Chamberlin & Hill plc 
Chamberlin & Hill plc
Chuckery Foundry, Walsall, West Midlands WS1 2DU
Tel: 01922 721411   Fax: 01922 638370
website: www.chamberlin.co.uk
email: plc@chamberlin.co.uk
Report and Accounts
26178 Cover  28/6/06  5:52 pm  Page 1
Chamberlin & Hill plc     Report and Accounts 2006 Contents
Highlights 1
Activities and Markets 2
Chairman’s Statement 4
Chief Executive’s Review 6
Financial Review 8
Report of the Directors 10
Corporate Governance 16
Directors’ Remuneration Report 19
Independent Auditors’ Report 23
Consolidated Income Statement 26
Consolidated Statement of Recognised
Income and Expense 27
Parent Company Statement of Recognised
Income and Expense 27
Consolidated Balance Sheet 28
Parent Company Balance Sheet 29
Consolidated Cash Flow Statement 30
Parent Company Cash Flow Statement 31
Notes to the Accounts 32
Directors and Advisors 66
Notice of Annual General Meeting 67
Manufacturing Units
Principal activities and markets
CHAMBERLIN & HILL CASTINGS LTD
Walsall Foundry
Chuckery Road
Walsall, WS1 2DU
Tel: 01922 721411   Fax: 01922 638370
Small repetition grey iron castings, principally for the automotive
sector and hydraulic applications.
RUSSELL DUCTILE CASTINGS LTD
Dawes Lane
Scunthorpe
Tel: 01724 862152   Fax: 01724 280461
Bonchurch Street
Leicester LE3 5EP
Tel: 0116 299 2000   Fax: 0116 299 8844
Castings from 1kg to 5,000kg in ductile, ADI, alloyed and grey 
iron principally for use in commercial vehicles, materials handling,
power generation, industrial and railway applications.
PFP ELECTRICAL PRODUCTS LTD
Fortnum Close, Mackadown Lane
Kitts Green, Birmingham B33 0LB
Tel: 0121 783 7161   Fax: 0121 783 5717
Products associated with cable management. Lighting and switchgear
associated with petrochemicals and construction applications.
FRED DUNCOMBE LTD
Progress Drive
Cannock, WS11 0JE
Tel: 01543 578661   Fax: 01543 570050
Emergency exit equipment and traditional architectural hardware
directed mainly at the DIY and construction markets.
Chamberlin & Hill plc is a leading foundry
and engineering group providing specialised
castings and safety/security products to a wide
variety of industries across the world
Welcome to
Chamberlin & Hill plc
of castings in:
Grey Iron
Malleable Iron
Ductile Iron
Austempered Iron
Ni Hard
Ni Resist
Stainless Steel
Carbon Steel
Alloy Steel
Alloyed Irons
Chamberlin & Hill
Castings Ltd
26178 Cover  28/6/06  5:52 pm  Page 3
Preferred supplier 1 Annual Report 2006  CHAMBERLIN & HILL plc
Year to Year to
31 March 31 March
2006 2005
£000 £000
Turnover 41,435 41,970
Operating profit before exceptional items 2,398 2,071
Profit before taxation 2,368 2,192
Basic earnings per share (note 11) 22.5p 20.9p
Underlying earnings per share (note 11) 21.5p 18.1p
Dividends per share (paid and proposed) 11.85p 11.85p
 Operating profit before
exceptional items up 15.8%
to £2.4m
 Underlying earnings per share
up 18.6% to 21.5p
 Dividend maintained at
11.85p for the year
 Dividend cover on underlying
earnings increased from 1.5 to
1.8 times
 Total equity strengthened by
£1.6m to £13.5m 
 Pension deficit reduced by
£2.8m to £0.5m
Highlights
for the year ended 31 March 2006
06
Turnover (£m) 
41.4
03 04 05 03 04 05 06
Operating profit (£m) 
2.4
06
Basic earnings per share (pence)
22.5
03 04 05
“. . . we anticipate another year of progress and will continue to
seek new and relevant opportunities to further enhance earnings“
26178 Pre  28/6/06  6:54 pm  Page 1 CHAMBERLIN & HILL plc  Annual Report 2006 2
Activities and Markets
hamberlin & Hill Castings
Limited and Russell Ductile
Castings Limited, come
together to provide a total castings
capability and market leading
service to customers throughout the
UK, mainland Europe and the rest
of the World.
Based on over a century of world
class experience and expertise,
customers specialising in areas
ranging from automotive to power
generation and military to light
engineering, have come to rely 
on us to satisfy their requirements
for iron castings and fully 
finished components.
Our Light Castings Division, based
at the Chamberlin & Hill foundry
at Walsall in the West Midlands,
specialises in smaller castings up to
approximately 30kg, often with
complex shapes and fine tolerances
requiring highly skilled manufacturing
methods. These castings and
components are predominantly
supplied into the automotive industry
for such applications as turbochargers,
hydraulic pumps and power steering
systems. The strong growth in the
use of turbochargers in European
vehicle manufacture in particular
has given us the opportunity to
demonstrate our industry leading
capabilities in this area. 
The Heavy Castings Division,
trading as Russell Ductile Castings,
based in Leicester and Scunthorpe,
produces low volume specialised
castings in a variety of iron types,
ranging from under 30kg to
5,000kg, mainly for use in industrial
applications such as power
generation, steel production,
railways and construction
throughout the World. Demand
for machined and finished
components rather than raw
castings is becoming increasingly
prevalent, and we are responding
by broadening our capability to
provide a “one-stop shop” to
satisfy our customers’ requirements.
Chamberlin & Hill is a leading foundry and engineering group 
providing specialised castings and safety/security products to
a wide variety of industries.
Castings
C
26178 Pre  28/6/06  6:54 pm  Page 2 Annual Report 2006  CHAMBERLIN & HILL plc 3
Engineering
he Engineering Division
of the Chamberlin & Hill
Group currently comprises
Fred Duncombe Limited and 
PFP Electrical Products Limited.
Fred Duncombe, based in Cannock,
Staffordshire, is a long established
and leading supplier of high quality
emergency exit fittings, architectural
ironmongery and builders’ hardware
products. Its EXIDOR emergency
exit product range is a leader in the
exit and security door equipment
market with an expanding range of
equipment to satisfy a variety of
access applications. The Webb Lloyd
range of top quality door furniture
products, predominantly used in
high class office developments,
restaurants, colleges and a wide
variety of private and publicly 
used buildings, is another key 
part of the Fred Duncombe 
product portfolio.
PFP Electrical Products, based 
near the National Exhibition 
Centre to the East of Birmingham,
concentrates on the development
and production of certified lighting
and control systems for use in
hazardous environments, utilising 
its many years of experience in
manufacturing to supply high
quality, innovative lighting solutions
to the petrochemical and other
industries. The same experience 
and skill is applied to its cable
management product ranges which
are used in both domestic and
industrial environments.
T
26178 Pre  28/6/06  6:54 pm  Page 3 CHAMBERLIN & HILL plc  Annual Report 2006 4
Chairman’s Statement
“
The Group’s net
operating margin rose
to 5.8% compared to
4.9% previously.
”
I am pleased to report that on
turnover broadly in line with the
previous year at £41.44m (2005:
£41.97m) operating profit before
exceptional items increased 15.8%
to £2.40m (2005: £2.07m), and
pre-tax profit before exceptional
items was up 19.2% at £2.26m
(2005: £1.90m). As at the interim,
the results are presented under
International Financial Reporting
Standards (“IFRS”) which have
affected both the content and
presentation of these and 
the comparative 2005 figures.
Reconciliations to previously
reported results are given in 
note 28 to the accounts.
Fully diluted underlying earnings
per share rose 18.6% to 21.5p
(2005: 18.1p). The Board is
recommending an unchanged final
dividend of 8.0p per share (11.85p
total for the year) payable on 
28 July 2006 to shareholders on the
register at the close of business on
7 July 2006. Dividend cover has
now been restored to 1.8 times,
based on underlying earnings.
In the Interim Report we
announced our intention to close
the Bloxwich foundry. This activity
was undertaken speedily and
effectively, and while it was
responsible for most of the
exceptional restructuring costs
reported of £0.93m this was 
more than offset by an exceptional
gain of £1.03m on the sale of 
the site.
The Interim Report also stated that
we were examining ways to
mitigate the deficit in our final
salary pension scheme, and
following the sale of the Bloxwich
site the Group made a payment 
of £1.50m into the Chamberlin 
& Hill Staff Pension Scheme. 
This, together with favourable
investment returns, reduced the
Group’s defined benefit pension
scheme deficit to £0.49m (2005:
£3.32m) at the year end. 
The Group’s balance sheet remains
very strong with net cash at the
year end of £0.59m (2005: net
debt of £0.04m) after capital
expenditure of £1.44m. The equity
attributable to shareholders at 
31 March 2006 rose to £13.54m
(2005: £11.94m).
The Group’s net operating margin
rose to 5.8% compared to 4.9%
previously. The substantial increases
in the prices of ferrous metals and
metallurgical coke endured in the
previous year subsided somewhat,
although large increases in the
prices paid for electricity and gas
26178 Pre  28/6/06  6:54 pm  Page 4 5
from last autumn again put margins
under pressure until fully recovered
from customers.
Having completed the first part of
our foundry integration programme
with the closure of Bloxwich and
the relocation of its workload
elsewhere in the Group, we
anticipate improved margins for
grey iron castings in the year
ahead. We have now embarked 
on the redevelopment of our
Scunthorpe foundry where we
intend to relocate the business
currently in Leicester by 2008, and
believe that the merger of Russell
Castings and Ductile Castings will
provide further opportunities for
margin enhancement.
In our Engineering Division
advances were made in redefining
our market opportunities, offshore
sourcing and new product
development, but the overall result
did not reflect the progress made in
the Foundry Division. Since the
year end a reorganisation has been
implemented in Fred Duncombe,
aimed at better exploiting that
company’s opportunities. 
Barrie Williams will stand down as
Chief Executive following the
Annual General Meeting on 28 July,
in preparation for his retirement 
in September. Barrie joined
Chamberlin & Hill in 1965,
becoming a Director in 1976 and
Chief Executive in 1995. During
this period he has made an
outstanding contribution to the
Group, and on behalf of the Board
I would like to record our sincere
thanks to him and to wish him a
long and happy retirement. I should
also like to thank him personally for
the support he has given me since 
I became Chairman.
As we announced on 20 March
2006, I am delighted to welcome
Tim Hair to the Board as Chief
Executive Designate and look
forward to working with him to
build further on the sound business
left by Barrie.
Current activity levels at our Walsall
Foundry are much improved and
elsewhere markets appear to be
running at or around predicted
levels. Current trading is in line with
our expectations. If this situation is
maintained we anticipate another
year of progress and will continue
to seek new and relevant
opportunities to further enhance
earnings.
Tom Brown
Chairman
15 June 2006
Annual Report 2006  CHAMBERLIN & HILL plc
Chairman’s Statement
26178 Pre  28/6/06  6:54 pm  Page 5 Chief Executive’s Review
....we continue to
invest in process
improvement, to
increase productivity
and energy
efficiency....
”
At this time last year I commented
that the focus for the year ahead
was to improve our margins. It is
pleasing now to report that some
progress was made in the year with
the return on sales improving from
4.9% to 5.8% on turnover broadly
in line with the previous year. The
scope of the improvement was held
back for two reasons. Firstly the
large rise in energy costs where we
were particularly affected by
increases in gas and electricity
prices. Increased costs always have
a time lag before recovery, and
affect margins accordingly. The
second element was that we saw a
reduction in demand during the
winter months. This has now
largely recovered, and we will be
seeking to make further progress
with margins in the year ahead.
To achieve this we continue to
invest in process improvement, to
increase productivity and energy
efficiency, and in new product
development and environmental
improvement. In the year just
ended capital expenditure was
£1.44m. Our success in improving
our efficiencies can be seen below,
where the increase in sales per head
has improved by some 45% in a 
10 year period.
Foundries
Bloxwich Foundry ceased
production at the end of January,
and the sale of the site was
completed in March. From 1 April
2006, the Light Castings Division is
now based in Walsall trading as
Chamberlin & Hill Castings Limited,
the business and assets having
been hived down from Chamberlin
& Hill plc on 31 March 2006. The
transfer of the grey iron parts from
Bloxwich to Walsall was achieved
speedily and efficiently as was the
commissioning of the 2013
Disamatic moulding machine. For
the Light Division in the year
turnover fell by 9% while the
return on sales improved by 1.5%
despite the inevitable disruption
involved in the transfer of plant 
and equipment.
Following the rationalisation to one
site we look forward to further
improvement in net margins in the
year ahead. Current levels of
activity in the automotive sector
have recovered from the dip seen
earlier in the year. We continue to
see growth opportunities in our
market for turbocharger castings
for diesel engines, particularly for
those associated with improved
CHAMBERLIN & HILL plc  Annual Report 2006 6
“
GROUP SALES PER HEAD
£85,000
£75,000
£65,000
£55,000
£45,000
£35,000
£25,000
1996/97 1997/98 1998/99 1999/2000 2000/2001 2001/2002 2002/2003 2003/04 2005/06 2006/07
26178 Pre  28/6/06  6:54 pm  Page 6 emission levels. Opportunities
taken following the recent closure
of competitors have led to
increased output levels over recent
weeks. Given reasonable stability in
material and energy prices we
expect Walsall to continue to
perform well in the year ahead.
In preparation for consolidation of
the Heavy Castings Division onto
one site in Scunthorpe, Russell
Castings acquired the business and
assets of Ductile Castings and its
name was changed to Russell
Ductile Castings Limited from 
1 April 2006. Turnover in 2005/06
was broadly in line with the
previous year, while the return on
sales improved by 1.5%. The hand-
mould section was transferred from
Leicester to Scunthorpe at the year
end. Activity levels, which fell back
during the winter months, are
slowly improving as a major sales
campaign to raise turnover in the
division begins to bear fruit. As in
the Light Castings Division, the
volatility of raw materials and
energy costs remains the greatest
threat to performance.
During the year plans have been
developed and property acquired to
extend the Scunthorpe site in order
to complete the integration of the
business from Leicester in 2008.
Foundry investment will therefore
be largely concentrated at
Scunthorpe in the next two years.
In the year to 31 March 2007 
we will be investing in the 
site infrastructure and services, 
and the construction of a new 
melting facility.
Engineering
Production value fell slightly in our
engineering businesses to £7.8m
(2005: £8.0m) and the return on
sales fell back some 1.6%, the
reduction being consistent both in
our lighting business, PFP Electrical
Products, and at Fred Duncombe
(“FD”). Price competition and
lower gross margins at PFP and
higher fixed costs at FD were
responsible, the latter as a result of
increasing our sales personnel. In
both businesses we are developing
off-shore sourcing of both parts
and products in order to remain a
low cost supplier to our markets.
We are looking this year for
increased sales from new products
and improved margin. Our priority
is to ensure that we respond quickly
to changing customer needs to
maintain our market positions.
The Future
The past year has seen good
progress with our programme of
foundry rationalisation. Our aim
now is to develop our foundry in
Scunthorpe into a modern and
efficient facility that will meet the
market needs for heavy iron
castings for years to come. We also
look for the benefit of the work
already completed at Walsall to
show through.
In engineering we will seek to make
more rapid progress in the
reduction of our cost base and to
increase sales from our new
product ranges. 
As always, our people remain our
most important asset. We will
endeavour to continue developing
their skills, recruiting where
necessary to strengthen our
excellent team. In this regard I
welcome our new Chief Executive
Designate, Tim Hair, who will take
over from me following the Annual
General Meeting in July. I am quite
sure that Tim will take the
Company forward for all its
stakeholders.
After 41 years with the Company
and 12 years as Chief Executive, I
would like to record my sincere
thanks to my board colleagues and
all our employees, past and
present, who have given so much
support both to Chamberlin & Hill
and to me personally. I look
forward with pleasure to seeing
further progress in the years 
to come.
Barrie Williams
Chief Executive
Chief Executive’s Review
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 7
26178 Pre  28/6/06  6:54 pm  Page 7 Financial Review
Figures for both years covered by
this report have been consistently
prepared in accordance with
applicable International Financial
Reporting Standards (“IFRS”) 
for the first time in 2006.
Reconciliations to previously
reported results and balances were
given in the Interim Report 2005
published in December 2005 and
are summarised in note 28 to 
these accounts.
The financial position of the Group
has continued to improve in the
year to 31 March 2006. The key
contributing factors were the
improved profitability of the
foundry businesses, good cash
generation and the reduction in 
the pension fund liability through
strong asset performance and a
significant additional pension
contribution.
Group reserves increased by
approximately £1.6 million in the
year as set out in the Statement 
of Changes in Equity in note 20 to
the accounts, comprising profit
after tax of £1.66m less dividends
paid of £0.87m, plus actuarial 
gains within the defined benefit
pension scheme, net of deferred
tax, of £0.80m.
Cash improved from an overdraft
of £0.04m at the start of the year to
£0.59m net cash at 31 March
2006, the Group having made both
capital expenditure of £1.44m and
an additional special contribution of
£1.50m into the pension scheme.
This was achieved both from good
operating performance (including
reductions in working capital
through improved debtor
collections) and the net cash
generated from the closure of the
Bloxwich foundry and sale of the
site in the last quarter of the year. 
Results
Group operating profit for the year,
before exceptional items, increased
to £2.40m (2005: £2.07m) as a
result of an improved performance
from the Foundries Division, both
in light automotive castings and to
a greater extent in heavier industrial
castings. A segmental analysis of
sales, profits and assets by division
is given in note 3 to the accounts.
Turnover from the Foundries
Division was slightly down on the
previous year at £33.64m (2005:
£34.00m), due partly to the closure
of the Bloxwich foundry and partly
to an easing of demand in the
second half of the year. Despite
this, operating profit increased,
both in total and as a percentage of
sales. Demand picked up towards
the end of the financial year and
order books had recovered to more
normal levels by the year end. 
Substantial expenditure on the
development of a new design 
of turbocharger housing in
collaboration with one of our major
customers has been made in the
year and expenditure of £0.13m
has been capitalised as an internally
generated intangible asset.
Turbocharger parts are amongst the
products exported to Europe where
sales increased to £6.82m in the
year (2005: £5.47m).
The closure of the Bloxwich
foundry during the last quarter of
the year resulted from the
continuing change in product mix
within the foundries and our plans
to concentrate foundry production
ultimately on two sites, Walsall and
Scunthorpe, thus significantly
reducing the fixed cost base of the
division. The closure was self
financing as the unavoidable
redundancy and asset writedown
costs were more than offset by the
profit on the sale of the site, which
also contributed to the cash
generated in the year. The furnaces
and other plant will be utilised in
the development of the Scunthorpe
site. The exceptional net gain
relating to the closure is analysed in
note 22 to the accounts.
Relocation of the Leicester foundry
output to Scunthorpe will progress
in stages and is expected to be
completed in 2008. Capital
expenditure on infrastructure at the
Scunthorpe site increased in the
year and will increase further over
the next two years in preparation
for the move.
The operating performance of the
Engineering Division, comprising
CHAMBERLIN & HILL plc  Annual Report 2006 8
26178 Pre  28/6/06  6:54 pm  Page 8 PFP Electrical Products and 
Fred Duncombe, was below
expectations in the year with both
turnover and operating profit down
on the previous year as shown in
the segmental analysis in note 3 to
the accounts. 
Again, substantial development
expenditure into new products was
made in the year, principally 
the new 500 Series emergency 
exit device at Fred Duncombe.
Expenditure of £0.10m has 
been capitalised as an internally
generated intangible asset, which
along with the expenditure in the
foundries makes up the amount
shown in note 12 to the accounts.
Financing
Finance costs for the year were
£0.13m (2005: £0.17m) which
included £0.07m (2005: £0.11m) 
in respect of the pension scheme
funding. Other interest costs
remained at similar levels to the
previous year as the majority of the
increase in cash occurred in the last
quarter of the year. 
The net interest paid of £0.06m
(2005: £0.06m) represents an
average overdraft through the year
of approximately £1.1m, although
interest payable is affected by the
split of currencies in which the
balance is held. The majority of
balances are in sterling, but a Euro
balance is also maintained which
tends to fluctuate between
approximately £0.3m overdraft and
£0.3m balance in hand depending
on the timing of receipts and
maturity dates of forward currency
contracts. Exposure to changes in
interest rates is considered low and
no hedging is carried out.
The Group continues to use
forward currency contracts to
minimise the Group’s exposure to
exchange rate fluctuations, mainly
on Euros receivable on castings
exports. Approximately 80% of
expected Euro revenues are sold
forward each month, usually on 12
month contracts in order to give
reasonable certainty of sterling
revenues in the coming year from
Euro denominated sales. Remaining
Euros are dealt with on shorter
forward contracts or on the spot
market depending on the level of
balances held and an assessment 
of the market at that time. 
Details of contracts outstanding at
the year end are given in note 26 
to the accounts. These total €5.25m.
The Group was ungeared at the
year end but continues to maintain
a £3.50m overdraft facility with
HSBC plc to cover operating
requirements, and has substantial
borrowing capacity to fund further
expansion and acquisitions. 
Pensions
Under IFRS, full provision is made
for the actuarial deficit within our
defined benefit pension scheme.
Actions have been taken in
previous years to limit the Group’s
exposure to the scheme, which is
closed to new members and active
members now accrue 1/80th
benefits per year. 
During the year there has been a
substantial improvement in the
funding position of the scheme,
details of which are set out in note
23 to the accounts. A combination
of improvements in asset values
and a special contribution of
£1.50m by the Group into the
scheme has resulted in the actuarial
deficit reducing from £3.32m at 
the start of the year to £0.49m 
at the year end. When the
associated deferred tax asset is
taken into account the net deficit
was £0.34m.
In the light of the new regulatory
environment in which pension
schemes now operate, the Group
has also committed to a reduced
maximum period of 10 years within
which the scheme will be returned
to a fully funded position.
Contributions are being maintained
at a higher level than currently
required to achieve this target in
anticipation of the expected effect
of recent changes in predicted
mortality. The next full actuarial
valuation of the scheme is due to
be carried out in April 2007.
Simon Duckworth
Finance Director
Financial Review
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 9
26178 Pre  28/6/06  6:54 pm  Page 9 Report of the Directors
The Directors present their Annual Report and Accounts for the year ended 31 March 2006.
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 activities of the Company in the year to 31 March 2006 included both the production and sale of iron castings
and the Group administration function. At 31 March 2006, the foundry operations of the Company were sold to a
previously dormant 100% subsidiary, Phoenix Foundry (Bloxwich) Limited, which then changed its name to
Chamberlin & Hill Castings Limited.
Review of the business
A comprehensive analysis of the development and performance of the Company during the year, including
its future prospects, is included in the Chairman’s Statement on pages 4 and 5, Chief Executive’s Review on
pages 6 and 7 and the Financial Review on pages 8 and 9.
(a) Key Performance Indicators
Key Performance Indicators used by the Group in monitoring its performance and that of its underlying
businesses are set out below:
Year to Year to
31 March 2006 31 March 2005
Return on sales Foundries 6.9% 5.4%
Engineering 7.1% 8.7%
Group 5.8% 4.9%
Return on net assets Foundries 24.1% 15.6%
Engineering 12.2% 16.5%
Group 17.7% 17.3%
Sales per employee Foundries 80.5 75.7
(£’000) Engineering 66.7 64.3
Group 77.4 73.2
Calculations are based on numbers disclosed in the segmental analysis in note 3 to the accounts. Group ratios
for returns are based on operating profit before exceptional items.
(b) Employees
Staff numbers and associated costs are shown in note 5 to the accounts. The segmental split of the average
number of employees is as follows:
Year to Year to
31 March 2006 31 March 2005
Foundries 418 449
Engineering 117 124
Group 535 573
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. 
CHAMBERLIN & HILL plc  Annual Report 2006 10
26178 Pre  28/6/06  6:54 pm  Page 10 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 handicapped or 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 possible.
(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 was higher in 2005/06 than in the previous year due to major development
projects within both the foundry and engineering divisions. Expenditure expensed through the income
statement is shown in note 7 and expenditure capitalised in note 13 to the accounts.
Report of the Directors
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 11
26178 Pre  28/6/06  6:54 pm  Page 11 Report of the Directors
Continued
Dividends
The Directors recommend the payment of a final dividend of 8.0p per share payable on 28 July 2006 which,
together with the interim dividend of 3.85p per share paid on 19 December 2005, totals 11.85p for the year 
(2005: 11.85p).
Directors
Details of the Directors of the Company during the year and their interests in the shares of the Company are 
shown below. The interests of the Directors in share options are shown in the Directors’ Remuneration Report 
on pages 19 to 22.
Executive Directors
Barrie Williams
Aged 62, he joined the Company in 1965. Having spent some years as Works Manager of the Walsall foundry, 
he was appointed a Director in 1976, becoming Chief Executive in 1995. Barrie retires in September 2006.
Tim Hair
Aged 46, he was appointed as Chief Executive Designate on 5 June 2006. Tim was previously Managing Director
of Sterling Hydraulics Limited. He has wide ranging experience in engineering businesses and an outstanding record
of delivering increased shareholder value through operational performance.
Simon Duckworth
Aged 45, he joined the Company in July 2004 and was appointed Finance Director in November 2004. He was
previously Finance Director of Compass Software Group plc and has held senior financial positions in a number of
engineering groups since qualifying as a Chartered Accountant with Price Waterhouse in 1984.
Adam Vicary
Aged 38, he joined the Company in 1988 and was appointed to the Board in September 2001. Having spent three
years as Managing Director at Ductile Castings Limited, he now has Board responsibility for all foundry operations.
Non-Executive Directors
Tom Brown
Aged 57, Tom joined the Board in 2003 and was appointed independent Non-Executive Chairman on 1 March
2004. He is also a Non-Executive Director of Northgate plc and a director of a number of private companies. 
He was previously Group Chief Executive of United Industries plc and before that Group Managing Director 
of Fenner plc.
Keith Jackson
Aged 58, Keith was appointed a Director on 1 October 2005. Keith is Chairman of two defined benefit pension
schemes with combined assets of over £500m and 11,500 members and of one defined contribution scheme. He
is a governing member of Telford City Technology College Trust Limited, and a governing board member and
Finance Committee member of the Walsall City Academy Trust. He was previously a Divisional Finance Director
with Anglo American plc, and was Finance Director of Cape plc between 1989 and 1996. He is Chairman of Tynda
Forest Holdings Limited.
Nick Kuenssberg
Aged 63, Nick was appointed a Director in 1999. He is Chairman of Iomart Group plc and Canmore Partnership
Ltd, a director of Amino Technologies plc and RingProp plc, and Deputy Chairman of the Scottish Environment
Protection Agency. He has previously been Chairman of Dynacast International Limited and a director of Coats
Viyella plc, Scottish Power plc and Standard Life Assurance Company. He is Chairman of the Audit Committee and
of the Trustees of the staff pension scheme and is designated as the senior independent Non-Executive Director.
CHAMBERLIN & HILL plc  Annual Report 2006 12
26178 Pre  28/6/06  6:54 pm  Page 12 John Bather retired as a Non-Executive Director on 31 December 2005 after more than 40 years as a Director of
the Company. The Directors would like to express their thanks for the immense contribution which he made to the
Company over the years. All other Directors held office throughout the year, except Keith Jackson who was
appointed as a Director on 1 October 2005 and Tim Hair, who was appointed as a Director after the year end, on
5 June 2006. 
At the Annual General Meeting (“AGM”) to be held on 28 July 2006 (see the Notice of Annual General Meeting
on pages 67 and 68), Tim Hair and Keith Jackson (having been appointed since the last AGM) retire under Article
112 of the Company’s Articles of Association, and, being eligible, offer themselves for re-election. Nick Kuenssberg
retires by rotation and being eligible offers himself for re-election.
No Director had a material interest during the year in any significant contract with the Company or with any
subsidiary undertaking, and no indemnities had been granted to Directors in respect of liabilities or claims against
Group companies.
Directors’ shareholdings
Beneficial interests of the Directors in the shares of the Company, including those of their immediate families were:-
At 31 March 2006 At 31 March 2005 
or on retirement or on appointment
John Bather (retired 31/12/05) 22,300 771,018
Barrie Williams 50,000 50,000
Nick Kuenssberg 35,000 35,000
Tom Brown 20,000 20,000
Keith Jackson (appointed 1/10/05) 5,000 – 
Adam Vicary 3,000 2,000
Simon Duckworth 2,000 –
There have been no changes in the interests of the continuing Directors set out above between 1 April 2006 and
15 June 2006.
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 also be sought from shareholders to allow the directors to issue new
shares for cash to persons other than to existing members up a maximum nominal amount of £91,995.50. This sum
represents 367,982 ordinary shares of 25 pence each, being equivalent to 5% of the issued share capital of the
Company at 15 June 2006.
Authority to purchase own shares
At the Annual General Meeting in 2005, the Board was given authority to purchase and cancel up to 735,000 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, save that the
authority is now sought to allow the Company to purchase and cancel up to 735,900 of its own shares, again
representing just under 10% of its issued share capital at 15 June 2006. 
Report of the Directors
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 13
26178 Pre  28/6/06  6:54 pm  Page 13 Report of the Directors
Continued
The authority is sought by way of a special resolution, details of which are also included at item 9 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 8 and 9 in the notice of meeting on page 67.
Substantial shareholders
At 15 June 2006 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 % of Issued 
shares Share Capital
Rights and Issues Investment Trust PLC 1,000,000 13.59%
Schroder Institutional UK Smaller Companies Fund 560,397 7.61%
Henderson Global Investors 555,000 7.54%
Discretionary Unit Fund 500,000 6.79%
Framlington Monthly Income Unit Trust 400,000 5.44%
Brewin Dolphin Securities 369,065 5.01%
Perfecta Assets Ltd 275,000 3.74%
Morgan Stanley Quilter 223,800 3.04%
Statement of directors’ responsibilities 
The directors are responsible for preparing the Annual Report and the financial statements in accordance 
with applicable United Kingdom law and those International Financial Reporting Standards as adopted by the
European Union. 
The directors are required to prepare financial statements for each financial year which present fairly the financial
position of the Company and of the Group and the financial performance and cash flows of the Company and of
the Group for that period. In preparing those financial statements, the directors are required to:
 select suitable accounting policies and then apply them consistently;
 present information, including accounting policies, in a manner that provides relevant, reliable, comparable
and understandable information; and
 provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable
users to understand the impact of particular transactions, other events and conditions on the entity’s financial
position and financial performance; and
 state that the Company has complied with IFRS, subject to any material departures disclosed and explained
in the financial statements.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any
time the financial position of the Company and of the Group and enable them to ensure that the financial
statements comply with the Companies Act 1985 and Article 4 of the IAS Regulations. They are also responsible
for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
CHAMBERLIN & HILL plc  Annual Report 2006 14
26178 Pre  28/6/06  6:54 pm  Page 14 Going concern
After making appropriate enquiries, the directors consider that the Group has adequate resources to continue in
operation for the foreseeable future. In forming this view the directors have reviewed budgets and other financial
information. For this reason, they continue to adopt the going concern basis in preparing the accounts.
Directors’ statement as to disclosure of information to auditors
The directors who were members of the Board at the time of approving the Report of the Directors’ are listed
on page 66. 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 £450 (2005: £2,010). There were no political donations in the
year (2005: £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 2006 was 58 days (2005: 53 days) and that of the
Company was 58 days (2005: 47 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
Simon Duckworth
Secretary
15 June 2006
Report of the Directors
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 15
26178 Pre  28/6/06  6:54 pm  Page 15 Corporate Governance
Principles of good governance
The Financial Services Authority’s Listing Rules incorporate the Combined Code of Corporate Governance 
(“the Code”) applicable to companies with reporting periods commencing on or after 1 November 2003. 
The Company is committed to high standards of corporate governance and has applied the principles set out in
Section 1 of the Code as described below and in the Directors’ Remuneration Report, in a manner appropriate to
the size and nature of the Group.
The Group complied with the provisions set out in Section 1 of the Code throughout the year except for the
following matters, none of which is considered by the Board to be inappropriate given the size and nature of 
the Group:
 The Chief Executive, Barrie Williams, has a notice period in his service agreement which exceeds 12 months
as explained in the Directors’ Remuneration Report. Mr Williams is currently 62 and has a normal retirement
date of his 63rd birthday which falls in September 2006. His effective notice period at the date of this report
is therefore a little over 3 months. No other director has a service agreement which exceeds 12 months.
 The Board did not have in place during the year a formal and rigorous process of evaluation of its own
performance and that of its committees. Evaluation has historically been carried out by the Chairman and
Chief Executive, and evaluation of the performance of individual directors has also been carried out by the
Remuneration Committee. The introduction of a more formal evaluation process was considered during
2005/06 and it was concluded that the current arrangement was satisfactory.
 No formal process for whistle blowing was in place during the year, although an open door policy has always
been adopted in relation to employees voicing their concerns over aspects of the Group’s corporate
governance processes. As noted in section (i) on the Audit Committee below, the introduction of a more
formal process will be implemented in the current financial year. 
The Board and its committees:
(a) The Board
The Board normally comprises a non-executive chairman, two other non-executive directors and three
executive directors. The directors (including non-executive directors) have a range of experience and are of
sufficient calibre to bring independent judgement to bear on issues of strategy, performance, resources and
standards of conduct, which is vital to the success of the Company. The Board meets at least eight times a
year and additionally when necessary. At each scheduled meeting of the Board, the Chief Executive reports
on the Company’s operations and the Finance Director reports on the financial position of the Company. To
enable the Board to discharge its duties, all directors receive appropriate and timely information. Briefing
papers are distributed by the Company Secretary to all directors in advance of Board meetings. In addition
the Board has adopted standard procedures and practices whereby significant issues affecting the Company
are reviewed on a regular basis. 
All non-executive directors are considered to be independent by the Board. Tom Brown is the independent
non-executive Chairman and Nick Kuenssberg 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. 
(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.
CHAMBERLIN & HILL plc  Annual Report 2006 16
26178 Pre  28/6/06  6:54 pm  Page 16 (c) Service contracts
See page 20 in the Directors’ Remuneration Report.
(d) Supply of information
The Board is satisfied that it is provided with information in an appropriate form and quality to enable it to
discharge its duties. 
(e) Appointments to the Board
The Nominations Committee, formed at the start of the financial year, 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.
During the year it has considered and made recommendations on the appointment of a new non-executive
director and on the appointment of a new Chief Executive to replace Barrie Williams in preparation for his
retirement. An external search consultancy was used in both cases.
(f) Re-election of directors
All directors submit themselves for re-election at least once every three years in accordance with the Articles
of Association of the Company.
(g) Directors’ remuneration
The statement of the Company’s policy on executive directors’ remuneration and details of directors’
emoluments are contained in the Directors’ Remuneration Report on pages 19 to 22.
(h) Relations with shareholders
Members of the Board hold meetings from time to time with major shareholders to discuss the Company’s
strategy and financial performance. These are usually held after the public announcement of results each 
6 months and usually involve the Company’s brokers, through whom feedback from institutional investors 
is obtained as necessary.
The Board uses the Annual General Meeting to communicate with all private and institutional investors and
welcomes their participation.
(i) Audit Committee
The Audit Committee, which consists of the three non-executive directors, Nick Kuenssberg (Chairman), Tom
Brown and Keith Jackson, meets at least three times a 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 and an “open-door” policy has also been adopted 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. The Board has resolved to formalise this policy to ensure that any
employees with such concerns are more actively encouraged to come forward and make their concerns
known to the Audit Committee.
(j) Remuneration Committee
The Remuneration Committee comprises the three non-executive directors. Further details are shown in the
Directors’ Remuneration Report.
(k) Annual General Meeting
All directors attend the Annual General Meeting and are available to answer questions put to them by
shareholders.
Corporate Governance
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 17
26178 Pre  28/6/06  6:54 pm  Page 17 Corporate Governance
Continued
(l) Internal control
The Board is responsible for the Group’s system of internal control and for reviewing its effectiveness in
accordance with the guidance set out in “Internal Control: Guidance for Directors on the Combined Code”
(the Turnbull Guidance). However, such a system is designed to manage rather than eliminate the risk of
failure to achieve business objectives and can provide only reasonable and not absolute assurance against
material misstatement or loss.
The Code has a requirement that the directors review the effectiveness of the Group’s system of internal controls.
This includes internal financial controls and controls over financial, operational, compliance and risk management.
The Board confirms that regular reviews are carried out, including the annual completion of internal control
questionnaires by the directors in each business, and that there was full compliance throughout the year. 
The Group also operates a risk management process whereby each business identifies its key risks, the probability
of those risks occurring, their potential impact, and action needed to manage them. This is carried out as a specific
exercise as part of the annual budgeting process, but is also part of the day to day management process of each
business. The Group has established procedures for planning and budgeting and monitoring the operational and
financial performance of all businesses in the Group, as well as their compliance with applicable laws and
regulations. These procedures include:
 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.
Summary of attendance at meetings
Board Nominations Remuneration Audit
meetings Committee Committee Committee
Number of meetings in the year 8324
Tom Brown 8324
Nick Kuenssberg 6313
Keith Jackson (appointed 1/10/05) 4112
John Bather (retired 31/12/05) 6213
Barrie Williams 8 3
Simon Duckworth 8
Adam Vicary 8
By order of the Board
Simon Duckworth
Secretary
15 June 2006
CHAMBERLIN & HILL plc  Annual Report 2006 18
26178 Pre  28/6/06  6:54 pm  Page 18 Information not subject to audit
Remuneration Committee
The Remuneration Committee comprises the three non-executive directors; Tom Brown (Chairman), 
Nick Kuenssberg and Keith Jackson. The Committee meets when necessary, usually 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, retain 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 defined benefit and defined contribution pension schemes for the majority of its
employees, including executive directors. No performance related bonuses nor benefits in kind are included
in pensionable salary.
(b) Annual performance related bonus scheme
In order to link executive remuneration to Group performance, executive directors participate in bonus
schemes appropriate to their objectives. Barrie Williams and Simon Duckworth receive annual bonus
payments dependent on improvement in group profit before tax, adjusted where considered necessary for
exceptional items and goodwill. The maximum amount of bonus payable is 50% of their basic salary.
Adam Vicary’s annual bonus for the year to 31 March 2006 was dependent on the annual combined profits
of the foundry divisions. The maximum amount payable is 50% of his basic salary. 
(c) Share options
An incentive to achieve longer-term improvements in shareholder value is afforded through share options. An
Inland Revenue approved scheme and an unapproved scheme for senior executives were established in 1997. 
Options granted are exercisable only upon the achievement of performance targets to be determined by 
the Committee at the time that options are granted. Currently, performance targets are that growth in 
the underlying earnings per share over a period of three consecutive financial years of the Company
(commencing no earlier than the financial year in which the option is granted) shall exceed the growth in the
Retail Prices Index for the same period by at least 6%. The Remuneration Committee considered that this
performance condition was appropriate at the time the relevant options were granted, and that the use of
options aligns the rewards of directors with the long term interests of shareholders.
Performance graph
The following graph shows the Company’s performance compared to the performance of the FTSE engineering and
machinery index over a five year period, measured by total shareholder return. This index has been selected as an
appropriate benchmark because it represents the market sector in which the Company operates.
Total shareholder return is calculated to show the theoretical growth in the value of a shareholding over a specified
period, assuming that dividends are re-invested to purchase additional shares.
Directors’ Remuneration Report
Annual Report 2006  CHAMBERLIN & HILL plc 19
79
11 6
79
70
104
11 5
120
138
159
194
100 99
13 2
121
104
105
13 3
140
170
212
181
250
Apr 01 Oct 01 Apr 02 Oct 02 Apr 03 Oct 03 Apr 04 Oct 04 Apr 05 Oct 05
 
200
150
100
50
0
FTSE Engineering & Machinery Index Chamberlin & Hill
100
26178 Pre  29/6/06  6:17 pm  Page 19 Directors’ Remuneration Report
Continued
Service contracts
Barrie Williams has a written service contract dated 25 April 1996 containing provision for termination on giving 
2 years notice, or such shorter period beyond his 61st birthday as would coincide with his normal retirement date
of his 63rd birthday. His contract is therefore due to terminate on his normal retirement date of 20 September 2006. 
All new executive directors are expected to have rolling service contracts terminable on no more than 1 year’s
notice. Simon Duckworth, who was appointed in November 2004, has such a rolling 1 year contract, as does Adam
Vicary, whose contract was updated and re-signed on 31 March 2005. Tim Hair has, initially, a fixed 12 month
contract. This is due to become a rolling 12 month contract on or before 1 September 2006.
Non-Executive Directors
Remuneration of the non-executive directors, apart from the Chairman, is approved from time to time by the
Chairman and the executive directors.
Tom Brown has entered into a letter of engagement with the Company, and Tom Brown & Company Limited has
entered into a service agreement with the Company both originally dated 12 September 2003 and updated on 
27 January 2005. The letter states that the term of his appointment by the Company will be three years from the
date of the letter unless terminated by either party giving to the other three months notice, or one year in the event
of a change in control of the Company. The other non-executive directors do not have formal contracts.
Information subject to audit
Directors’ emoluments
Total emoluments
Basic Annual excluding pensions
salary Fees Benefits bonus 2006 2005
£000 £000 £000 £000 £000 £000
Executive
Barrie Williams 136 25 31 192 204
Peter Bell (retired 9 Nov 2004) –––– – 63
Simon Duckworth (appointed 9 Nov 2004) 90 – 1 21 112 59
Adam Vicary 81 – 11 27 119 118
Non-executive
Tom Brown * – 45 – – 45 37
John Eccles (retired 30 Jul 2004) –––– – 8
John Bather (retired 31 Dec 2005) – 14 3 – 17 21
Keith Jackson (appointed 1 Oct 2005) – 10 – – 10 –
Nick Kuenssberg * – 25 – – 25 21
Total 307 94 40 79 520 531
Total 2004/2005 295 84 47 105 531
* Includes consultancy fees in respect of services provided to the Company.
Benefits include all assessable tax benefits arising from employment by the Company, and relate mainly to the
provision of company cars 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. There are no other key management
personnel for whom disclosure of emoluments is required.
CHAMBERLIN & HILL plc  Annual Report 2006 20
26178 Pre  28/6/06  6:54 pm  Page 20 Directors’ pensions
Retirement benefits accrued during the year to one director under the Chamberlin & Hill Staff Pension and Life
Assurance Scheme (2005: three directors) which is a defined benefit scheme:-
Increase
Change in in transfer
Change in accrued Accrued value Transfer
Age Accrued accrued benefit benefit at Transfer net of value at
at benefit at benefit due to 31 March value at Directors’ directors’ 31 March
year 31 March due to other 2006 31 March contribu- contribu- 2006
end 2005 inflation factors (Note 1) 2005 tions tions (note 4)
£000 £000 £000 £000 £000 £000 £000 £000
Barrie Williams 62 76 1 2 79 1,161 10 145 1,316
Adam Vicary (note 2) 38 11 – (11) – 53 – (53) – 
1. The pension entitlement shown above is that paid annually at normal retirement age of 63, based on service
to 31 March 2006 or the date of leaving the scheme, whichever is earlier.
2. Adam Vicary left the scheme on 31 October 2004. The figures shown relate to the deferred benefits remaining
within the scheme. The Company now pays a contribution to Mr Vicary’s personal pension scheme as shown
below. He took a transfer value out of the defined benefit scheme in the year ended 31 March 2006.
3. Contributions shown above were paid in the year by the director under the terms of the scheme.
4. Transfer values have been calculated on the basis of actuarial advice in accordance with Actuarial Guidance 
Note GN11 and on the assumption that the remaining director will retire at 63. The transfer value disclosed
above does not represent a sum paid or payable to the individual director. Instead it represents a potential
liability of the pension scheme.
Additional information in relation to the defined benefit scheme:-
(a) On death before retirement, in addition to life assurance benefits, a lump sum is payable equal to the
director’s accumulated contributions together with a spouse’s pension of 50% of the director’s expected
pension. On death after retirement, a spouse’s pension is payable of 55% of the director’s pension at the date
of death.
(b) The early retirement equivalent of the accrued pension can be taken from age 50, with the consent of 
the Company.
(c) Pension increases will be in line with statutory requirements and the ordinary provisions of the scheme before
and after retirement.
(d) There are no discretionary benefits.
Contributions into personal pension plans
Percentage of Contribution Contribution
basic salary paid paid
2006 2005
£000 £000
Simon Duckworth 15% 14 9
Adam Vicary 8% 6 3
No other pension contributions were paid in respect of directors other than as disclosed above.
Directors’ Remuneration Report
Continued
Annual Report 2006  CHAMBERLIN & HILL plc 21
26178 Pre  28/6/06  6:54 pm  Page 21 Directors’ Remuneration Report
Continued
Directors’ options
Exercised Lapsed or
31 March Granted in surrendered 31 March Option 
2005 in year year in year 2006 price Exercisable between
Barrie Williams 30,000 – – – 30,000 185p 16.11.2003 - 15.11.2007
10,000 – – – 10,000 157.5p 01.08.2005 - 31.07.2009
Simon Duckworth 14,575 – – – 14,575 205.5p 10.12.2007 - 9.12.2014
35,425 – – – 35,425 205.5p 10.12.2007 - 9.12.2011
– 25,000 – – 25,000 231.5p 13.07.2008 - 12.07.2012
Adam Vicary 16,000 – – – 16,000 185p 16.11.2003 - 15.11.2010
4,000 – – – 4,000 185p 16.11.2003 - 15.11.2007
8,000 – – – 8,000 157.5p 01.08.2005 - 31.07.2009
10,000 – – – 10,000 155.5p 04.06.2008 - 03.06.2011 
– 25,000 – – 25,000 231.5p 13.07.2008 - 12.07.2012
128,000 50,000 – – 178,000
Option grants are exercisable only upon the achievement of the performance targets explained on page 19.
The calculated cost of share based payments relating to share options granted since November 2002, as shown in
note 19 to the accounts, relates to options granted to Adam Vicary and Simon Duckworth as follows:
2006 2005
£’000 £’000
Simon Duckworth 13 3
Adam Vicary 6 2
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. This price may not be less than the greater of
the market price on the day on which the option is granted and the nominal value of an ordinary share.
There have been no changes in the interests set out above between 1 April 2006 and 15 June 2006. 
The mid-market price of the shares at 31 March 2006 was 211.5p and ranged between 191.5p and 258.5p during
the year.
On behalf of the Board
Tom Brown
Chairman, Remuneration Committee
15 June 2006
CHAMBERLIN & HILL plc  Annual Report 2006 22
26178 Pre  28/6/06  6:54 pm  Page 22 We have audited the Group and Parent Company financial statements (the “financial statements”) of Chamberlin
& Hill plc for the year ended 31 March 2006 which comprise the Consolidated Income Statement, the Consolidated
and Parent Company Statements of Recognised Income and Expense, the Consolidated and Parent Company
Balance Sheets, the Consolidated and Parent Company Cash Flow Statements and the related notes 1 to 29. These
financial statements have been prepared under the accounting policies set out therein. We have also audited the
information in the Directors’ Remuneration Report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the Company’s members those matters
we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members
as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
The Directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the financial
statements in accordance with applicable United Kingdom law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union as set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements and the part of the Directors’ Remuneration Report to 
be audited in accordance with relevant legal and regulatory requirements and International Standards on Auditing
(UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view, the financial
statements and the part of the Directors’ Remuneration Report to be audited have been properly prepared in
accordance with the Companies Act 1985 and Article 4 of the IAS Regulation and that the information given in the
Directors’ Report is consistent with the financial statements. 
We also report to you if, in our opinion, the Company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if information specified by law regarding
directors’ remuneration and other transactions are not disclosed.
We review whether the Corporate Governance Statement reflects the Company’s compliance with the nine
provisions of the 2003 FRC Combined Code specified for our review by the Listing Rules of the Financial Services
Authority, and we report if it does not. We are not required to consider whether the Board’s statements on internal
control cover all risks and controls, or form an opinion on the effectiveness of the Group’s corporate governance
procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements. The other information comprises only the Directors’ Report, the unaudited part of the
Directors’ Remuneration Report, the Chairman’s Statement, the Chief Executive’s and Financial Reviews, the
Corporate Governance Statement and Notice of Annual General Meeting. We consider the implications for our
report if we become aware of any apparent misstatements or material inconsistencies with the financial statements.
Our responsibilities do not extend to any other information.
Basis of Audit Opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements and the part of the Directors’ Remuneration Report to be audited. It also
includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the
financial statements, and of whether the accounting policies are appropriate to the Group’s and Company’s
circumstances, consistently applied and adequately disclosed.
Independent Auditors’ Report
to the members of Chamberlin & Hill plc
Annual Report 2006  CHAMBERLIN & HILL plc 23
26178 Pre  28/6/06  6:54 pm  Page 23 Independent Auditors’ Report
Continued
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements
and the part of the Directors’ Remuneration Report to be audited are free from material misstatement, whether
caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of 
the presentation of information in the financial statements and the part of the Directors’ Remuneration Report 
to be audited.
Opinion
In our opinion:
 the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European
Union, of the state of the Group’s affairs as at 31 March 2006 and of its profit for the year then ended;
 the Parent Company financial statements give a true and fair view, in accordance with IFRSs as adopted by
the European Union as applied in accordance with the provisions of the Companies Act 1985, of the state of
the Parent Company’s affairs as at 31 March 2006;
 the financial statements and the part of the Directors’ Remuneration Report to be audited have been properly
prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation; and
 the information given in the Directors’ Report is consistent with the financial statements.
Separate opinion in relation to IFRSs
As explained in note 1 to the accounts, the Group, in addition to complying with its legal obligation to comply with
those IFRSs as adopted by the European Union, has also complied with IFRSs as issued by the International
Accounting Standards Board.
In our opinion, the Group financial statements give a true and fair view, in accordance with IFRSs, of the state of
the Group’s affairs as at 31 March 2006 and of its profit for the year then ended.
Ernst & Young LLP
Chartered Accountants and Registered Auditor
Birmingham
15 June 2006
CHAMBERLIN & HILL plc  Annual Report 2006 24
26178 Pre  28/6/06  6:54 pm  Page 24 Accounts
Contents
Consolidated Income Statement 26
Consolidated Statement of Recognised
Income and Expense 27
Parent Company Statement of Recognised
Income and Expense 27
Consolidated Balance Sheet 28
Parent Company Balance Sheet 29
Consolidated Cash Flow Statement 30
Parent Company Cash Flow Statement 31
Notes to the Accounts 32
Directors and Advisors 66
Notice of Meeting 67
Annual Report 2006  CHAMBERLIN & HILL plc 25
26178 Pre  28/6/06  6:54 pm  Page 25 Consolidated Income Statement
for the year ended 31 March 2006
Year ended 31 March 2006 Year ended 31 March 2005
Before Exceptional Before Exceptional
exceptional items exceptional items
Notes items (see note 22) Total items (see note 22) Total
£000 £000 £000 £000 £000 £000
Revenue 3 41,435 – 41,435 41,970 – 41,970 
Cost of sales (33,515) – (33,515) (34,831) – (34,831)
Gross profit 7,920 – 7,920 7,139 – 7,139
Other operating 
(expense)/income 4 (5,522) 104 (5,418) (5,068) 292 (4,776)
Operating profit from
continuing operations 2,398 104 2,502 2,071 292 2,363 
Finance revenue 6 1– 1 10 – 10 
Finance costs 6 (135) – (135) (181) – (181)
Profit from continuing 7 2,264 104 2,368 1,900 292 2,192
operations before tax
Tax expense 8 (679) (31) (710) (570) (88) (658)
Profit for the year from 
continuing operations
attributable to equity 1,585 73 1,658 1,330 204 1,534 
holders of the 
Parent Company
Earnings per share: 
basic 11 22.5p 20.9p
underlying 11 21.5p 18.1p
diluted 11 22.4p 20.9p
diluted underlying 11 21.5p 18.1p
CHAMBERLIN & HILL plc  Annual Report 2006 26
26178 Pre  28/6/06  6:54 pm  Page 26 Notes 2006 2005
£000 £000
Actuarial gains/(losses) on pension assets and liabilities 23 1,141 (312)
Deferred tax on actuarial gains/(losses) (342) 94 
Net income/(expense) recognised directly in equity 799 (218)
Profit for the year 1,658 1,534
Total recognised income and expense for the year
attributable to equity holders of the Parent Company 2,457 1,316
Parent Company Statement of Recognised Income and Expense
for the year ended 31 March 2006
Notes 2006 2005
£000 £000
Actuarial gains/(losses) on pension assets and liabilities 23 1,141 (312)
Deferred tax on actuarial gains/(losses) (342) 94 
Net income/(expense) recognised directly in equity 799 (218)
Profit/(loss) for the year 42 (126)
Total recognised income and expense for the year
attributable to equity holders of the Parent Company 841 (344)
Consolidated Statement of Recognised Income and Expense
for the year ended 31 March 2006
Annual Report 2006  CHAMBERLIN & HILL plc 27
26178 Pre  28/6/06  6:54 pm  Page 27 Consolidated Balance Sheet
at 31 March 2006
31 March 31 March
Notes 2006 2005
£000 £000
Non-current assets
Property, plant and equipment 12 8,206 8,990
Intangible assets 13 483 253
Deferred tax assets 17 497 1,047
9,186 10,290
Current assets
Inventories 14 5,308 5,055
Trade and other receivables 15 7,942 9,325
Cash and cash equivalents 593 1
13,843 14,381
Total assets 23,029 24,671
Capital and reserves
Share capital 18 1,840 1,840
Share premium 20 743 743
Capital redemption reserve 20 109 109
Retained earnings 20 10,850 9,246
Total equity 13,542 11,938
Current liabilities
Financial liabilities 16 – 43
Trade and other payables 16 7,501 7,550
Income taxes payable 16 237 638
7,738 8,231
Non-current liabilities
Deferred tax 17 1,262 1,182
Defined benefit pension scheme deficit 23 487 3,320
1,749 4,502
Total equity and liabilities 23,029 24,671
Barrie Williams
Simon Duckworth    
} 
Directors
The accounts were approved by the Board of Directors on 15 June 2006
CHAMBERLIN & HILL plc  Annual Report 2006 28
26178 Pre  28/6/06  6:54 pm  Page 28 31 March 31 March
Notes 2006 2005
£000 £000
Non-current assets
Property, plant and equipment 12 1,085 4,642
Intangible assets 13 10 19
Investments 21 7,159 7,159
Deferred tax assets 17 447 997
8,701 12,817
Current assets
Inventories 14 – 1,319
Trade and other receivables 15 5,076 5,951
Cash and cash equivalents – 1
5,076 7,271
Total assets 13,777 20,088
Capital and reserves
Share capital 18 1,840 1,840
Share premium 20 743 743
Capital redemption reserve 20 109 109
Retained earnings 20 6,832 6,844
Total equity 9,524 9,536
Current liabilities
Financial liabilities 16 1,290 2,026
Trade and other payables 16 119 2,959
Amounts due to subsidiary companies 16 1,477 1,264
Income taxes payable 16 – 1
2,886 6,250
Non-current liabilities
Amounts due to subsidiary companies 17 66 66
Deferred tax 17 814 916
Defined benefit pension scheme deficit 23 487 3,320
1,367 4,302
13,777 20,088
Barrie Williams
Simon Duckworth    
} 
Directors
The accounts were approved by the Board of Directors on 15 June 2006
Parent Company Balance Sheet
at 31 March 2006
Annual Report 2006  CHAMBERLIN & HILL plc 29
26178 Pre  28/6/06  6:54 pm  Page 29 Consolidated Cash Flow Statement
for the year ended 31 March 2006
Year ended Year ended
31 March 31 March
Notes 2006 2005
Operating activities £000 £000
Operating profit 2,502 2,363
Adjustments for:
Depreciation of property, plant and equipment 12 1,526 1,623
Amortisation of software 13 27 31
Negative goodwill recognition – (617)
Amortisation of Russell Castings rent free period – 200
Profit on disposal of property, plant and equipment 7 (1,040) (1)
Pension element of finance costs 6 (71) (111)
Share based payments 19 19 5
Special pension contribution 23 (1,500) – 
Other pension contributions in excess of Income Statement charge (192) (43)
Operating cash flow before movements in working capital 1,271 3,450 
(Increase)/decrease in inventories (253) (674)
(Increase)/decrease in receivables 1,383 (950)
Increase/(decrease) in payables (49) 1,117
Cash generated from operations 2,352 2,943
UK Corporation Tax paid (823) (278)
Net cash flow from operating activities 1,529 2,665
Investing activities
Acquisition of business and assets of Russell Castings 27 – (1,117)
Cash acquired on acquisition of Russell Castings 27 – 1
Interest received 6 1 10
Purchase of property, plant and equipment 12 (1,415) (1,211)
Purchase of software 13 (28) (37)
Development expenditure capitalised (229) – 
Disposal of plant and equipment 1,713 76
Net cash flow from investing activities 42 (2,278)
Financing activities
Interest paid 6 (64) (70)
Equity dividends paid 9 (872) (871)
Issue of shares (including premium) – 30
Net cash flow from financing activities (936) (911)
Net increase/(decrease) in cash and cash equivalents 635 (524)
Cash and cash equivalents at the start of the year (42) 482
Cash and cash equivalents at the end of the year 593 (42)
Cash and cash equivalents comprise:
Cash and cash equivalents 593 1
Financial liabilities 16 – (43)
593 (42)
CHAMBERLIN & HILL plc  Annual Report 2006 30
26178 Pre  28/6/06  6:54 pm  Page 30 Year ended Year ended
31 March 31 March
Notes 2006 2005
Operating activities £000 £000
Operating profit/(loss) 194 (12)
Adjustments for:
Depreciation of property, plant and equipment 12 852 801
Amortisation of software 13 11 4
Profit on disposal of property, plant and equipment 7 (1,029) – 
Pension element of finance costs 6 (71) (111)
Share based payments 19 19 5
Special pension contribution 23 (1,500) – 
Other pension contributions in excess of Income Statement charge (192) (43)
Operating cash flow before movements in working capital (1,716) 644 
(Increase)/decrease in inventories 333 (281)
(Increase)/decrease in receivables 2,498 (1,613)
Increase/(decrease) in payables 352 885
Cash generated from operations 1,467 (365)
UK Corporation Tax paid (1) (44)
Net cash flow from operating activities 1,466 (409)
Investing activities
Interest received 6 1 10
Purchase of property, plant and equipment 12 (383) (484)
Purchase of software 13 (19) (19)
Development expenditure capitalised (130) – 
Disposal of plant and equipment 1,678 49
Disposal of foundry business to subsidiary (942) – 
Net cash flow from investing activities 205 (444)
Financing activities
Interest paid 6 (64) (70)
Equity dividends paid 9 (872) (871)
Issue of shares (including premium) – 30
Net cash flow from financing activities (936) (911)
Net increase/(decrease) in cash and cash equivalents 735 (1,764)
Cash and cash equivalents at the start of the year (2,025) (261)
Cash and cash equivalents at the end of the year (1,290) (2,025)
Cash and cash equivalents comprise:
Cash and cash equivalents – 1
Financial liabilities 16 (1,290) (2,026)
(1,290) (2,025)
Parent Company Cash Flow Statement
for the year ended 31 March 2006
Annual Report 2006  CHAMBERLIN & HILL plc 31
26178 Pre  28/6/06  6:54 pm  Page 31 Notes to the Accounts
1 AUTHORISATION OF FINANCIAL STATEMENTS AND STATEMENT OF COMPLIANCE WITH IFRS
The Group’s and Company’s financial statements of Chamberlin & Hill plc (the ‘Company’) for the year ended
31 March 2006 were authorised for issue by the board of the directors on 15 June 2006 and the balance
sheets were signed on the board’s behalf by Barrie Williams and Simon Duckworth. The Company is a public
limited company incorporated and domiciled in England & Wales. The Company’s ordinary shares are traded
on the London Stock Exchange.
The Group’s financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS). The Company’s financial statements have been prepared in accordance with IFRS as
adopted by the European Union and as applied in accordance with the provisions of the Companies Act 1985.
As permitted, the Group has also adopted early the amendments to International Accounting Standard 
(IAS) 19 ‘Employee Benefits’ published in December 2004.
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 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 230 of the Companies Act 1985 not to publish its individual income
statement and related notes.
This is the first year in which the Group has prepared financial statements under IFRS and the comparatives
have been restated from UK Generally Accepted Accounting Practice (UK GAAP) to comply with IFRS. The
Group published notes and reconciliations to explain the movements in the reported numbers from UK GAAP
to IFRS as part of its Interim Report 2005, published in December 2005. Those notes and reconciliations are
summarised in note 28 to these accounts.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Chamberlin & Hill 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.
New standards and interpretations not applied
The IASB and IFRIC have issued the following standards and interpretations to be applied to financial
statements with periods commencing on or after the following dates:
International Accounting Standards Effective date
IFRS 1 Amendment relating to IFRS 6 1 January 2006
IFRS 4 Insurance Contracts (Amendment to IAS 39 and 
IFRS 4 - Financial Guarantee Contracts) 1 January 2006
IFRS 6 Exploration for and Evaluation of Mineral Assets 1 January 2006
IFRS 7 Financial Instruments: Disclosures 1 January 2007
IAS 1 Amendment – Presentation of Financial Statements: Capital Disclosures 1 January 2007
IAS 19 Amendment – Actuarial Gains and Losses, Group Plans and Disclosures 1 January 2006
IAS 39 Fair Value Option 1 January 2006
IAS 39 Amendments to IAS 39 – Transition and Initial Recognition of 
Financial Assets and Financial Liabilities (Day 1 profits) 1 January 2006
IAS 39 Cash Flow Hedge Accounting 1 January 2006
IAS 39 Amendment to IAS 39 and IFRS 4 – Financial Guarantee Contracts 1 January 2006
CHAMBERLIN & HILL plc  Annual Report 2006 32
26178 NOTES  28/6/06  7:29 pm  Page 32 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
New standards and interpretations not applied (continued)
International Financial Reporting Interpretations Committee Effective date
IFRIC 4 Determining whether an arrangement contains a lease 1 January 2006
IFRIC 5 Rights to Interests Arising from Decommissioning, 
Restoration and Environmental Rehabilitation Funds 1 January 2006
IFRIC 6 Liabilities arising from Participating in a Specific Market – 
Waste Electrical and Electronic Equipment 1 December 2005
IFRIC 7 Applying the Restatement Approach under IAS 29 – 
Financial Reporting in Hyper Inflationary Economies 1 March 2006
IFRIC 8 Scope of IFRS 2 1 May 2006
IFRIC 9 Reassessment of Embedded Derivatives 1 June 2006
The directors do not anticipate that the adoption of the standards and interpretations noted above will have
a material impact on the financial statements in the period of initial application.
Foreign currency translation
The functional and presentation currency of Chamberlin & Hill plc is sterling (£).
Transactions in foreign currencies are recorded in the functional currency at the rate of exchange ruling at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at
the functional currency rate of exchange ruling at the balance sheet date. Any resulting exchange differences
are taken to the consolidated income statement. 
Business combinations and goodwill
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 potential 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.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 33
26178 NOTES  28/6/06  7:29 pm  Page 33 Notes to the Accounts
(continued)
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation and any impairment
in value. The initial cost of an asset comprises its purchase price or construction cost, and any costs directly
attributable to bringing the asset into operation. The purchase price or construction cost is the aggregate
amount paid and the fair value of any other consideration given to acquire the asset. The capitalised value of
a finance lease is also included within property, plant and equipment. For property, where appropriate the
deemed cost as at the date of transition to IFRS is the fair value at the date of the last valuation of these assets.
With the exception of freehold land, depreciation is calculated on a straight-line basis over the estimated
useful life of the asset as follows:
Freehold buildings and long leasehold property –  over expected useful life (not exceeding 50 years)
Short leasehold property –  over the term of the lease
Plant and other equipment –  2 to 10 years
Motor vehicles –  4 years
The estimated useful lives of property, plant and equipment are reviewed on an annual basis and, if necessary,
changes in useful lives are accounted for prospectively.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes
in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where
the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written
down to their recoverable amount.
The recoverable amount of property, plant and equipment is the greater of net selling price and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a 
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. 
For an asset that does not generate largely independent cash inflows, the recoverable amount is 
determined for the cash-generating unit to which the asset belongs. Impairment losses are recognised in the
income statement in the cost of sales line item or in the other operating expenses line item depending on 
the asset concerned.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in the income statement in the year the item is derecognised.
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses.
Computer software, intellectual property rights and other intangible assets are initially recorded at cost.
Where these assets have been acquired through a business combination, this will be the fair value allocated
in the acquisition accounting. Where these have been acquired other than through a business combination,
the initial cost is the aggregate amount paid and the fair value of any other consideration given to acquire
the asset. Computer software and other intangible assets, such as capitalised development expenditure under
IAS 38, are amortised over their useful lives on a straight line basis. Estimated useful life is the shorter of legal
duration and economic useful life, which represents the directors’ best estimate of the period over which the
asset may be used to generate significant economic benefits to the Group. Software has an estimated useful
life of 4 years.
Intangible assets are tested for impairment annually or more frequently whenever events or changes in
circumstances indicate that the carrying value may not be recoverable. Impairment losses are measured on a
similar basis to property, plant and equipment. Useful lives are also examined on an annual basis and
adjustments, where applicable, are made on a prospective basis.
CHAMBERLIN & HILL plc  Annual Report 2006 34
26178 NOTES  28/6/06  7:29 pm  Page 34 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 in the year to 31 March 2006 a useful life of 5 years
was considered appropriate.
The Company’s investments in subsidiaries, joint ventures and associates
In its separate financial statements the Company recognises its investments in subsidiaries at cost. Income is
recognised from these investments only in relation to distributions received from post-acquisition profits.
Distributions received in excess of post-acquisition profits are deducted from the cost of the investment.
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, for example in valuing foundry products, 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 also
utilised within the engineering companies 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.
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. 
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
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of
the leased item, are capitalised at the inception of the lease at the fair value of the lease or, if lower, at the
present value of the minimum lease payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are charged directly against income.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the 
lease term.
Operating lease payments are recognised as an expense in the income statement on a straight-line basis over
the lease term.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 35
26178 NOTES  28/6/06  7:29 pm  Page 35 Notes to the Accounts
(continued)
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Derivative financial instruments and hedging
The Group uses derivative financial instruments such as forward currency contracts to hedge its risks
associated with foreign currency fluctuations. Such derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is entered into and are subsequently remeasured at 
fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value
is negative.
The fair value of forward currency contracts is calculated by reference to current exchange rates. For those
derivatives designated as hedges and for which hedge accounting is desired, the hedging relationship is
documented at its inception. This documentation identifies the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how effectiveness will be measured throughout its
duration. Such hedges are expected at inception to be highly effective.
For the purpose of hedge accounting, hedges are classified as 
 fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or
liability; or
 cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognised asset or liability or a highly probable forecast transaction.
Any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge
accounting are taken to the income statement. Although in the comparative year to 31 March 2005, UK
GAAP was applied, in practice the transition to IFRS has not affected the numbers disclosed in these accounts
as no derivatives qualified for hedge accounting at either 31 March 2005 or 31 March 2006 and all gains or
losses calculated on translation to fair value were taken to the income statement in both years. The treatment
of gains and losses arising from revaluing derivatives designated as hedging instruments would depend on
the nature of the hedging relationship, as follows:
Fair value hedges
For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to
the risk being hedged; the derivative is remeasured at fair value and gains and losses from both are taken to
profit or loss. For hedged items carried at amortised cost, the adjustment is amortised through the income
statement such that it is fully amortised by maturity. When an unrecognised firm commitment is designated
as a hedged item, this gives rise to an asset or liability in the balance sheet, representing the cumulative
change in the fair value of the firm commitment attributable to the hedged risk. 
The Group discontinues fair value hedge accounting if the hedging instrument expires or is sold, 
terminated or exercised, the hedge no longer meets the criteria for hedge accounting or the Group revokes
the designation.
Cash flow hedges
For cash flow hedges, the effective portion of the gain or loss on the hedging instrument is recognised directly
in equity, while the ineffective portion is recognised in profit or loss. Amounts taken to equity are transferred
to the income statement when the hedged transaction affects profit or loss, such as when a forecast sale or
purchase occurs. Where the hedged item is the cost of a non-financial asset or liability, the amounts taken to
equity are transferred to the initial carrying amount of the non-financial asset or liability.
If a forecast transaction is no longer expected to occur, amounts previously recognised in equity are
transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without
replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognised in equity
remain in equity until the forecast transaction occurs and are transferred to the income statement or to the
initial carrying amount of a non-financial asset or liability as above. If the related transaction is not expected
to occur, the amount is taken to profit or loss.
CHAMBERLIN & HILL plc  Annual Report 2006 36
26178 NOTES  28/6/06  7:29 pm  Page 36 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 defined benefit pension scheme and a number of defined contribution schemes, which
require contributions to be made to administered funds separate from the Group.
For the defined benefit pension scheme, assets are measured at fair value and plan liabilities are measured 
on an actuarial basis, using the projected unit method. The service cost of providing pension and other 
post-retirement benefits to employees for the year 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.
A charge representing the unwinding of the discount on the plan liabilities during the year is included within
finance cost. A credit representing the expected return on the plan assets during the year is also included
within finance cost. This credit is based on the market value of the plan assets, and expected rates of return,
at the beginning of the year.
Actuarial gains and losses may result from: differences between the expected return and the actual return on
plan assets; differences between the actuarial assumptions underlying the plan liabilities and actual experience
during the year; or changes in the actuarial assumptions used in the valuation of the plan liabilities. Actuarial
gains and losses, and taxation thereon, are recognised in full in the period in which they occur, in the
statement of recognised income and expense.
For defined contribution plans, contributions payable for the year are charged to the income statement as an
operating expense.
Income taxes
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the balance
sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements, with the following exceptions:
 where the temporary difference arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss;
 in respect of taxable temporary differences associated with investments in subsidiaries, associates and
joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future; and
 deferred income tax assets are recognised only to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, carried forward tax credits or tax losses
can be utilised:
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are
expected to apply when the related asset is realised or liability is settled, based on tax rates and laws enacted
or substantively enacted at the balance sheet date.
Income tax is charged or credited directly to equity if it relates to items that are credited or charge to equity.
Otherwise income tax is recognised in the income statement.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 37
26178 NOTES  28/6/06  7:29 pm  Page 37 Notes to the Accounts
(continued)
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the
buyer and can be reliably measured. Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods provided in the normal course of business, net of
discounts, customs duties and sales taxes.
Dividends
Dividend payments are recognised in the period in which they become a binding obligation on the Company,
which for interim dividends is when they are paid and for final dividends is when they are approved at 
the AGM.
Borrowing costs
Borrowing costs are recognised as interest payable in the income statement in the period in which they are
incurred.
Share based payments
The Group grants equity-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. The fair value is then charged to the income statement over the vesting period
of the options. In valuing equity settled payments, no account is taken of vesting conditions other than
conditions linked to the price of the shares of the company (market conditions). No expense is recognised for
awards that do not ultimately vest. 
At each balance sheet date before vesting, the cumulative expense is calculated taking into account the extent
to which the vesting period has expired and the directors’ best estimate of the achievement or otherwise of
relevant conditions and the number of shares expected to ultimately vest. The movement since the previous
balance sheet date is recognised in the income statement.
The values for the expected life of the options and the expected volatility of the share price used in the
calculation model are based on the directors’ best estimates, taking into account conditions for exercise,
historic data and behavioural considerations.
Operating profit
Operating profit as referred to in the income statement is defined as being profit generated from normal
trading activities before finance costs and revenues, and before taxation.
Exceptional items
The Group presents as exceptional items on the face of the income statement, those items of income and
expenditure which, because of the nature and infrequency of the events giving rise to them and their size in
relation to the operating results of the Group, merit separate presentation to allow shareholders better to
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.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting practice requires
management to make estimates and assumptions 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 assumptions.
The key figures in the accounts that are most sensitive to such estimates and assumptions are goodwill (and
whether impairment has occurred) and defined benefit scheme pension liabilities. Where appropriate, details
of estimates and assumptions used are set out in the relevant notes to the accounts.
CHAMBERLIN & HILL plc  Annual Report 2006 38
26178 NOTES  28/6/06  7:29 pm  Page 38 3 SEGMENTAL ANALYSIS
For management purposes, the Group is organised into two operating divisions; Foundries and Engineering,
which are the primary segments for reporting purposes. The secondary segmental format is geographical.
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 such customers.
The Engineering segment provides manufactured and imported products to distributors and end-users. 
The products fall into the categories of door hardware, hazardous area lighting and control gear, cable
management and general ironmongery.
Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions
with third parties.
The Group’s geographical segments are determined by the location of the Group’s customers. The Group’s
assets and costs incurred are all located within the United Kingdom.
(i) By business segment
Foundries Engineering Total
2006 2005 2006 2005 2006 2005
£000 £000 £000 £000 £000 £000
Revenue
Total sales 33,815 34,040 7,800 7,969 41,615 42,009
Inter-segment sales (180) (39) – – (180) (39)
Sales to third parties 33,635 34,001 7,800 7,969 41,435 41,970
Profit
Trading profit 2,328 1,821 552 694 2,880 2,515
Shared costs (482) (444)
Exceptional items 104 292
Operating profit 2,502 2,363
Net finance costs (134) (171)
Profit from continuing operations before tax 2,368 2,192
Tax expense (710) (658)
Profit for the year from continuing operations 1,658 1,534
Net assets
Segmental assets 16,091 17,397 5,682 6,010 21,773 23,407
Segmental liabilities (6,428) (5,752) (1,149) (1,798) (7,577) (7,550)
Segmental net assets 9,663 11,645 4,533 4,212 14,196 15,857
Unallocated net liabilities (654) (3,919)
Total net assets 13,542 11,938
Movements in fixed assets
Capital additions
Property, plant and 
equipment (note 12) 1,134 1,039 281 172 1,415 1,211
Software (note 13) 24 23 4 14 28 37
Development costs 
(note 13) 130 – 99 – 229 –
Depreciation and amortisation
Property, plant and 
equipment (note 12) (1,231) (1,311) (295) (312) (1,526) (1,623)
Software (note 13) (17) (26) (10) (5) (27) (31)
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 39
26178 NOTES  28/6/06  7:29 pm  Page 39 Notes to the Accounts
(continued)
3 SEGMENTAL ANALYSIS (continued)
Unallocated net liabilities comprise goodwill, cash/overdraft, taxation, pension provisions, deferred tax
balances and head office fixed assets.
(ii) By geographical segment 2006 2005
£000 £000
Revenue by location of customer
United Kingdom 32,730 35,052
Rest of Europe 6,818 5,469
Other countries 1,887 1,449
41,435 41,970
4 OTHER OPERATING EXPENSES 2006 2005
£000 £000
Distribution costs 1,430 1,290
Administration and selling expenses 4,092 3,778
Operating expenses before exceptional items 5,522 5,068
Exceptional items (note 22) (104) (292)
Operating expenses 5,418 4,776
5 STAFF NUMBERS AND COSTS
The average number of people employed by the Group during the year was:
2006 2005
Number Number
Management and administration 88 97
Production 447 476
Total employees 535 573
The aggregate employment costs of these employees including severance 
costs in wages and salaries of £431,000 (2005: £325,000) were as follows:-
2006 2005
£000 £000
Wages and salaries 13,407 13,613
Social security costs 1,261 1,260
Other pension costs 444 417
15,112 15,290
Directors’ emoluments summary 2006 2005
£000 £000
Directors’ emoluments 520 531
Aggregate gains made by directors on exercise of options – –
Amounts receivable under long term incentive plans – –
Notional cost of options granted to directors (see note 19) 19 5
Number of directors accruing benefits under:
Defined benefit pension schemes 1 3
Defined contribution pension schemes 2 1
Directors’ emoluments are analysed in detail in the Directors’ Remuneration Report on pages 19 to 22.
CHAMBERLIN & HILL plc  Annual Report 2006 40
26178 NOTES  28/6/06  7:29 pm  Page 40 6 FINANCE COSTS AND FINANCE REVENUE
2006 2005
£000 £000
Finance costs
Finance cost of pensions (see note 23) (71) (111)
Bank overdraft interest payable (64) (70)
(135) (181)
Finance revenue
Bank interest receivable 1 10
Net finance cost (134) (171)
7 OPERATING PROFIT
2006 2005
This is stated after charging/(crediting): £000 £000
Profit on disposal of fixed assets (1,040) (1)
Depreciation of owned assets 1,526 1,623
Amortisation of software 27 31
Negative goodwill recognition (note 27) – (617)
Exceptional severance payments and related costs (note 22) 925 325
Stock written down 179 –
Auditors’ remuneration as auditors (Company £38,000 (2005: £14,000)) 83 40
Auditors remuneration – other 6 61
Research and development expenditure 40 108
Rentals under operating leases: 
Hire of plant and equipment 116 28
Other 296 96
Of the profit on disposal of fixed assets of £1,040,000 above, £1,029,000 relates to the sale of Bloxwich
site following the termination of operations. The £1,029,000 profit has been disclosed as part of the net
exceptional gain on the face of the income statement, as detailed in note 22.
Severance payments and related costs in the year relate predominantly to restructuring of foundry operations.
The Bloxwich foundry operations were terminated during the year and severance payments, provisions
against asset values and other costs are detailed in note 22.
8 TAX EXPENSE
2006 2005
Current tax: £000 £000
U.K. Corporation Tax at 30% (2005: 30%)
based on taxable profit for the year 422 727
Prior year adjustment – (4)
422 723
Deferred taxation:
Movement in the year (note 17) 630 (159)
Less element of movement shown in the Statement of Recognised
Income and Expense (342) 94
288 (65)
Tax expense reported in the consolidated income statement 710 658
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 41
26178 NOTES  28/6/06  7:30 pm  Page 41 Notes to the Accounts
(continued)
8 TAX EXPENSE (continued)
2006 2005
£000 £000
Reconciliation of total tax charge
Profit on ordinary activities before tax 2,368 2,192
Corporation tax at standard rate of 30% (2005: 30%) on profit before tax 710 658
Adjusted by the effects of:-
Expenses not deductible for tax purposes 11 16
Deduction in respect of special pension contribution (150) –
Deduction in respect of other pension contributions (57)
Deduction in respect of rollover of gain on property disposal (309) –
IBA adjustment re disposal of property 140 –
Other movements in temporary differences 77 (16)
Current tax charge 422 658
Deferred tax charge relating to temporary differences 288 –
Tax expense 710 658
9 DIVIDENDS PAID AND PROPOSED 2006 2005
£000 £000
Paid equity dividends on ordinary shares
2005 final dividend of 8.00p per share 589 587
2006 interim dividend of 3.85p per share 283 284
872 871
Proposed final dividend subject to shareholder approval
2006 final dividend of 8.00p per share 
(not recognised as a liability at 31 March 2006) 589 588
10 PARENT COMPANY TRANSFER FROM RESERVES
The profit dealt with in the accounts of the parent company was £42,000 (2005: loss of £126,000).
A net gain in respect of the funding of the defined benefit scheme of £799,000 was transferred to reserves
(2005: £218,000 transferred from reserves) as shown in the Statement of Changes in Equity in note 20.
CHAMBERLIN & HILL plc  Annual Report 2006 42
26178 NOTES  28/6/06  7:30 pm  Page 42
After dividends, the deficit transferred from reserves was £830,000 (2005: £997,000). 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, which excludes
operating exceptionals, as analysed below, has also been disclosed as the Directors believe this allows a better
assessment of the underlying trading performance of the Group.
Operating exceptionals comprise severance payments and related costs associated with significant operational
restructuring.
2006 2005
£000 £000
Earnings for basic earnings per share 1,658 1,534
Negative goodwill recognition (note 27) – (617)
Taxation effect of goodwill recognition – 185
Operating exceptionals (104) 325
Taxation effect of operating exceptionals 31 (97)
Earnings for underlying earnings per share 1,585 1,330
2006 2005
’000 ‘000
Weighted average number of ordinary shares 7,360 7,347
Adjustment to reflect shares under options 28 7
Weighted average number of ordinary shares – fully diluted 7,388 7,354
12 PROPERTY, PLANT AND EQUIPMENT
Land and Plant and Motor
Group buildings machinery vehicles Total
£000 £000 £000 £000
Cost or valuation
At 1 April 2004 4,928 22,073 559 27,560 
Acquisition of Russell Castings assets – 753 – 753 
Additions 375 647 189 1,211 
Disposals – (748) (210) (958)
At 31 March 2005 5,303 22,725 538 28,566 
Additions 580 719 116 1,415 
Disposals (928) (956) (121) (2,005)
At 31 March 2006 4,955 22,488 533 27,976 
Depreciation
At 1 April 2004 1,200 17,327 309 18,836 
Charge for year 101 1,404 118 1,623 
Disposals – (731) (152) (883)
At 31 March 2005 1,301 18,000 275 19,576 
Charge for year 104 1,323 99 1,526 
Disposals (293) (956) (83) (1,332)
At 31 March 2006 1,112 18,367 291 19,770 
Net book value
At 31 March 2006 3,843 4,121 242 8,206 
At 31 March 2005 4,002 4,725 263 8,990 
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 43
26178 NOTES  28/6/06  7:30 pm  Page 43 Notes to the Accounts
(continued)
12 PROPERTY, PLANT AND EQUIPMENT (continued)
Net book value of land and buildings comprises:- 2006 2005
£000 £000
Freehold 3,804 3,950
Short leasehold (leasehold improvements) 39 52
3,843 4,002
Land and Plant and Motor
Company buildings machinery vehicles Total
£000 £000 £000 £000
Cost
At 1 April 2004 2,512 14,581 327 17,420 
Additions – 420 64 484 
Disposals – (731) (128) (859)
At 31 March 2005 2,512 14,270 263 17,045 
Additions 51 314 18 383 
Disposals  – external (928) (809) (48) (1,785)
– to group company* – (13,747) (147) (13,894)
At 31 March 2006 1,635 28 86 1,749
Depreciation
At 1 April 2004 795 11,456 161 12,412 
Charge for year 44 692 65 801 
Disposals – (720) (90) (810)
At 31 March 2005 839 11,428 136 12,403 
Charge for year 45 769 38 852 
Disposals  – external (293) (809) (34) (1,136)
– to group company* – (11,363) (92) (11,455)
At 31 March 2006 591 25 48 664
Net book value
At 31 March 2006 1,044 3 38 1,085
At 31 March 2005 1,673 2,842 127 4,642 
* At 31 March 2006, the foundry business and associated assets of the Company were sold to a subsidiary,
Phoenix Foundry (Bloxwich) Limited which then changed its name to Chamberlin & Hill Castings Limited
(see note 29). The Company continues to act as the holding company of the Group and contains the Group
administration function.
Group Company
£000 £000
Freehold land included above not subject to depreciation amounted to: 708 408 
CHAMBERLIN & HILL plc  Annual Report 2006 44
26178 NOTES  28/6/06  7:30 pm  Page 44 13 INTANGIBLE ASSETS
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Goodwill 201 201 – –
Software 53 52 10 19 
Development costs capitalised
483 253 10 19
Goodwill
£000
Cost
At 1 April 2004 201
Additions –
At 31 March 2005 201
Additions –
At 31 March 2006 201
Amortisation/impairment
At 1 April 2004 –
Charge for the year –
At 31 March 2005 –
Charge for the year –
At 31 March 2006 –
Net Book Value
At 31 March 2006 201
At 31 March 2005 201
Goodwill arose initially on the acquisition of the Webb Lloyd business which now forms part of Fred
Duncombe Limited. 
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill
might be impaired. In these calculations, the recoverable amounts from the Webb Lloyd Cash Generating Unit
are determined from value in use calculations. The key assumptions relate to the future cash flows and
discount rate to be used. At the goodwill figure stated in the accounts and the estimated level of cash
expected to be generated by the Webb Lloyd business, there is no impairment.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 45
26178 NOTES  28/6/06  7:30 pm  Page 45
229 – – – Notes to the Accounts
(continued)
13 INTANGIBLE ASSETS (continued)
Software Group Company
£000 £000
Cost
At 1 April 2004 230 108
Additions 37 19
Disposals – – 
At 31 March 2005 267 127 
Additions 28 19 
Disposals to group company – (134)
At 31 March 2006 295 12
Amortisation/impairment
At 1 April 2004 184 104
Charge for the year 31 4
At 31 March 2005 215 108 
Charge for year 27 11 
Disposals to group company – (117)
At 31 March 2006 242 2
Net Book Value
At 31 March 2006 53 10
At 31 March 2005 52 19
Software has an estimated useful life of 4 years.
Development costs capitalised Group Company
£000 £000
Cost
At 1 April 2005 – – 
Additions (note (a) below) 229 130 
Disposals to group company (note (b) below) – (130)
At 31 March 2006 229 – 
Amortisation/impairment
At 1 April 2005 and 31 March 2006 – – 
Net Book Value
At 31 March 2006 229 –
At 31 March 2005 – – 
a) 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. A life of
5 years has been selected as appropriate for the projects capitalised in the year. Amortisation will be
applied on commencement of commercial sales.
b) At 31 March 2006, the foundry business and associated assets of the Company were sold to a
subsidiary, Phoenix Foundry (Bloxwich) Limited, which then changed its name to Chamberlin & Hill
Castings Limited (see note 29). The Company continues to act as the holding company of the Group
and contains the Group administration function.
CHAMBERLIN & HILL plc  Annual Report 2006 46
26178 NOTES  28/6/06  7:30 pm  Page 46 14 INVENTORIES
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Raw materials 1,599 1,625 – 237
Work in progress 1,608 1,075 – 223
Finished goods 2,101 2,355 – 859
5,308 5,055 – 1,319
15 TRADE AND OTHER RECEIVABLES
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Trade receivables 7,724 8,922 – 3,834
Amounts due from subsidiary undertakings – – 5,041 1,841
Other receivables 29 22 – –
Prepayments 189 381 35 276
7,942 9,325 5,076 5,951
Trade receivables are normally on terms of 30 to 60 days. 
Amounts due from subsidiary companies are interest free and repayable on demand.
16 CURRENT LIABILITIES 
Group Company
Financial liabilities 2006 2005 2006 2005
£000 £000 £000 £000
Bank overdraft – 43 1,290 2,026
The overdraft is held with HSBC Bank plc as part of the Group facility of £3,500,000, is unsecured and
repayable on demand.
Group Company
Trade and other payables 2006 2005 2006 2005
£000 £000 £000 £000
Trade payables 5,187 5,141 – 2,037
Amounts due to subsidiary undertakings – – 1,477 1,264
Other taxation and social security 822 1,045 – 425
Other creditors 256 284 – 121
Accruals 1,236 1,080 119 376
7,501 7,550 1,596 4,223
Trade payables 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.
Group Company
Income taxes payable 2006 2005 2006 2005
£000 £000 £000 £000
UK corporation tax 237 638 – 1 
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 47
26178 NOTES  28/6/06  7:30 pm  Page 47 Notes to the Accounts
(continued)
17 NON-CURRENT LIABILITIES
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Intra-group balances – – 66 66
The amount owed by the Company to non-trading subsidiary undertakings is non-interest bearing and
repayable by agreement with the parent company.
Provisions for liabilities Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Deferred taxation 1,262 1,182 814 916
Deferred tax liabilities 2006 2005
Amount not Amount Amount not Amount 
provided provided provided provided
£000 £000 £000 £000
Group liabilities
Temporary differences re capital allowances – 478 – 676
Re negative goodwill recognition –– –31
Capital gains rolled over – 784 – 475
– 1,262 – 1,182
Company liabilities
Temporary differences re capital allowances – 113 – 524
Capital gains rolled over – 701 – 392
– 814 – 916
Deferred tax assets Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Temporary differences re pension scheme deficit 146 996 146 996
Temporary difference re plant at Russell Castings 50 50 – –
Temporary difference re special pension contribution 300 – 300 –
Other temporary differences 1 1 1 1
497 1,047 447 997
Deferred taxation Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Movement in net deferred taxation during the year
Net liability/(asset) brought forward 135 294 (81) 71 
Re pension provision movement 850 (81) 850 (81)
Re special pension contribution (300) – (300) –
Re rolled over gain on Bloxwich site sale 309 – 309 –
Re negative goodwill recognition (31) 31 – –
Recognition of deferred tax asset at Russell Castings – (50) – –
Sale of assets and liabilities to subsidiary* – – (201) –
Movement on other temporary differences (198) (59) (210) (71)
765 135 367 (81)
* Deferred tax liabilities in relation to accelerated capital allowances on fixed assets sold to a subsidiary
company, Chamberlin & Hill Castings Limited (see note 29).
CHAMBERLIN & HILL plc  Annual Report 2006 48
26178 NOTES  28/6/06  7:30 pm  Page 48 18 SHARE CAPITAL 2006 2005
£000 £000
Authorised
9,000,000 (2005: 9,000,000) Ordinary shares of 25p 2,250 2,250
Allotted, called up and fully paid 
7,359,658 (2005: 7,359,658) Ordinary shares of 25p 1,840 1,840
During the year no shares (2005: 18,750) were issued to satisfy the exercise of options under the executive
share option scheme.
No share options lapsed (2005: 82,500).
50,000 options were granted (2005: 60,000) and no options were surrendered (2005: 49,000).
Options outstanding at 31 March 2006 were:
No. of shares Exercise price Exercisable between
36,000 185p 16.11.2003 – 15.11.2010
34,000 185p 16.11.2003 – 15.11.2007
12,000 157.5p 01.08.2005 – 30.07.2009
18,000 157.5p 01.08.2005 – 31.07.2012
10,000 155.5p 03.06.2007 – 02.06.2011
14,575 205.5p 10.12.2007 – 09.12.2014
35,425 205.5p 10.12.2007 – 09.12.2011
Outstanding at 31 March 2005 160,000
Granted in year 50,000 231.5p 13.07.2008 – 12.07.2012
Outstanding at 31 March 2006 210,000
19 SHARE BASED PAYMENTS
The Company has an Inland Revenue Approved and an Unapproved share option scheme used to incentivise
Directors and senior managers of the Group. Options are exercisable at a price equal to the quoted market
price of the Company’s shares at the date of grant. The vesting period is 3 years and the options expire after 
10 years from date of grant (for Approved options) or 7 years (for Unapproved options). Options lapse if the
employee leaves the Group subject to certain exceptions set out in the scheme rules. Under the transitional
arrangements in IFRS 2, only live options granted after 7 November 2002 which had not vested at the
effective date of the IFRS are included in the share based payment calculations. 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 (excluding 100,000 options granted before 7 November 2002) outstanding during the year
were as follows:
No. of Exercise Weighted 
shares price average Exercisable between
10,000 155.5p 03.06.2007 - 02.06.2011
14,575 205.5p 10.12.2007 - 09.12.2014
35,425 205.5p 10.12.2007 - 09.12.2011
Outstanding at 31 March 2005 60,000 197.17p
Granted in the year 50,000 231.5p 13.07.2008 - 12.07.2012
Outstanding at 31 March 2006 110,000 212.77p
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 49
26178 NOTES  28/6/06  7:30 pm  Page 49 Notes to the Accounts
(continued)
19 SHARE BASED PAYMENTS (continued)
Based on the following assumptions at 31 March 2006, the total fair value of options was £63,735, of which
£18,717 (2005: £5,040) was charged to the income statement. The fair value of options granted in the year
was £26,621 (2005: £37,114).
Share price at 31 March 2006 211.5p
Expected volatility 50.0%
Expected life 3.8 years
Risk free rate 3.0%
Expected dividend yield 5.6%
Expected volatility, to which the fair value is most sensitive, is based on movements in the share price 
during the year and the directors’ expectations of future volatility. The expected life has been arrived at 
based on the Directors’ best estimate taking into account exercise conditions and behavioural considerations.
The mid-market price of the shares ranged between 191.5p and 258.5p during the year to 31 March 2006.
20 STATEMENT OF CHANGES IN EQUITY
Attributable
Capital to equity
Share Shareredemption Retainedholders of
capital premium reserve earnings the parent
Group £000 £000 £000 £000 £000
Balance at 1 April 2004 1,835 718 109 8,796 11,458
Total recognised income and expense 
for the year ended 31 March 2005 – – – 1,316 1,316
Dividends paid (note 9) – – – (871) (871)
Recognition of share based payments – – – 5 5
Issue of shares 5 25 – – 30
Balance at 1 April 2005 1,840 743 109 9,246 11,938
Total recognised income and expense
for the year ended 31 March 2006 – – – 2,457 2,457
Dividends paid (note 9) – – – (872) (872)
Recognition of share based payments – – – 19 19 
Balance at 31 March 2006 1,840 743 109 10,850 13,542
Company £000 £000 £000 £000 £000
Balance at 1 April 2004 1,835 718 109 8,054 10,716
Total recognised income and expense
for the year ended 31 March 2005 – – – (344) (344)
Dividends paid (note 9) – – – (871) (871)
Recognition of share based payments – – – 5 5
Issue of shares 5 25 – – 30
Balance at 1 April 2005 1,840 743 109 6,844 9,536
Total recognised income and expense
for the year ended 31 March 2006 – – – 841 841 
Dividends paid (note 9) – – – (872) (872)
Recognition of share based payments – – – 19 19 
Balance at 31 March 2006 1,840 743 109 6,832 9,524
CHAMBERLIN & HILL plc  Annual Report 2006 50
26178 NOTES  28/6/06  7:30 pm  Page 50 21 FIXED ASSET INVESTMENTS
2006 2005
£000 £000
Shares in subsidiary undertakings
At cost 7,159 7,159
Wholly owned operating Principal activity
subsidiaries
Fred Duncombe Ltd Manufacture and sale of architectural hardware
Ductile Castings Ltd Manufacture and sale of engineering castings
PFP Electrical Products Ltd. Manufacture and sale of lighting, switchgear and electrical
installation products
Russell Castings Ltd* Manufacture and sale of engineering castings
Chamberlin & Hill Castings Limited** Manufacture and sale of engineering castings
The Company owns 100% of the issued ordinary share capital of the above companies, all of whom operate
principally in England and Wales. 
*   On 31 March 2006, Russell Castings Limited acquired the business and assets of Ductile Castings Limited
and changed its name to Russell Ductile Castings Limited. Ductile Castings Limited became dormant from
this date.
** On 31 March 2006, the castings business within Chamberlin & Hill plc was sold to a previously dormant
100% subsidiary, Phoenix Foundry (Bloxwich) Limited which then changed its name to Chamberlin & Hill
Castings Limited.
22 EXCEPTIONAL ITEMS
2006 2005
£000 £000
Severance costs (425) (325)
Other closure costs (500) –
Profit on sale of Bloxwich property 1,029 –
Negative goodwill recognition (note 27) – 617 
104 292
Severance costs in 2006 relate predominantly to the termination of production at the Bloxwich foundry and
the resulting redundancies of employees not transferred to alternative employment within the Group.
Other closure costs relate to the disposal of certain stocks at below normal selling price, and the writing down
of fixed assets and remaining stocks to their net realisable values at the year end.
The profit on sale of the Bloxwich site to Midland Properties (West Midlands) Limited comprised:
£000 
Proceeds of disposal 1,675
Net book value of property (635)
Sale costs (11)
1,029
Negative goodwill recognition in 2005 related to recognition of all of the negative goodwill arising on
acquisition of the business and assets of Russell Castings.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 51
26178 NOTES  28/6/06  7:30 pm  Page 51 Notes to the Accounts
(continued)
23 PENSION ARRANGEMENTS
During the year, the Group operated funded defined benefit and defined contribution pension schemes for
the majority of its employees, these being established under trusts with the assets held separately from those
of the Group. The pension operating cost for all of the Group schemes for 2006 was £444,000 
(2005: £417,000) plus £71,000 (2005: £111,000) of financing cost. The defined benefit scheme is closed to
new members.
The major scheme is the staff scheme, which is a defined benefits scheme providing benefits based on final
salary. The pension cost has been projected forward, updated each 6 months, from the results of an actuarial
valuation carried out as at 1 April 2004 using the projected unit method. The market value of the scheme’s
total assets on that date was £9,718,000 and the value of these assets represented 76% of the benefits that
had accrued to members allowing for expected future increases in salaries (which from 1 April 2002 have
been limited to inflation).
The other schemes within the Group are defined contribution schemes and the pension cost represents
contributions payable. The notes below relate to the defined benefit scheme.
An actuarial valuation of the defined benefit scheme was carried out on 1 April 2004 and has been updated
to 31 March 2006. The service cost has been calculated using the Projected Unit method. As a result of the
Scheme being closed to new entrants, the service cost, expressed as a percentage of pensionable payroll, will
increase as the members of the Scheme approach retirement. The major assumptions used by the actuary were
(in nominal terms):-
At 31 March At 31 March At 31 March
2006 2005 2004
Rate of increase in salaries 2.7% 2.9% 2.9%
Rate of increase of pensions in payment- post 1997 acccrual only 2.7% 2.9% 2.9%
Discount rate 5.1% 5.4% 5.5%
Inflation assumption 2.7% 2.9% 2.9%
Demographic assumptions are all based on the PMA92 and PFA92 mortality tables without adjustment.
The next full actuarial valuation is due to take place in April 2007.
In 2004/05 members’ contributions increased from 7% to 8% and from 1 April 2004 the future annual
accrual rate reduced from 1/60th to 1/80th of pensionable salary. The Company contributed to the Scheme
at an average rate of 17.1% in the year to 31 March 2005. Due to the closure of the scheme to new members
and the resulting ongoing reduction in members’ pensionable salaries, the Company has contributed at the
rate of 9.1% of members’ pensionable salaries in the year to 31 March 2006 to cover members’ benefits
accruing, plus a past service “catch-up” contribution of £23,900 per month designed to return the scheme
to a fully funded position over a 20 year period.
A special contribution of £1,500,000 was made in March 2006. The catch-up contribution has remained at
£23,900 per month and the Company has committed to a reduced catch-up period of a maximum of 10 years.
The assets and liabilities of the scheme and the expected rates of return* were:
As at 31 March 2006 As at 31 March 2005 As at 31 March 2004
Rate of Rate of Rate of
return Value return Value return Value
% £000 % £000 % £000
Equities 7.00 8,137 7.25 6,945 7.25 6,603 
Gilts 5.00 1,743 4.25 1,354 4.25 1,200 
Bonds 4.60 2,215 5.00 1,952 5.00 1,676 
Cash 4.00 1,595 4.00 83 4.00 52 
–––––––– –––––––– ––––––––
Market value of assets net 
of insured annuities 13,690 10,334 9,531
Actuarial value of liability (14,177) (13,654) (12,582)
–––––––– –––––––– ––––––––
Recoverable deficit in scheme (487) (3,320) (3,051)
Related deferred tax asset 146 996 915
–––––––– –––––––– ––––––––
Net pension liability (341) (2,324) (2,136)
–––––––– –––––––– ––––––––
–––––––– –––––––– ––––––––
*The rates quoted above are the expected net rates of return after allowance for expenses.
CHAMBERLIN & HILL plc  Annual Report 2006 52
26178 NOTES  28/6/06  7:30 pm  Page 52 23 PENSION ARRANGEMENTS (continued)
Recognised in the income statement Year to Year to
31 March 31 March
2006 2005
£000 £000
Current service cost 95 110 
Past service cost – 65 
Total charge disclosed in operating profit 95 175 
Recognised as finance cost Year to Year to
31 March 31 March
2006 2005
£000 £000
Expected return on pension scheme assets 659 581 
Interest on pension liabilities (730) (692)
Net return disclosed in finance costs (71) (111)
Analysis of amount recognised in consolidated Statement
of Recognised Income and Expense (SORIE) Year to Year to
31 March 31 March
2006 2005
£000 £000
Actual return less expected return on assets 1,285 347 
Experience loss on liabilities (144) (659)
Actuarial gain/(loss) recognised in the SORIE 1,141 (312)
Movement in deficit during the year Year to Year to
31 March 31 March
2006 2005
£000 £000
Deficit in scheme at beginning of year (3,320) (3,051)
Movement in year:
Current service cost (95) (110)
Regular contributions 358 329 
Special contribution 1,500 – 
Past service costs – (65)
Net expected return on assets (71) (111)
Actuarial gain/(loss) 1,141 (312)
Deficit in scheme at end of year (487) (3,320)
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 53
26178 NOTES  28/6/06  7:30 pm  Page 53 Notes to the Accounts
(continued)
23 PENSION ARRANGEMENTS (continued)
Movement in scheme assets Year to Year to
31 March 31 March
2006 2005
£000 £000
Fair value at beginning of year 10,334 9,531
Expected return on scheme assets 659 581
Actuarial gains 1,285 347
Employer contributions 1,858 329
Member contributions 94 130
Estimated benefits paid (540) (584)
Fair value at end of year 13,690 10,334 
Movement in scheme liabilities Year to Year to
31 March 31 March
2006 2005
£000 £000
Benefit obligation at start of year 13,654 12,582
Current service cost 95 110
Past service cost – 65
Interest cost 730 692
Scheme members’ contributions 94 130
Actuarial loss 144 659
Estimated benefits paid (540) (584)
Benefit obligation at end of year 14,177 13,654 
Experience gains and losses Year to Year to
31 March 31 March
2006 2005
Difference between expected and actual return on scheme assets £000 1,285 347 
% of assets 9.4% 3.4%
Experience gains/(losses) on scheme liabilities £000 (144) (659)
% of liabilities 1.0% 4.8%
Net gains/(losses) £000 1,141 (312)
% of liabilities 8.0% 2.3%
The Company contributed £358,000 to the scheme in the year ended 31 March 2006 plus a special
contribution of £1,500,000 paid into the scheme on 15 March 2006.
CHAMBERLIN & HILL plc  Annual Report 2006 54
26178 NOTES  28/6/06  7:30 pm  Page 54 24 CONTINGENT LIABILITIES
Cross guarantees exist between the Company and its subsidiary undertakings in respect of the Group’s bank
overdrafts. The borrowings of the subsidiaries at 31 March 2006 amounted to £nil (2005: £134,000).
A claim has been received for statutory nuisance in relation to the operations of our Walsall foundry. The claim
is limited to £50,000 and will be vigorously defended.
25 FINANCIAL COMMITMENTS
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Capital expenditure
Contracted for but not provided in the accounts 314 – – –
Lease commitments
The Group had annual commitments under operating leases as follows:
Land and Other
buildings
2006 2005 2006 2005
£000 £000 £000 £000 
Leases terminating:
within one year 35 – 2 –
between two and five years* 296 296 3 9
after more than five years – – – –
*Leases on land and buildings comprise the lease for the Leicester foundry (£200,000 per annum with an end
date, subject to earlier termination, of 31 March 2010), and a lease within the Engineering Division for
£96,000 terminating in August 2009.
The total commitment for property leases terminating between 2 and 5 years, subject to rent reviews, is
therefore £1,125,000.
The lease on the Leicester foundry is terminable by either party on 6 months notice after 1 April 2008.
26 DERIVATIVES AND FINANCIAL INSTRUMENTS
The Group considers the use of derivatives to reduce financial risk in a number of areas noted below.
The only area where the use of derivatives is considered appropriate at present is that of currency risk.
Currency risk
The Group’s functional currency is sterling but approximately 15% of revenues are denominated in foreign
currencies, principally Euros in relation to castings exports. In order to reduce the Group’s exposure to
currency fluctuations the Group sells approximately 80% of its expected Euro revenues on forward currency
contracts of 12 months or less. At the year end it had net monetary assets denominated in Euros of
£1,166,000 (2005: £1,422,000).
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 55
26178 NOTES  28/6/06  7:30 pm  Page 55 Notes to the Accounts
(continued)
26 DERIVATIVES AND FINANCIAL INSTRUMENTS (continued)
Forward currency contracts for the sale of Euros outstanding at the year end have been retranslated to the
prevailing year end rate with the difference being taken to the income statement, as follows:
Contracted Contracted Exchange
At Maturity amount Contract amount rate at Fair value Profit/(loss)
31 March 2006 date (€000) rate £000 year end £000 £000
11/4/06 500 1.4370 348 1.4332 349 (1)
15/5/06 500 1.4331 349 1.4332 349 –
16/6/06 750 1.4701 510 1.4332 523 (13)
5/7/06 500 1.4446 346 1.4332 349 (3)
8/8/06 500 1.4136 354 1.4332 349 5
11/10/06 500 1.4336 349 1.4332 349 –
13/11/06 500 1.4341 349 1.4332 349 –
5/1/07 500 1.4320 349 1.4332 349 –
28/2/07 500 1.4259 351 1.4332 349 2
30/3/07 500 1.4210 352 1.4332 349 3
–––––––– –––––––– –––––––– ––––––––
5,250 3,657 3,664 (7)
–––––––– –––––––– –––––––– ––––––––
–––––––– –––––––– –––––––– ––––––––
At 31 March 2005
6/5/05 750 1.4561 515 1.4528 516 (1)
25/7/05 750 1.4641 512 1.4528 516 (4)
17/10/05 750 1.4242 527 1.4528 516 10
6/1/06 750 1.3860 541 1.4528 516 25
–––––––– –––––––– –––––––– ––––––––
3,000 2,095 2,065 30
–––––––– –––––––– –––––––– ––––––––
–––––––– –––––––– –––––––– ––––––––
Although in the comparative year to 31 March 2005, UK GAAP was applied, in practice the transition to IFRS
has not affected the numbers disclosed in these accounts as no derivatives qualified for hedge accounting at
either 31 March 2005 or 31 March 2006 and all gains or losses calculated on translation to fair value were
taken to the income statement in both years.
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. An analysis of interest bearing financial assets and liabilities is given below.
Cash and cash equivalents/(overdraft) Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Sterling 399 (43) (1,290) (2,025)
Euro 194 1 – –
593 (42) (1,290) (2,025)
Balances outstanding on the Group’s overdraft facility from time to time are subject to floating rate interest
and are repayable on demand.
Credit risk
There are no significant concentrations of credit risk within the Group.
CHAMBERLIN & HILL plc  Annual Report 2006 56
26178 NOTES  29/6/06  7:01 pm  Page 56 27 ACQUISITION OF THE BUSINESS AND ASSETS OF RUSSELL CASTINGS – REVISION TO GOODWILL
On 2 April 2004, the Group, through its subsidiary company Platt Malleable Castings Limited, acquired the
business and certain assets of Russell Castings, a foundry business based in Leicester. Platt Malleable Castings
Limited then changed its name to Russell Castings Limited.
Following a re-examination of the acquisition, an additional asset has been separately recognised, thus
increasing the negative goodwill recognised on acquisition in the comparative year to 31 March 2005.
Details of assets acquired and consideration paid are given below:
Fair Fair value
Book value of assets
value adjustments acquired
£000 £000 £000
Property, plant and equipment (note (a) below) 1,275 (522) 753
Inventories (note (b) below) 1,075 (190) 885
Receivables 1,718 – 1,718
Cash and cash equivalents 1 – 1
Payables (1,823) – (1,823)
Fair values previously reported 2,246 (712) 1,534
Additional asset re rent free period (note (c) below) – 200 200
Revised fair values on acquisition 2,246 (512) 1,734 
Revised discount on acquisition (617)
1,117
Consideration paid:
– initial cash payment 500
– acquisition expenses 146
– deferred payment (paid 1 October 2004) 471
1,117
a) Property, plant and equipment values were recalculated to fair values based on their estimated
remaining useful lives.
b) Inventories were revalued on a basis consistent with Group policy.
c) The provisional fair values previously reported have now been reviewed and the directors considered
that an additional asset was required to be recognised in respect of a one year rent free period
negotiated as part of the acquisition, as this had affected the total consideration paid. The negative
goodwill arising (known under IFRS as discount on acquisition) therefore became £617,000 rather than
the £417,000 previously reported. The rent free period asset has been amortised to the income
statement evenly over the 2004/05 financial year. Under IFRS the discount on acquisition of £617,000
has been recognised through the income statement immediately. The effect of this change on the
previously reported results has been identified separately in the reconciliations given in note 28 below.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 57
26178 NOTES  28/6/06  7:30 pm  Page 57 Notes to the Accounts
(continued)
28 EXPLANATION OF TRANSITION TO IFRS
Set out below are certain reconciliations to show the effect on the previously reported figures of the Group
of moving from UK Generally Accepted Accounting Practice (“UK GAAP”) to International Financial
Reporting Standards (“IFRS”). Two additional revisions have also been made which are not attributable to the
change to IFRS; an amendment to the deferred tax element of the tax charge for the year to 31 March 2005
and a revision to the provisional fair value and negative goodwill figures on acquisition of the business and
assets of Russell Castings (see note 27). The effect of these two revisions is identified separately in the notes
and reconciliations below.
The individual IFRSs giving rise to significant changes in the figures are described below. Exemptions taken as
allowed under IFRS 1 – First time adoption of International Financial Reporting Standards, are disclosed in
each note.
IFRS 2 Share-based payments
In accordance with IFRS 2, the Group has recognised a charge reflecting the fair value of outstanding share
options granted to employees since 7 November 2002 (see note 19). No such charge was recognised under
UK GAAP . As allowed by IFRS 2, only options granted since 7 November 2002 have been costed. The impact
of this change has been a charge to operating profit of £5,000 in the year to 31 March 2005.
IFRS 3 Business combinations
IFRS 3 requires goodwill to be carried at cost less impairment, rather than it being amortised as it was under
UK GAAP. As permitted by IFRS 1, the Group has chosen to apply IFRS 3 prospectively from the transition
date of 1 April 2004 and not to restate previous business combinations. Goodwill is, therefore, stated in the
opening balance sheet at 1 April 2004 at its UK GAAP carrying value at that date of £201,000. Subsequent
amortisation has been reversed, resulting in an increase in reported operating profit of £13,000 for the year
to 31 March 2005.
Negative goodwill arose on the acquisition of the business and assets of Russell Castings on 2 April 2004.
Under UK GAAP , a proportion of this negative goodwill was recognised through operating profit in 2004/05
in proportion to realisation of the assets acquired. Under IFRS 3, negative goodwill (also known as discount
on acquisition) must be recognised immediately. This has resulted in an increase in the recognition through
operating profit of £105,000 in the year to 31 March 2005.
A further revision relating to restatement of the provisional negative goodwill originally calculated on
acquisition and reported in the 31 March 2005 accounts is identified and its effect shown separately below
as it is not directly attributable to the change to IFRS (see also note 27).
IAS 7 Cash flow statements
The transition from UK GAAP to IFRS has no effect on reported cash flows generated by the Group. The IFRS
cash flow statement is presented in a different format from that required under UK GAAP with cash flows
split into three categories of activities, operating activities, investing activities and financing activities. The
reconciling items between the UK GAAP presentation and the IFRS presentation have no impact on the actual
cash flows generated.
IAS 10 Events after the balance sheet date
IAS 10 categorises events after the balance sheet date as “adjusting events” or “non-adjusting events”. In
most instances this corresponds with UK GAAP , but in the case of dividends proposed (accrued for under UK
GAAP) IAS 10 states that if an entity declares dividends after the balance sheet date, the entity shall not
recognise those dividends as a liability at the balance sheet date. This results in a reduction in current liabilities
of £587,000 at 1 April 2004 and £588,000 at 31 March 2005.
IAS 12 Income taxes
IAS 12 requires deferred tax to be calculated based on differences between the carrying value of assets or
liabilities and their tax base value rather than on the basis of timing differences. This has resulted in the Group
having to make provision under IFRS for deferred tax on a previously rolled over capital gain where no
provision was required under UK GAAP. This has resulted in an additional provision of £475,000 in the
accounts at 1 April 2004, 30 September 2004 and 31 March 2005. 
CHAMBERLIN & HILL plc  Annual Report 2006 58
26178 NOTES  28/6/06  7:30 pm  Page 58 28 EXPLANATION OF TRANSITION TO IFRS (continued)
IAS 12 Income taxes (continued)
In addition, a deferred tax asset relating to differences between the carrying value of property, plant and
equipment and their tax value at Russell Castings, previously not recognised under UK GAAP has now been
recognised (see note 17). This amounted to £50,000 as at 31 March 2005. Its effect is identified separately
in the reconciliations below.
Recognition of a pension scheme liability under IAS 19 (see below) has also resulted in the recognition of an
associated deferred tax asset under IAS 12. This amounted to £915,000 at 1 April 2004 and £996,000 at 
31 March 2005. The major element of the movement in the pension provision relates to actuarial adjustments
to the return on assets and level of pension obligations. As these amounts are disclosed in the statement of
recognised income and expense (“SORIE”) rather than in the income statement, the majority of the
movement in the deferred tax asset is also shown in the SORIE, and the remainder as part of the tax charge
to the income statement for each period. The amount credited to the SORIE in the year to 31 March 2005
relating to deferred tax on the actuarial funding movement was £94,000.
Where required, deferred tax has been provided for on all other IFRS adjustments. At 31 March 2005 this
resulted in an additional deferred tax liability of £31,000 relating to the additional recognition of negative
goodwill noted under IFRS 3 above.
IAS 16 Property, plant and equipment
As permitted by IFRS 1, the Group has elected, where appropriate, to use the revaluation carrying amount of
certain properties as the “deemed cost” on transition to IFRS.
The revaluation reserve previously disclosed under UK GAAP is transferred into retained earnings on transition
to IFRS, increasing retained earnings by £583,000 at 1 April 2004 and £575,000 at 31 March 2005. Software
included in tangible fixed assets under UK GAAP is classified as an intangible asset under IFRS. Amounts of
£46,000 at 1 April 2004 and £52,000 at 31 March 2005 have been reclassified and shown separately as
“Intangible assets – software” in the restated balance sheets.
IAS 19 Employee benefits
The Group had not adopted FRS 17 under UK GAAP before transition to IFRS, but was using SSAP 24 with
the additional disclosures required during the transition to FRS 17. On transition to IFRS, therefore, the
application of IAS 19 has resulted in the creation of a provision for the actuarial deficit in the Group’s defined
benefit pension scheme (see note 23). The associated deferred tax asset is noted under IAS 12 above.
The movements in actuarial valuations, not previously recognised under UK GAAP, have, from 1 April 2004
been recognised in the SORIE. The charge to the income statement under IFRS reflects the service  cost for
the period in operating profit, and the net finance cost of the pension scheme assets and liabilities is shown
in the finance cost line, as set out in note 6 above. The change from the charges made under UK GAAP has
resulted in increased operating profit of £204,000 in the year to 31 March 2005.
Finance costs have increased by £111,000 in the year to 31 March 2005.
An amount of £312,000 has been charged directly to retained profit in the year to 31 March 2005 relating
to the movements in the actuarial funding position of the scheme, as identified in note 23 above.
IAS 32 Financial instruments: Disclosure and presentation, and
IAS 39 Financial instruments: Recognition and measurement
The Group has elected not to apply IAS 32 and IAS 39 to periods ended on or prior to 31 March 2005. 
No significant adjustments have been identified that would have been required to these periods had IAS 32
and IAS 39 been adopted and applied retrospectively.
Restatement of goodwill on acquisition of the business and assets of Russell Castings 
Following transition to IFRS as at 1 April 2004, the adjustment to provisional goodwill outlined in note 27
above has an impact on the restated IFRS numbers as set out in a separate column below. The recognition of
the negotiated rent free period following acquisition has now been treated as an asset on acquisition and
amortised to the income statement over its useful life (i.e. the one year rent free period). The fair value of
that asset has been assessed as £200,000 based on the actual rent subsequently negotiated. The associated
increased negative goodwill (discount on acquisition) has been recognised through profit immediately. 
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 59
26178 NOTES  28/6/06  7:30 pm  Page 59 Notes to the Accounts
(continued)
28 EXPLANATION OF TRANSITION TO IFRS (continued)
Restatement of goodwill on acquisition of the business and assets of Russell Castings (continued)
The notional rent cost is a charge against underlying operating profit, whilst the recognition of goodwill
affects total operating profit, but is eliminated from the calculation of underlying operating profit.
At 31 March 2005, both the additional discount of £200,000 and the notional rent of £200,000 have been
recognised/charged to profit. There is no net effect on total operating profit, but underlying operating profit
has been reduced by the £200,000 rent charge. The underlying earnings per share figure for the year to 
31 March 2005 has been restated accordingly.
Reconciliations
The following tables reconcile the previously reported UK GAAP numbers with those now prepared under
IFRS, and identify separately the effect of the goodwill restatement and the deferred tax asset described
above.
Reconciliation of previously reported UK GAAP profit to IFRS profit for the year to 31 March 2005 
Effect of
Previously Recognition Effect of revising
reported of deferred transition goodwill on Restated
UK GAAP tax asset to IFRS IFRS acquisition IFRS
£000 £000 £000 £000 £000 £000
Revenue 41,970 – – 41,970
Operating profit 2,046 – 317 2,363
Finance revenues 10 – – 10 
Finance costs (70) – (111) (181)
Profit from continuing 
operations before tax 1,986 – 206 2,192
Income tax expense (665) 50 (43) (658)
Profit for the year 1,321 50 163 1,534
Earnings per share
basic p 18.0 0.7 2.2 20.9 – 20.9
underlying p 18.5 0.7 0.8 20.0 –1.9 18.1
diluted p 18.0 0.7 2.2 20.9 – 20.9
diluted underlying p 18.4 0.7 0.9 20.0 –1.9 18.1
CHAMBERLIN & HILL plc  Annual Report 2006 60
26178 NOTES  28/6/06  7:30 pm  Page 60 28 EXPLANATION OF TRANSITION TO IFRS (continued)
Reconciliation of UK GAAP equity shareholders’ funds to IFRS equity shareholders’ funds at 1 April 2004
Previously Effect of 
Group reported transition
UK GAAP to IFRS IFRS
£000 £000 £000
Non-current assets
Property, plant and equipment 8,770 (46) 8,724
Intangible assets – goodwill 201 – 201
Intangible assets – software – 46 46
Deferred tax assets – 915 915
8,971 915 9,886
Current assets
Inventories 3,496 – 3,496
Trade and other receivables 6,656 – 6,656
Cash and cash equivalents 482 – 482
10,634 – 10,634
Total assets 19,605 915 20,520
Capital and reserves
Share capital 1,835 – 1,835
Share premium 718 – 718
Capital redemption reserve 109 – 109
Revaluation reserve 583 (583) –
Retained earnings 10,237 (1,441) 8,796
Total equity 13,482 (2,024) 11,458
Current liabilities Bank overdraft – – –
Trade and other payables 5,195 (587) 4,608 
Income taxes payable 194 – 194 
5,389 (587) 4,802 
Non current liabilities Deferred tax 734 475 1,209
Defined benefit pension scheme deficit – 3,051 3,051
734 3,526 4,260 
Total equity and liabilities 19,605 915 20,520
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 61
26178 NOTES  28/6/06  7:30 pm  Page 61 Notes to the Accounts
(continued)
28 EXPLANATION OF TRANSITION TO IFRS (continued)
Reconciliation of UK GAAP equity shareholders’ funds to IFRS equity shareholders’ funds at 31 March 2005
Recognition
Group Previously of deferred Effect of 
reported tax asset transition
UK GAAP (note 17) to IFRS IFRS
£000 £000 £000 £000
Non-current assets
Property, plant and equipment 9,042 – (52) 8,990
Intangible assets – goodwill 83 – 118 201
Intangible assets – software – – 52 52
Deferred tax assets – 50 997 1,047
9,125 50 1,115 10,290
Current assets
Inventories 5,055 – – 5,055
Trade and other receivables 9,325 – – 9,325
Cash and cash equivalents 1 – – 1
14,381 – – 14,381
Total assets 23,506 50 1,115 24,671
Capital and reserves
Share capital 1,840 – – 1,840
Share premium 743 – – 743
Capital redemption reserve 109 – – 109
Revaluation reserve 575 – (575) –
Retained earnings 10,694 50 (1,498) 9,246
Total equity 13,961 50 (2,073) 11,938
Current liabilities Bank overdraft 43 – – 43
Trade and other payables 8,138 – (588) 7,550
Income taxes payable 638 – – 638
8,819 – (588) 8,231
Non current liabilities Deferred tax 676 – 506 1,182
Defined benefit pension 
scheme deficit 50 – 3,270 3,320
726 – 3,776 4,502
Total equity and liabilities 23,506 50 1,115 24,671
CHAMBERLIN & HILL plc  Annual Report 2006 62
26178 NOTES  28/6/06  7:30 pm  Page 62 28 EXPLANATION OF TRANSITION TO IFRS (continued)
Reconciliation of UK GAAP equity shareholders’ funds to IFRS equity shareholders’ funds at 1 April 2004
Previously Effect of 
Company reported transition
UK GAAP to IFRS IFRS
£000 £000 £000
Non-current assets
Property, plant and equipment 5,012 (4) 5,008
Intangible assets – software – 4 4
Investments 7,159 – 7,159
Deferred tax assets – 915 915
12,171 915 13,086
Current assets
Inventories 1,038 – 1,038
Trade and other receivables 4,338 – 4,338
Cash and cash equivalents 1 – 1
5,377 – 5,377
Total assets 17,548 915 18,463
Capital and reserves
Share capital 1,835 – 1,835
Share premium 718 – 718
Capital redemption reserve 109 – 109
Revaluation reserve 583 (583) –
Retained earnings 9,412 (1,358) 8,054
Total equity 12,657 (1,941) 10,716
Current liabilities Bank overdraft 262 – 262
Trade and other payables 3,022 (587) 2,435
Amounts due to subsidiary companies 849 – 849
Income taxes payable 44 – 44
4,177 (587) 3,590 
Non current liabilities Trade and other payables 120 – 120
Deferred tax 594 392 986
Defined benefit pension scheme deficit – 3,051 3,051
714 3,443 4,157 
Total equity and liabilities 17,548 915 18,463
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 63
26178 NOTES  28/6/06  7:30 pm  Page 63 Notes to the Accounts
(continued)
28 EXPLANATION OF TRANSITION TO IFRS (continued)
Reconciliation of UK GAAP equity shareholders’ funds to IFRS equity shareholders’ funds at 31 March 2005
Previously Effect of 
Company reported transition
UK GAAP to IFRS IFRS
£000 £000 £000
Non-current assets
Property, plant and equipment 4,661 (19) 4,642
Intangible assets – software – 19 19
Investments 7,159 – 7,159
Deferred tax assets – 997 997
11,820 997 12,817
Current assets
Inventories 1,319 – 1,319
Trade and other receivables 5,951 – 5,951
Cash and cash equivalents 1 – 1
7,271 – 7,271
Total assets 19,091 997 20,088
Capital and reserves
Share capital 1,840 – 1,840
Share premium 743 – 743
Capital redemption reserve 109 – 109
Revaluation reserve 575 (575) –
Retained earnings 8,346 (1,502) 6,844
Total equity 11,613 (2,077) 9,536
Current liabilities Bank overdraft 2,026 – 2,026
Trade and other payables 3,547 (588) 2,959
Amounts due to subsidiary companies 1,264 – 1,264
Income taxes payable 1 – 1
6,838 (588) 6,250 
Non current liabilities Trade and other payables 66 – 66
Deferred tax 524 392 916
Defined benefit pension scheme deficit 50 3,270 3,320
640 3,662 4,302 
Total equity and liabilities 19,091 997 20,088
CHAMBERLIN & HILL plc  Annual Report 2006 64
26178 NOTES  28/6/06  7:30 pm  Page 64 29 RELATED PARTY TRANSACTIONS
Group
The Group did not enter into any third party transactions with related parties during the year.
Company
The Company provides certain management services to subsidiary companies and makes charges accordingly.
The total amount charged in the year was £87,000 (2005: £118,000).
The Company transfers cash balances at the start of each financial year to zero the opening balances of
subsidiaries. The total amount transferred from subsidiaries at the start of the year to 31 March 2006 was
£1,983,000 (2005: £744,000).
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.
On 31 March 2006, the Company sold its foundry business and assets to a formerly dormant subsidiary,
Phoenix Foundry (Bloxwich) Limited, which then changed its name to Chamberlin & Hill Castings Limited, at
book value. Balances transferred are set out below.
Assets sold to subsidiary £000
Property, plant and equipment 2,439
Software 17
Development cost asset 130
Trade and other receivables 3,306
Inventories 986
Trade and other payables (2,748)
Deferred tax liability (201)
Cash 942 
Total assets sold to subsidiary 4,871
Consideration (outstanding amount owing from subsidiary) 4,871
Compensation of key management personnel (including directors)
Group Company
2006 2005 2006 2005
£000 £000 £000 £000
Short term employee benefits 979 992 520 531
Share based payments 19 5 19 5
Pension contributions 70 66 31 32
1,068 1,063 570 568
Key management, other than directors of the Company, comprise the Managing Directors and Finance
Directors of the main operating subsidiaries.
Notes to the Accounts
(continued)
Annual Report 2006  CHAMBERLIN & HILL plc 65
26178 NOTES  28/6/06  7:30 pm  Page 65 Directors and Advisors
Directors
Tom Brown MA MBA (Non-executive Chairman)
Barrie Williams MSc CEng MICME (Chief Executive)
Simon Duckworth BA ACA (Finance Director)
Adam Vicary MSc BEng (Foundry Operations Director)
Keith Jackson MA MBA (Non-executive)
Nick Kuenssberg OBE BA FCIS CCMI FIoD (Non-executive)
Tim Hair (appointed 5 June 2006 – Chief Executive Designate)
Advisors
Company Secretary Simon Duckworth
Registered Office Chuckery Foundry,
Walsall WS1 2DU
Registered in England No. 76928
Auditors Ernst & Young LLP,
Birmingham
Solicitors Eversheds LLP,
Birmingham
Stockbrokers Teather & Greenwood Limited,
London
Bankers HSBC Bank plc,
Birmingham
Registrars Neville Registrars Limited,
Neville House,
18 Laurel Lane,
Halesowen,
West Midlands B63 3DA
CHAMBERLIN & HILL plc  Annual Report 2006 66
26178 NOTES  28/6/06  7:30 pm  Page 66 Notice is hereby given that the Annual General Meeting of the Company will be held on Friday 28 July 2006 at
the Registered Office, Chuckery Foundry, Walsall at 12.30 p.m. for the following purposes.
Ordinary business
1. To receive and adopt the Report of the Directors, Statement of Accounts
(Resolution 1)
2. To declare a Final Dividend for the year ended 31 March 2006 of 
8.0pence per Ordinary Share to be paid to members whose names appear 
on the register of members at the close of business on 7 July 2006. (Resolution 2)
3. To re-elect as a Director Nick Kuenssberg who is retiring by rotation 
(Resolution 3)
4. To re-appoint as a Director Keith Jackson who is retiring pursuant to 
Article 112 of the Company’s Articles of Association having been appointed 
by the directors during the year. (Resolution 4)
5. To re-appoint as a Director Tim Hair who is retiring pursuant to 
Article 112 of the Company’s Articles of Association having been appointed 
by the directors since the year end. (Resolution 5)
6. To approve the Directors’ Remuneration Report for the year ended 31 March 2006. (Resolution 6)
7. To reappoint Ernst & Young LLP as Auditors of the Company and to authorise 
(Resolution 7)
8. To consider and, if thought fit, pass the following as a special resolution. 
That:
8.1 the Directors be and are hereby generally and unconditionally authorised in accordance with Section 80 of
the Companies Act 1985 (in substitution for any existing power to allot relevant securities) to exercise all the
powers of the Company to allot relevant securities (within the meaning of the said Section 80) up to an
aggregate nominal amount of £410,085.50 provided that such authority shall expire at the earlier of the
conclusion of the next Annual General Meeting of the Company or 31 October 2007, 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 relevant securities to be allotted after such expiry and notwithstanding such expiry
the Directors may allot relevant securities in pursuance to such offers or agreements; and
8.2 pursuant to and in accordance with the provisions of Article 18 of the Company’s Articles of Association the
Directors be empowered (in substitution for any existing authority to allot relevant securities) to allot equity
securities (as defined in Section 94 of the Companies Act 1985) for cash pursuant to the general authority
given to them for the purposes of Section 80 of the Act as if Section 89(1) of the Companies Act 1985 did
not apply to such allotment:
(i) up to an aggregate nominal amount of £91,995; and
(ii) such authority to expire at the earlier of the conclusion of the next Annual General Meeting, of the
Company or 31 October 2007, 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 relevant securities to be
allotted after such expiry and notwithstanding such expiry the Directors may allot relevant securities in
pursuance of such offers or agreements. (Resolution 8)
Notice of Annual General Meeting
Annual Report 2006  CHAMBERLIN & HILL plc 67
26178 NOTES  28/6/06  7:30 pm  Page 67
and Report of the Auditors for the year ended 31 March 2006.
pursuant to Article 108 of the Company’s Articles of Association.
the Directors to fix their remuneration. 
Special business Notice of Annual General Meeting
(continued)
9. To consider and, if thought fit, pass the following as a special resolution:
That the Company be and hereby is generally and unconditionally authorised pursuant to Article 12 of the
Articles of Association of the Company and pursuant to section 166 of the Companies Act 1985 to make
market purchases (within the meaning of section 163(3) of the Companies Act 1985) of Ordinary Shares of
25p each in the capital of the Company (“Ordinary Shares”) on such terms and in such manner as the
Directors may from time to time determine provided that:-
(i) the maximum number of Ordinary Shares which may be purchased is 735,900;
(ii) the minimum price which may be paid for each Ordinary Share is 25 pence;
(iii) the maximum price which may be paid for each Ordinary Share is an amount equivalent to 105 per cent.
of the average of the middle market quotations for an Ordinary Share as derived from the Daily Official
List of the London Stock Exchange Plc for the five dealing days immediately preceding the day on which
the Ordinary share in question is purchased; and
(iv) the authority hereby conferred shall expire at the earlier of the conclusion of the next Annual General
Meeting of the Company or 31 October 2007 (except in relation to the purchase of Ordinary Shares
the contract for which remains wholly or partly executory at that time) unless such authority is renewed
prior to that time. (Resolution 9)
By order of the Board
Simon Duckworth Chuckery Foundry
Company Secretary Walsall
15 June 2006 WS1 2DU
General Information
Any member of the Company entitled to attend and vote may appoint another person (whether a member or not)
as his proxy to attend and vote on a poll instead of him, for which purpose a form of proxy is enclosed. Proxies
must be lodged at the office of the Company’s Registrars, Neville Registrars Ltd, 18 Laurel Lane, Halesowen,
West Midlands B63 3DA, not later than 48 hours before the time of the Meeting. Completion and return of the
form of proxy in accordance with its instructions will not prevent a member from attending and voting at the
Meeting instead of their proxy if they wish.
Warrants for the final dividend, if approved at the Meeting, will be posted on 28 July 2006 to shareholders
registered at the close of business on 7 July 2006.
There will be available for inspection at the Registered Office of the Company during normal business hours
(Saturdays and Public Holidays excepted) from the date of this notice until the conclusion of the Annual 
General Meeting:-
(a) the register of Directors’ interests in shares of the Company kept pursuant to Section 325 of the Companies
Act 1985; and
(b) copies of contracts of service of Directors with the Company or with any of its subsidiary undertakings.
An explanation of Resolutions 8 and 9 is set out in the Report of the Directors on pages 13 and 14.
Members should notify the Registrars without delay of any change of address.
CHAMBERLIN & HILL plc  Annual Report 2006 68
26178 NOTES  28/6/06  7:30 pm  Page 68 Contents
Highlights 1
Activities and Markets 2
Chairman’s Statement 4
Chief Executive’s Review 6
Financial Review 8
Report of the Directors 10
Corporate Governance 16
Directors’ Remuneration Report 19
Independent Auditors’ Report 23
Consolidated Income Statement 26
Consolidated Statement of Recognised
Income and Expense 27
Parent Company Statement of Recognised
Income and Expense 27
Consolidated Balance Sheet 28
Parent Company Balance Sheet 29
Consolidated Cash Flow Statement 30
Parent Company Cash Flow Statement 31
Notes to the Accounts 32
Directors and Advisors 66
Notice of Annual General Meeting 67
Manufacturing Units
Principal activities and markets
CHAMBERLIN & HILL CASTINGS LTD
Walsall Foundry
Chuckery Road
Walsall, WS1 2DU
Tel: 01922 721411   Fax: 01922 638370
Small repetition grey iron castings, principally for the automotive
sector and hydraulic applications.
RUSSELL DUCTILE CASTINGS LTD
Dawes Lane
Scunthorpe
Tel: 01724 862152   Fax: 01724 280461
Bonchurch Street
Leicester LE3 5EP
Tel: 0116 299 2000   Fax: 0116 299 8844
Castings from 1kg to 5,000kg in ductile, ADI, alloyed and grey 
iron principally for use in commercial vehicles, materials handling,
power generation, industrial and railway applications.
PFP ELECTRICAL PRODUCTS LTD
Fortnum Close, Mackadown Lane
Kitts Green, Birmingham B33 0LB
Tel: 0121 783 7161   Fax: 0121 783 5717
Products associated with cable management. Lighting and switchgear
associated with petrochemicals and construction applications.
FRED DUNCOMBE LTD
Progress Drive
Cannock, WS11 0JE
Tel: 01543 578661   Fax: 01543 570050
Emergency exit equipment and traditional architectural hardware
directed mainly at the DIY and construction markets.
Chamberlin & Hill plc is a leading foundry
and engineering group providing specialised
castings and safety/security products to a wide
variety of industries across the world
Welcome to
Chamberlin & Hill plc
of castings in:
Grey Iron
Malleable Iron
Ductile Iron
Austempered Iron
Ni Hard
Ni Resist
Stainless Steel
Carbon Steel
Alloy Steel
Alloyed Irons
Chamberlin & Hill
Castings Ltd
26178 Cover  28/6/06  5:52 pm  Page 3
Preferred supplier Chamberlin & Hill plc 
Chamberlin & Hill plc
Chuckery Foundry, Walsall, West Midlands WS1 2DU
Tel: 01922 721411   Fax: 01922 638370
website: www.chamberlin.co.uk
email: plc@chamberlin.co.uk
Report and Accounts
26178 Cover  28/6/06  5:52 pm  Page 1
Chamberlin & Hill plc     Report and Accounts 2006