differences between the fair values and carrying values of the financial assets and liabilities.
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 which is 
not subject to financial covenants, and to fund acquisitions and significant capital projects through the use of longer term funding including bank loans 
and equity. The Group’s £5.0m overdraft facility is renewable annually and was renewed post year end with the next date for renewal of May 2014. 
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 2 techniques.
The table below summarises the maturity profile of the Group’s financial liabilities at 31 March 2013 and 31 March 2012:
Non-derivative financial liabilities On demand
Less than
3 months
3 to 12
months Total
At 31 March 2013
Bank overdraft 981  —  —  981 
Trade and other payables —  5,522  —  5,522 
 981  5,522  —  6,503 
At 31 March 2012
Bank overdraft 1,558  —  —  1,558 
Trade and other payables —  6,140  —  6,140 
 1,558  6,140  —  7,698 
NOTES TO THE ACCOUNTS continued
at 31 March 2013 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
71
Financial Statements
25 DERIVATIVES AND FINANCIAL INSTRUMENTS continued
The gross undiscounted future cashflows are analysed as follows:
Derivative financial liabilities On demand
Less than
3 months
3 to 12
months Total
At 31 March 2013
Foreign Exchange forward contracts —  1,967  4,547  6,514 
 —  1,967  4,547  6,514 
At 31 March 2012
Foreign Exchange forward contracts —  1,912  5,548  7,460 
 —  1,912  5,548  7,460 
Capital management
The Group defines capital as the total equity of the Group, which at the year end is £8,293,000 (2012: £9,043,000). The Group objective for managing 
capital is to deliver competitive, secure and sustainable returns to maximise long-term shareholder value. Chamberlin is not subject to any externally-
imposed capital requirements and there are no financial covenant restrictions on the Group’s overdraft facility. 
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 of less than 50% provides an efficient capital structure and an appropriate level of financial flexibility. At 31 March 2013 the net debt 
ratio was 12% (2012: 17%).
It is the Group’s policy to pay progressive dividends that are appropriately covered by earnings.
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
 2013
£000
2012
£000
 2013
£000
2012
£000
Short-term employee benefits (including employer’s NI) 1,220  1,501  580  797 
Termination costs (including employer’s NI) 208  —  80  — 
Share-based payments (69)  148  (11)  113 
Pension contributions 65  70  29  32 
 1,424  1,719  678  942 
Key management, other than Directors of the Company, comprise the Managing Directors and Finance Directors of the main operating subsidiaries and 
are included in Group figures above.
Details of key management share options are disclosed in note 20. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
72
NOTICE OF ANNUAL GENERAL MEETING
Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only those members registered on the Company’s 
register of members at:
◗ ◗ 11.00am on 16 July 2013; or,
◗ ◗ If this Meeting is adjourned, at 10.00am on the day two days prior to the adjourned meeting, shall be entitled to attend and vote at the AGM.
Notice is hereby given that the Annual General Meeting of the Company will be held on Thursday 18 July 2013 at the Registered Office, Chuckery Road, Walsall 
at 2.00p.m. for the following purposes:
TO CONSIDER AND, IF THOUGHT FIT, TO PASS THE FOLLOWING RESOLUTIONS AS ORDINARY RESOLUTIONS:
1. To receive and adopt the Report of the Directors, Annual Accounts and Report of the Auditors for the year ended 31 March 2013 (Resolution 1).
2.  To declare a Final Dividend for the year ended 31 March 2013 of 2.0 pence per ordinary share of 25 pence each in the capital of the Company 
(“Ordinary Shares”) to be paid on 26 July 2013 to members whose names were on the register of members at the close of business on 5 July 2013 
(Resolution 2).
3. To re-elect as a Director Keith Butler-Wheelhouse (Resolution 3).
4. To re-elect as a Director Tim Hair (Resolution 4).
5. To re-elect as a Director Keith Jackson (Resolution 5).
6. To re-elect as a Director Alan Howarth (Resolution 6).
7. To approve the Directors’ Remuneration Report for the year ended 31 March 2013 (Resolution 7).
8. To reappoint Ernst & Young LLP as Auditors of the Company and to authorise the Directors to fix the remuneration of the Auditors (Resolution 8).
9. 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 £663,177 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 18 October 2014, 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 9).
TO CONSIDER AND, IF THOUGHT FIT, TO PASS THE FOLLOWING RESOLUTIONS AS SPECIAL RESOLUTIONS:
10. That, subject to the passing of Resolution 9 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 9 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):
ii. 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
iii. 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 10(a) of this Resolution, up to an aggregate nominal amount of £99,476, 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 18 October 2014, 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 10). 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
73
11. 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 on such terms and in such manner as the Directors may from time to 
time determine provided that:
(a) the maximum aggregate number of Ordinary Shares which may be purchased is 795,812;
(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 per cent. 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 18 October 2014, 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 11).
By order of the Board
Tim Hair
Company Secretary
21 May 2013
Chuckery Road
Walsall
WS1 2DU
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 2:00pm on 16 July 2013 (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.
A shareholder which is a corporation may authorise one or more persons to act as its representative(s) at the meeting. Each such representative may exercise (on 
behalf of the corporation) the same powers as the corporation could exercise if it were an individual shareholder, provided that (where there is more than one 
representative and the vote is otherwise than on a show of hands) they do not do so in relation to the same shares.
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 9, 10 and 11 is set out in the Report of the Directors on page 24. 
Members should notify the Registrars without delay of any change of address. 22531.04    18 June 2013 12:20 PM    Proof 6
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
74
SHAREHOLDER INFORMATION
DIRECTORS
Keith Butler-Wheelhouse (Non-executive Chairman)
Tim Hair (Chief Executive)
Keith Jackson (Non-executive)
Alan Howarth (Non-executive)
COMPANY SECRETARY
Tim Hair
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
BANKERS
HSBC Bank plc,
Birmingham
REGISTRARS
Neville Registrars Limited,
Neville House,
18 Laurel Lane,
Halesowen,
West Midlands B63 3DA 22531.04    18 June 2013 12:20 PM    Proof 6
www.chamberlin.co.uk
chamberlin plc
Annual Report and Accounts for the year ended 31 March 2013 Stock code: CMH
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 570050
Fax: 01543 573534
www.exidor.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 22531.04    18 June 2013 12:20 PM    Proof 6
Visit us online
For more information on Chamberlin Group 
operations please visit our website at
www.chamberlin.co.uk
Chuckery Road, Walsall, West Midlands, WS1 2DU
T: 01922 707100  F: 01922 638370
E: plc@chamberlin.co.uk