20 May 2026

Chesterfield Special Cylinders Holdings plc

("CSC " or the "Company")

 

2026 Interim Results

 

Chesterfield Special Cylinders Holdings plc (AIM: CSC) announces its unaudited interim results for the 26 weeks to 28 March 2026 ("the period").

Financial results

		H1 FY26	H1 FY25	FY25
		£m	£m	£m
	Revenue	6.4	5.4	16.6
	Gross profit1	2.1	1.4	6.4
	Adjusted EBITDA2	(0.6)	(1.3)	0.8
	Adjusted operating (loss)/profit3	(1.0)	(1.7)	0.0
	Loss before tax	(1.1)	(2.5)	(0.8)
	Cash balance	1.1	1.9	2.1
	Net cash4	0.6	1.4	1.8
		Pence	Pence	Pence
	Basic loss per share	(2.8)	(6.4)	(1.6)
	Adjusted loss per share5	(2.8)	(5.0)	(0.0)

1 A restatement has been made to reflect a re-classification of labour costs from cost of sales to administration expenses. See Note 14

2 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and other exceptional costs

3 Adjusted operating loss is operating loss before disposal of discontinued operation, amortisation and other exceptional costs

4 Net cash comprises cash and cash equivalents, borrowings, asset finance lease liabilities and right of use asset lease liabilities

5 Adjusted loss per share is loss per share before disposal of discontinued operations, exceptional costs and theoretical tax adjustments

Highlights

●	First-half trading broadly in line with management expectations, with revenue of £6.4 million (2025: £5.4 million) and an adjusted EBITDA loss of £0.6 million (2025: loss £1.3 million)
●	Defence revenue of £5.0 million (2025: £4.4 million) reflects the phasing of newbuild contract milestones weighted heavily towards the second half of the year, and Integrity Management naval deployments
●	Completion milestones delivered for UK submarine and surface ship newbuild programmes. Technical preparation commenced for SSN-A (AUKUS) to enable early contract milestone delivery from FY27
●	Order book strengthened by key overseas defence contract wins, while existing overseas submarine and surface ship contracts progressed for Australian, Canadian, Spanish and French naval customers
●	US Navy initial product trials completed in the first half of the year, with manufacturing stages on track to commence in the second half towards first product delivery in 2027
●	Integrity Management revenue of £1.3 million (2025: £2.1 million) follows record FY25 performance. Some UK naval deployments originally expected in FY26 postponed into FY27 due to delayed docking schedules
●	First order secured for Integrity Management services on overseas naval submarines in the first half, with European deployment in the second half and further overseas opportunities in the pipeline for FY27
●	Hydrogen revenue of £0.9 million (2025: £0.7 million) reflects in-factory lifecycle support services for static storage and road trailers
●	Continued delays to the rollout of UK Hydrogen Allocation Round (HAR) projects. Any related contract wins in the second half will be too late to benefit FY26 results
●	Cautious cost management measures are in place to help mitigate the impact of delays, and further cost management steps are available if delays continue
●	Successful renewal of property lease provides long-term security for Sheffield manufacturing operations and results in a revised carrying value of land and building assets from £2.6 million to £4.9 million

Outlook

●	Profitable second half supports expected full-year revenue and adjusted EBITDA at similar levels to prior year (2025: revenue £16.6 million, adjusted EBITDA £0.8 million), in line with 30 April 2026 trading update
●	Uncertainty remains around the rollout of UK government-backed hydrogen projects included in our mid-term growth targets, although HAR contract awards are still possible in FY26
●	Overall, the outlook and prospects for the Company are underpinned by a robust defence order book and strong contract pipeline across UK and overseas naval newbuild programmes

 

Chris Walters, Chief Executive of Chesterfield Special Cylinders Holdings plc, commented:

"First-half trading was broadly in line with our expectations, and we still anticipate a strong and profitable second-half performance, supporting FY26 market forecasts with full-year revenue and adjusted EBITDA at levels similar to FY25.

Following a record full-year Integrity Management performance in FY25, some UK naval deployments originally expected in FY26 have been postponed into FY27 due to delayed docking schedules. However, we were pleased to secure our first ever Integrity Management contract for overseas naval submarines in the first half, with European deployments starting early in the second half.

The continued slippage of hydrogen projects under the UK government's HAR programme has been frustrating and disruptive. While uncertainty remains around projects included in our mid-term growth targets, HAR contract awards are still possible in FY26, and we remain actively engaged with hydrogen customers and operationally prepared to undertake large-scale storage projects.

Overall, our outlook and prospects are underpinned by a robust defence order book and strong pipeline of opportunities across UK and overseas naval newbuild programmes."

 

For further information, please contact:

Chesterfield Special Cylinders Holdings plc Chris Walters, Chief Executive Sally Millen, Director of Finance	Tel: 0333 015 0710 [email protected]
Singer Capital Markets (Nomad and Broker) Rick Thompson / Peter Steel / Carl Diebitsch	Tel: 0207 496 3000

COMPANY DESCRIPTION www.csc-holdings.com and www.chesterfieldcylinders.com

Chesterfield Special Cylinders is a world-leading designer and manufacturer of high-pressure gas storage and transportation systems, used principally in safety-critical defence and hydrogen energy applications, and provides inspection, testing and recertification services throughout the system lifecycle.

Business review

In the first half of FY26, trading for Chesterfield Special Cylinders ("CSC") was broadly in line with management's expectations, with revenue of £6.4 million (2025: £5.4 million) and an adjusted EBITDA loss of £0.6 million after central costs (2025: loss £1.3 million).

Defence

Defence revenue of £5.0 million (2025: £4.4 million) reflects the phasing of defence contracts, weighted heavily towards the second half of the year, and Integrity Management naval deployments.

Completion milestones for the UK Dreadnought submarine and Type 26 frigate newbuild programmes were delivered during the first half of the year. Technical preparation also commenced for the SSN-A (AUKUS) Astute replacement programme, to enable early contract milestone delivery in FY27.

Progress continued during the first half with the delivery of contract milestones for existing overseas submarine and surface ship projects for Australian, Canadian, Spanish and French naval customers.

Initial product trials were completed in the first half of the year for US Navy supplier qualification, with manufacturing stages on track to commence in the second half of the year towards first product delivery in 2027.

Good strategic progress is being made in defence, where the order book was strengthened by key overseas submarine newbuild contract awards in the first half and early in the second half, including the previously announced order from French prime contractor Naval Group for the Scorpène-class submarine programme.

Integrity Management services

Following record full-year performance in FY25, Integrity Management services revenue was £1.3 million (2025: £2.1 million) in the first half, with some UK naval deployments originally expected in FY26 postponed into FY27 due to delayed fleet docking schedules.

At the end of the first half, we were pleased to secure our first order for Integrity Management services on overseas naval submarines, with deployment early in the second half of FY26. Further overseas naval Integrity Management opportunities are in the pipeline for FY27.

Hydrogen

Hydrogen revenue of £0.9 million (2025: £0.7 million) reflects in-factory lifecycle support services for static storage and road trailers.

Continued delays to the rollout of projects under the UK government's Hydrogen Allocation Rounds (HAR) are frustrating and disruptive for CSC and the wider supply chain.

Although the UK government continues to affirm its commitment to domestic green hydrogen production over the longer term, the delays to HAR projects reflect policy and regulatory uncertainty, the inflationary pressure on project economics due to high energy prices and borrowing costs, grid connection constraints and the slower-than-anticipated progression of customer offtake agreements.

Hydrogen contract awards are still possible in the second half of the year, however they will be too late to benefit FY26 results.

Post period end property lease renewal

On 6 May 2026, the Company announced that it had successfully renewed the lease on three acres of land adjacent to its existing freehold site in Sheffield. The lease renewal provides long-term security for the Company's manufacturing operations and has resulted in a revised carrying value of land and building assets from £2.6 million to £4.9 million.

Outlook

The Company still anticipates a profitable second half, supporting full-year revenue and adjusted EBITDA performance at similar levels to the previous year (2025: revenue of £16.6 million, adjusted EBITDA of £0.8 million).

While uncertainty remains around the rollout of UK hydrogen projects included within our mid-term growth targets, we remain actively engaged with customers and operationally prepared to undertake large-scale hydrogen storage projects. Cautious cost management measures are in place to help mitigate the impact of these delays, and further cost management steps are available if the delays continue.

Overall, the outlook and prospects for the Company are underpinned by a robust defence order book and strong pipeline of opportunities across UK and overseas submarine and surface ship newbuild programmes. 

 

 

Chris Walters

Chief Executive

19 May 2026

Financial review

Revenue and profitability

Revenue of £6.4 million (2025: £5.4 million) in the first half of FY25 generated gross profit of £2.1 million at 33% margin (2025 restated: £1.4 million at 27% margin).

Overhead costs of £3.2 million in the period (2025 restated: £3.2 million) resulted in an adjusted operating loss of £1.0 million (2025: loss £1.7 million).

Allowing for depreciation charges of £0.4 million (2025: £0.4 million), the adjusted EBITDA loss was £0.6 million (2025: loss of £1.3 million). Exceptional costs of £44,000 were incurred in the period, being principally advisory fees relating to the renewal of the Sheffield property lease (2025: £0.7 million, reflecting cost related to disposal of the PMC division), see Note 5.

Operating cash flow and capital expenditure

Operating cash outflow in the period was £0.7 million (2025: outflow £0.5 million), arising primarily from an adjusted EBITDA loss of £0.6 million (2025: adjusted EBITDA loss of £1.3 million).

Capital expenditure in the period was £0.1 million (2025: £0.2 million), incurred principally for the replacement and maintenance of site facilities and equipment.

Cash balances, borrowings and liquidity

The cash balance at the end of the period was £1.1 million (2025: £1.9 million), reflecting the operating cash outflow and capital expenditure in the period. On 19 May 2026, the cash balance was £2.3 million.

The net cash position of £0.6 million (2025: £1.4 million) comprised the period-end cash balance less borrowings of £nil (2025: £nil) and lease liabilities totalling £0.5 million (2025: £0.4 million).

Impairment reviews

The Company tests periodically for impairment, in accordance with IAS 36, if there are indicators that tangible fixed assets might be impaired. An impairment review was undertaken for CSC as at 28 March 2026. The review concluded that no impairment was required in these Interim Results.

Events after the balance sheet date

On 6 May 2026, the Company announced that it had successfully renewed the lease on three acres of land adjacent to its existing freehold site in Sheffield, resulting in a material change to the value of property assets on the Company's balance sheet.

The previously remaining leasehold term at the end of September 2025 was less than twenty years and the total value of the Company's land and building assets at the end of September 2025 was £2.6 million.

The new 125-year lease provides long-term security for the Company's manufacturing operations and results in a revised carrying value of the combined property asset of £4.9 million, comprising the existing freehold of £2.6 million and a £2.3 million right-of-use asset for the new lease (see Note 15).  This carrying value is in line with a valuation of the Company's land and building assets of £4.9 million, as assessed by independent chartered surveyors, Knight Frank, in March 2026.

 

Chris Walters

Chief Executive

19 May 2026

Condensed Consolidated Statement of Comprehensive Income

 

For the 26 weeks ended 28 March 2026

 

		Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025 *Restated	Audited 52 weeks ended 27 September  2025
	Notes	£'000	£'000	£'000
Revenue	4	6,363	5,383	16,583
Cost of sales		(4,234)	(3,950)	(10,197)
Gross profit		2,129	1,433	6,386
Administration expenses		(3,167)	(3,169)	(6,343)
Operating (loss) / profit before disposal of discontinued operation and exceptional costs		(1,038)	(1,736)	43
Separately disclosed items of administrative expenses: Exceptional costs	5	(44)	(716)	(790)
Operating loss		(1,082)	(2,452)	(747)
Finance costs		(35)	(26)	(62)
Loss before taxation		(1,117)	(2,478)	(809)
Taxation	6	22	5	192
Loss for the period from continuing operations		(1,095)	(2,473)	(617)
Profit for the period from discontinued operations          10		-	263	263
Loss for the period attributable to the owners of the parent		(1,095)	(2,210)	(354)
Other comprehensive expense to be reclassified to profit or loss in subsequent periods: Currency exchange differences on translation of foreign operations		1	(3)	2
Total comprehensive expense for the period attributable to the owners of the parent		(1,094)	(2,213)	(352)
(Loss) / earnings per share - basic and diluted
From continuing operations	7	(2.8)p	(6.4)p	(1.6)p
From discontinued operations	7	-	0.7p	0.7p
From total loss for the period	7	(2.8)p	(5.7)p	(0.9)p

 

 

*The condensed consolidated statement of comprehensive income for the prior 26-week period has been restated (see Note 14) to reflect a re-classification of labour costs from cost of sales to administration expenses. There is no impact on the overall result for the financial period. This re-classification was already applied in the audited statutory accounts for the 52 weeks ended 27 September 2025. In addition, the profit on disposal of the discontinued operation has been included within the profit for the period from discontinued operations in line with the treatment applied in the audited statutory accounts for the 52 weeks ended 27 September 2025 (see Note 14).

Condensed Consolidated Statement of Financial Position

 

As at 28 March 2026

		Unaudited 28 March 2026	Unaudited 29 March 2025	Audited 27 September 2025
	Notes	£'000	£'000	£'000
Non-current assets			*Restated
Intangible assets		-	-	-
Property, plant and equipment and right of use assets		6,336	6,625	6,382
Contract assets		74	291	-
Deferred tax asset		803	626	803
		7,213	7,542	7,185
Current assets
Inventories		2,576	2,699	2,618
Trade and other receivables		4,005	3,161	5,568
Cash and cash equivalents	9	1,130	1,857	2,130
		7,711	7,717	10,316
Total assets		14,924	15,259	17,501
Current liabilities
Trade and other payables		(3,464)	(4,306)	(5,492)
Lease liabilities	9	(229)	(218)	(219)
		(3,693)	(4,524)	(5,711)
Non-current liabilities
Trade and other payables		(721)	(999)	(274)
Lease liabilities	9	(253)	(217)	(143)
Deferred tax liabilities		(535)	(567)	(557)
		(1,509)	(1,783)	(974)
Total liabilities		(5,202)	(6,307)	(6,685)
Net assets		9,722	8,952	10,816
Equity
Share capital	11	1,933	1,933	1,933
Share premium account	11	1,699	1,699	1,699
Translation reserve		(261)	(267)	(262)
Retained earnings		6,351	5,587	7,446
Total equity		9,722	8,952	10,816

 

 

*The condensed consolidated statement of financial position as at 29 March 2025 has been restated (see Note 14) to reflect a re-classification of contract balances and deferred income from current to non-current. The restatement has had nil impact on the result for the period and nil impact on net asset at the balance sheet date. This re-classification was already applied in the audited statutory accounts as at 27 September 2025.

 

Condensed Consolidated Statement of Changes in Equity

 

For the 26 weeks ended 28 March 2026

	Share capital	Share premium account	Translation reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000
Balance at 27 September 2025 (audited)	1,933	1,699	(262)	7,446	10,816
Loss for the period	-	-	-	(1,095)	(1,095)
Exchange differences arising on retranslation of foreign operations	-	-	1	-	1
Total comprehensive income / (expense)	-	-	1	(1,095)	(1,094)
Balance at 28 March 2026 (unaudited)	1,933	1,699	(261)	6,351	9,722

 

For the 26 weeks ended 29 March 2025

 

	Share capital	Share premium account	Translation reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000
Balance at 28 September 2024 (audited)	1,933	1,699	(264)	7,793	11,161
Share based payments - continuing operations	-	-	-	4	4
Transactions with owners	-	-	-	4	4
Loss for the period	-	-	-	(2,210)	(2,210)
Exchange differences arising on retranslation of foreign operations	-	-	(3)	-	(3)
Total comprehensive expense	-	-	(3)	(2,210)	(2,213)
Balance at 29 March 2025 (unaudited)	1,933	1,699	(267)	5,587	8,952

 

 

 

 

 

Condensed Consolidated Statement of Changes in Equity (continued)

 

For the 52 weeks ended 27 September 2025

	Share capital	Share premium account	Translation reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000
Balance at 28 September 2024 (audited)	1,933	1,699	(264)	7,793	11,161
Share based payments - continuing operations	-	-	-	7	7
Transactions with owners	-	-	-	7	7
Loss for the period	-	-	-	(354)	(354)
Exchange differences arising on translating foreign operations	-	-	2	-	2
Total comprehensive income / (expense)	-	-	2	(354)	(352)
Balance at 27 September 2025 (audited)	1,933	1,699	(262)	7,446	10,816

 

 

Condensed Consolidated Cash Flow Statement

 

For the 26 weeks ended 28 March 2026

	Notes		Unaudited 26 weeks  ended 28 March 2026		Unaudited 26 weeks ended 29 March 2025		Audited 52 weeks ended 27 September 2025
			£'000		£'000		£'000
Operating activities
Operating cashflow		8	(682)		(453)		266
Exceptional costs			(44)		(716)		(790)
Finance costs paid			(35)		(26)		(62)
Net cash outflow from operating activities			(761)		(1,195)		(586)
Investing activities
Proceeds from sale of PMC division			-		4,392		4,392
Purchase of property, plant and equipment			(128)		(203)		(302)
Net cash (outflow) / inflow from investing activities			(128)		4,189		4,090
Net cash (outflow) / inflow before financing			(889)		2,994		3,504
Financing activities
Repayment of borrowings			-		(1,000)		(1,000)
Repayment of lease liabilities			(111)		(123)		(262)
Net cash outflow from financing activities			(111)		(1,123)		(1,262)
Net (decrease) / increase in cash and cash equivalents			(1,000)		1,871		2,242
Cash and cash equivalents at beginning of period			2,130		470		116
Cash and cash equivalents at end of period			1,130		2,341		2,358
Cash and cash equivalents of asset group disposed			-		(484)		(228)
Cash and cash equivalents at end of period			1,130		1,857		2,130
Lease liabilities			(482)		(435)		(362)
Net Cash		9	648		1,422		1,768

The cash movements of the discontinued operation (previously a disposal group held for sale) in the comparative periods are detailed in Note 10.

Notes to the Condensed Consolidated Interim Financial Statements

 

1.   General information

 

Chesterfield Special Cylinders Holdings plc is incorporated in England and Wales and is quoted on AIM, a market operated by the London Stock Exchange.

 

These unaudited interim condensed consolidated financial statements for the 26 weeks ended 28 March 2026 were approved by the Board of Directors on 19 May 2026.

 

These financial statements may contain certain statements about the outlook for Chesterfield Special Cylinders Holdings plc. Although the Directors believe their expectations are based on reasonable assumptions, any statements about the outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

 

2.  Basis of preparation

 

The Company's unaudited interim results for the 26 weeks ended 28 March 2026 ("Interim Results") are prepared in accordance with the Company's accounting policies which are based on the recognition and measurement principles of the UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006. As permitted, the Interim Results have been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting" and therefore the interim information is not in full compliance with International Accounting Standards.

 

The interim condensed consolidated financial statements are prepared under the historical cost convention as modified to include the revaluation of certain financial instruments. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual consolidated financial statements for the year ended 27 September 2025. The principal accounting policies of the Company have remained unchanged from those set out in the Company's 2025 annual report and financial statements.  The Principal Risks and Uncertainties of the Company are also set out in the Company's 2025 annual report and financial statements and are unchanged in the period.

 

The financial information for the 26 weeks ended 28 March 2026 and 29 March 2025 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.

 

The Company's 2025 financial statements for the 52 weeks ended 27 September 2025 were prepared under UK-adopted International Accounting Standards. The auditor's report on these financial statements was unqualified and did not contain statements under Sections 498(2) or (3) of the Companies Act 2006 and they have been filed with the Registrar of Companies.

 

3.  Going concern

 

The interim condensed financial statements have been prepared on a going concern basis. Projections for the period to the end of May 2027 demonstrate that the Company, including its subsidiaries, can continue to operate and meet its financial obligations as they fall due for at least twelve months from the date of approval of the accounts. The Directors have not identified any material uncertainties that may cast significant doubt on the ability of the Company to continue to operate as a going concern. Factors likely to affect the Company's future development, performance and position are set out in the Company's 2025 annual report and financial statements.

At the end of the reporting period, the Company had no bank loans, overdrafts or other related financial liabilities.

The Company's systems for financial planning, management and control include a comprehensive budgeting process, with annual budgets approved by the Directors. Monthly monitoring of actual results against budget by the Directors is a standard practice, as is the quarterly review of financial forecasts, which consider operational performance, trading conditions and market opportunities.

Financial projections recognise that the Company remains dependent on the trading profitability of CSC, which is itself dependent on revenues from major UK and overseas defence contracts, UK hydrogen orders and high-value Integrity Management services.

Due to the significance of revenues from UK hydrogen projects in the 3YP from FY27 onwards, noting the history of delays and the uncertain outlook in this market, the Directors have considered scenarios that account for the loss of all future hydrogen newbuild projects. The Directors have also considered further sensitised scenarios that account for reasonably plausible delays to the placement of UK and overseas defence contracts, in addition to the loss of future hydrogen newbuild projects.

The Directors believe that the loss of future hydrogen contracts and material delays to defence contracts would give the Company sufficient time to take mitigating actions and adjust operating costs and capital expenditure plans to maintain liquidity and sufficient cash headroom throughout the forecast period. These mitigations have been included in the sensitised scenarios considered by the Directors in their confirmation of the going concern basis of preparation.

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss

 

Revenue by destination	Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
	£'000	£'000	£'000
United Kingdom	4,312	3,974	11,058
Europe	1,327	851	2,281
Rest of the World	724	558	3,244
	6,363	5,383	16,583

 

Revenue by sector

 

	Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
	£'000	£'000	£'000
Defence	4,965	4,445	12,761
Hydrogen Energy	868	653	2,608
Industrial	417	196	485
Offshore services	113	89	729
	6,363	5,383	16,583

 

Revenue recognition

 

The Company's pattern of revenue recognition is as follows:

 

	Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
	£'000	£'000	£'000
Sale of goods transferred at a point in time	2,965	2,032	4,513
Sale of goods transferred over time	2,073	1,241	7,227
Rendering of services	1,325	2,110	4,843
	6,363	5,383	16,583

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss (continued)

 

 

For the 26-week period ended 28 March 2026 (unaudited)

 

		CSC operations1	Central costs2	Total
		£'000	£'000	£'000
Revenue from external customers		6,363	-	6,363
Gross profit		2,129	-	2,129
Adjusted EBITDA		(211)	(422)	(633)
Depreciation		(367)	(38)	(405)
Operating loss before exceptional costs		(578)	(460)	(1,038)
Exceptional costs		(18)	(26)	(44)
Operating loss		(596)	(486)	(1,082)
Net finance costs		(18)	(17)	(35)
Loss before tax		(614)	(503)	(1,117)
Segmental net assets / (liabilities)3		10,070	(348)	9,722
Other segment information:
Taxation credit	18		4	22
Capital expenditure - property, plant and equipment	360		-	360

 

1 CSC operations comprise the results of the Chesterfield Special Cylinders Limited trading subsidiary and its subsidiaries.

2 Central costs comprise costs related to the public listing of Chesterfield Special Cylinders Holdings plc.

3 Segmental net assets / (liabilities) comprise the net assets of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries.

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss (continued)

 

 

For the 26-week period ended 29 March 2025 (unaudited) - continuing operations only, restated*

 

		CSC operations1 Restated*	Central costs2	Total Restated*
		£'000	£'000	£'000
Revenue from external customers		5,383	-	5,383
Gross profit (Restated)		1,433	-	1,433
Adjusted EBITDA		(896)	(441)	(1,337)
Depreciation		(355)	(44)	(399)
Operating loss before exceptional costs		(1,251)	(485)	(1,736)
Exceptional costs		(45)	(671)	(716)
Operating loss		(1,296)	(1,156)	(2,452)
Net finance costs		(6)	(20)	(26)
Loss before tax		(1,302)	(1,176)	(2,478)
Segmental net assets3		8,703	249	8,952
Other segment information:
Taxation credit /(charge)	6		(1)	5
Capital expenditure - property, plant and equipment	189		14	203

 

 

1 CSC operations comprise the results of the Chesterfield Special Cylinders Limited trading subsidiary and its subsidiaries.

2 Central costs comprise costs related to the public listing of Chesterfield Special Cylinders Holdings plc.

3 Segmental net assets comprise the net assets of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries.

 

*The segmental analysis for the prior 26-week period has been restated (see Note 14) to reflect a re-classification of labour costs from cost of sales to administration expenses. There is no impact on the overall result for the financial period. This re-classification was already applied in the audited statutory accounts for the 52 weeks ended 27 September 2025. In addition, the profit on disposal of the discontinued operation has been included within the profit for the period from discontinued operations in line with the treatment applied in the audited statutory accounts for the 52 weeks ended 27 September 2025.

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss (continued)

 

 

For the 52-week period ended 27 September 2025 (audited) - continuing operations only

 

		CSC operations1	Central costs2	Total
		£'000	£'000	£'000
Revenue from external customers		16,583	-	16,583
Gross profit		6,386	-	6,386
Adjusted EBITDA		1,623	(772)	851
Depreciation		(724)	(84)	(808)
Operating profit / (loss) before exceptional costs		899	(856)	43
Exceptional costs		(68)	(722)	(790)
Operating profit / (loss)		831	(1,578)	(747)
Net finance costs		(28)	(34)	(62)
Profit / (loss) before tax		803	(1,612)	(809)
Segmental net assets3		10,666	150	10,816
Other segment information:
Taxation credit	36		156	192
Capital expenditure - property, plant and equipment	354		14	368

 

 

1 CSC operations comprise the results of the Chesterfield Special Cylinders Limited trading subsidiary and its subsidiaries.

2 Central costs comprise costs related to the public listing of Chesterfield Special Cylinders Holdings plc.

3 Segmental net assets comprise the net assets of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries.

 

 

 

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

5.  Exceptional costs

 

Items that are incurred outside the normal course of business and/or that are non-recurring are considered as exceptional costs and are disclosed separately on the face of the Condensed Consolidated Statement of Comprehensive Income.

 

An analysis of the amounts presented as exceptional costs is as follows:

 

	Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
	£'000	£'000	£'000
Costs in relation to the sale of PMC	-	(593)	(593)
Other corporate finance services	(13)	-	(48)
Reorganisation costs	-	(95)	(95)
Arrangement of term loan	-	(10)	(10)
Other plc costs	(31)	(18)	(44)
	(44)	(716)	(790)

 

 

6.  Taxation

 

	Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
	£'000	£'000	£'000
Current tax charge	-	-	-
Deferred taxation credit	22	5	192
Taxation credit to the income statement	22	5	192

 

The taxation credit in the period relates to a slight decrease in the net deferred tax liability of the Company. This is driven by a decrease in deferred tax liabilities in relation to accelerated tax depreciation.

 

 

7. Loss per ordinary share

 

The calculation of basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

 

The calculation of diluted loss per share is based on basic loss per share, adjusted to allow for the issue of shares on the assumed conversion of all dilutive share options.

 

Adjusted loss per share shows loss per share after adjusting for the impact of amortisation charges and exceptional items, and for the estimated tax impact, if any, of those costs. Adjusted loss per share is based on the loss as adjusted divided by the weighted average number of shares in issue.

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

7. Loss per ordinary share (continued)

 

For the 26-week period ended 28 March 2026 (unaudited)	£'000
Loss after tax	(1,095)
	Number of Shares ('000)
Weighted average number of shares - basic	38,667
Dilutive effect of share options - SAYE	42
Dilutive effect of share options - warrants	1,933
Weighted average number of shares - diluted	40,642
Loss per share from continuing operations - basic and diluted	(2.8)p
Total loss per share - basic and diluted	(2.8)p

 

The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

 

The Company adjusted loss per share is calculated as follows:

	£'000
Loss after tax	(1,095)
Exceptional costs (note 5)	44
Theoretical tax effect of above adjustments	(11)
Adjusted loss	(1,062)
Adjusted loss per share - continuing operations	(2.8)p
Total adjusted loss per share	(2.8)p
The tax effect is based on applying a 25% tax rate to the adjustment for exceptional costs.

 

For the 26-week period ended 29 March 2025 (unaudited)	£'000
Loss after tax	(2,210)
	Number of Shares ('000)
Weighted average number of shares - basic	38,667
Dilutive effect of share options - SAYE	92
Dilutive effect of share options - warrants	1,933
Weighted average number of shares - diluted	40,692

 

 

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

7. Loss per ordinary share (continued)

Loss per share from continuing operations - basic and diluted	(6.4)p
Loss per share from discontinued operations - basic and diluted	0.7p
Total loss per share - basic and diluted	(5.7)p

 

The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

 

The Company adjusted loss per share is calculated as follows:

 

	£'000
Loss after tax from continuing operations	(2,473)
Profit after tax from discontinued operations	263
Exceptional items: continuing operations (note 5)	716
Profit on disposal of PMC: discontinued operations	(388)
Theoretical tax effect of the above adjustments: continuing operations	(179)
Theoretical tax effect of the above adjustments: discontinued operations	97
Adjusted loss	(1,964)
Adjusted loss per share - continuing operations	(5.0)p
Adjusted loss per share - discontinued operations	(0.1)p
Total adjusted loss per share	(5.1)p
The tax effect is based on applying a 25% tax rate to the adjustment for the profit on disposal and exceptional costs.

 

For the 52 week period ended 27 September 2025 (audited)			£'000
Loss after tax	(354)

 

 

	Number of Shares ('000)
Weighted average number of shares - basic	38,667
Dilutive effect of share options - SAYE	63
Dilutive effect of share options - warrants	1,933
Weighted average number of shares - diluted	40,663
Loss per share from continuing operations - basic and diluted	(1.6)p
Earnings per share from discontinued operations - basic and diluted	0.7p
Total loss per share - basic and diluted	(0.9)p
The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

7. Loss per ordinary share (continued)

 

The Company adjusted loss per share is calculated as follows:

 

	£'000
Loss after tax from continuing operations	(617)
Profit after tax from discontinued operations	263
Exceptional items: continuing operations (note 5)	790
Profit on disposal of PMC: discontinued operations	(388)
Theoretical tax effect of the above adjustments: continuing operations	(198)
Theoretical tax effect of the above adjustments: discontinued operations	97
Adjusted loss	(53)
Adjusted loss per share - continuing operations	(0.0)p
Adjusted loss per share - discontinued operations	(0.1)p
Total adjusted loss per share	(0.1)p
The tax effect is based on applying a 25% tax rate to the adjustment for the profit on disposal and exceptional costs.

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

8. Reconciliation of operating profit to operating cashflow

 

	Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
	£'000	£'000	£'000
Adjusted Operating (loss) / profit from continuing operations	(1,038)	(1,736)	43
Adjustments for:
Depreciation of property, plant and equipment	405	399	808
Share option costs	-	4	7
Movement in translation reserve	1	(3)	2
Changes in working capital:
Decrease in inventories	42	321	402
Decrease / (increase) in trade and other receivables	1,489	1,077	(1,040)
(Decrease) / increase in trade and other payables	(1,581)	(417)	44
Operating cash flow from continuing operations	(682)	(355)	266

 

 

Adjusted Operating loss from discontinued operations	-	(125)	(125)
Adjustments for:
Depreciation of property, plant and equipment	-	13	13
Changes in working capital:
Decrease in inventories	-	11	11
Decrease in trade and other receivables	-	103	103
Decrease in trade and other payables	-	(100)	(100)
Operating cash flow from discontinued operations	-	(98)	(98)

 

Total operating cash flow	(682)	(453)	168

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

9.  Reconciliation of net debt

 

	Unaudited 28 March 2026	Unaudited 29 March 2025	Audited 27 September 2025
	£'000	£'000	£'000
Cash and cash equivalents	1,130	1,857	2,130
Net cash excluding lease liabilities	1,130	1,857	2,130
Lease liabilities	(482)	(435)	(362)
Net cash	648	1,422	1,768

10. Discontinued operation and disposal Group classified as held for sale

The sale of the Precision Machined Components (PMC) division to Raghu Vamsi Machine Tools Private Limited, a manufacturer of specialised precision engineered components based in India, completed on 8 October 2024. As such, PMC was part of the Group's discontinued operations in FY25 for ten days only.

The assets and liabilities of PMC were classified as a disposal group held for sale as at 28 September 2024. Revenue and expenses, gains and losses relating to the discontinuation of this division have been eliminated from profit or loss from the Group's continuing operations and are shown as a single line item in the consolidated statement of comprehensive income.

Operating loss of PMC in the period is summarised as follows:

		Unaudited 26 weeks ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September  2025
		£'000	£'000	£'000
Revenue		-	50	50
Cost of sales		-	(103)	(103)
Gross loss		-	(53)	(53)
Administration expenses		-	(71)	(71)
Operating loss before exceptional costs		-	(124)	(124)
Finance costs		-	(1)	(1)
Loss from discontinued operations before tax		-	(125)	(125)
Tax charge		-	-	-
Loss from discontinued operations after tax		-	(125)	(125)

 

There was no tax charge or credit attributed to the discontinued operation in the 52 weeks ended 27 September 2025. Its loss in the ten days between 28 September 2024 and completion of the sale is treated as unrealised.

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

10. Discontinued operation and disposal Group classified as held for sale (continued)

As at 28 March 2026, 29 March 2025 and 27 September 2025, there were no assets or liabilities in this disposal Group.

Cash flows generated by PMC for the reporting periods under review are as follows:

			Unaudited 26 weeks  ended 28 March 2026	Unaudited 26 weeks ended 29 March 2025	Audited 52 weeks ended 27 September 2025
			£'000	£'000	£'000
Operating cashflow			-	(98)	(98)
Exceptional costs			-	-	-
Finance costs paid			-	-	-
Income tax refunded			-	-	-
Net cash outflow from operating activities			-	(98)	(98)
Net cash outflow from investing activities			-	-	-
Net cash outflow from financing activities			-	-	-
Cash outflows from discontinued operations			-	(98)	(98)

 

Profit on disposal of discontinued operation (PMC)

The profit on disposal of the PMC division, recognised in the 52 weeks ended 27 September 2025, is as follows:

		£'000
Proceeds		4,392
Carrying value of net assets sold
Non-current assets: property, plant and equipment		2,989
Deferred tax assets		10
Current assets: inventories		1,276
Current assets: trade and other receivables		4,321
Current assets: cash and cash equivalents		484
Current liabilities: trade and other payables		(3,179)
Lease liabilities		(1,727)
Deferred tax liabilities		(170)
		4,004
Profit on disposal of the PMC division		388
Loss from discontinued operations after tax		(125)
Profit for period from discontinued operations		263

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

11.  Called up share capital and share premium

	Unaudited 28 March 2026		Audited 27 September 2025		Unaudited 28 March 2026		Audited 28 September 2025
	Shares No.		Shares No.		Share Capital £'000		Share Capital £'000
Allotted, issued and fully paid
Ordinary shares of 5p each	38,667,163		38,667,163		1,933		1,933
							Share Premium £'000
Share Premium account

 

At 28 March 2026, 27 September 2025 and 29 March 2025	1,699

During the 26-week periods to 28 March 2026 and 29 March 2025, the Company did not issue any new ordinary shares.

 

12.  Dividends

 

No final or interim dividend was paid for the 52-week period ended 27 September 2025.

 

No interim dividend is declared for the 26-week period ended 28 March 2026.

 

13.  Related party transactions

 

On 14 November 2023 a £1.5 million term loan facility was agreed with Rockwood Strategic plc and Peter Gyllenhammar AB, two of its major shareholders. The loan was fully repaid in October 2024 following the sale of PMC.

 

In conjunction with the provision of the term loan, Rockwood and Gyllenhammar were issued with 1,933,358 warrants in aggregate (representing 5% of the issued share capital) to subscribe for ordinary shares in the Company at a price of 32 pence per share, representing a 20% premium to the closing share price on 23 October 2023 (being the day prior to the announcement of the new facility). The warrants may be exercised at any time in the 5 years following drawdown of the new facility and continue to be exercisable notwithstanding that the facility was repaid in October 2024 before its final expiry.

 

Rockwood Strategic plc is a quoted unit trust whose funds are managed by Harwood Capital LLP, thereby placing it under the control of Richard Staveley, a Non-Executive Director of the Company. Rockwood Strategic plc is therefore considered to be a related party under "IAS24 - Related Party Disclosures".

 

Total fees paid to Rockwood Strategic plc in the period were £nil (2025: £nil), and total interest payments to Rockwood Strategic plc were £nil (2025: £4,000).

 

 

 

Notes to the Condensed Consolidated Interim Financial Statements (continued)

 

14. Prior period restatement

 

Reclassification of labour costs and profit on disposal of discontinued operation

 

During the 52-week period ended 27 September 2025, the Directors reviewed the treatment of labour costs in the financial statements of CSC. The Directors noted that since FY22, a proportion of labour cost has been charged to cost of sales which should more appropriately have been allocated to administrative expenses.

 

In addition, the profit on disposal of the discontinued operation has been included within the profit for the period from discontinued operations in line with the treatment applied in the audited 52 weeks ended 27 September 2025.

 

As a result, a prior period restatement has been made to the Condensed Consolidated Statement of Comprehensive Income. This affects the classification of labour costs and profit on disposal of discontinued operation only and there is no impact on the reported loss for the period. There is no impact on either the Condensed Consolidated Statement of Financial Position, the Condensed Consolidated Statement of Changes in Equity, or the Condensed Consolidated Cash Flows Statement.

 

These reclassifications were reflected in the audited statutory accounts for the 52 weeks ended 27 September 2025 but not reflected in the interim financial statements for the 26 weeks ended 29 March 2025.

 

For the 26 weeks ended 29 March 2025, the impact of the restatement was as follows:

 

	2025	2025	2025
	Presented	Adjustment	Restated
	£'000	£'000	£'000
Items in the Condensed Consolidated Statement of Comprehensive Income:
Cost of sales	(4,424)	474	(3,950)
Gross profit	959	474	1,433
Administration expenses	(2,695)	(474)	(3,169)
Profit on disposal of discontinued operation	388	(388)	-
Operating loss	(2,064)	(388)	(2,452)
Loss for the period from continuing operations	(2,085)	(388)	(2,473)
(Loss) / profit for the period from discontinued operations	(125)	388	263
Loss for the period attributable to the owners of the parent	(2,210)	-	(2,210)

 

Reclassification of contract balances and deferred income

 

During the 52-week period ended 27 September 2025, the directors reviewed the timing of future cashflows in relation to contract assets and liabilities and concluded that in some cases a proportion of the contract asset is likely to be recovered in greater than 12 months and a proportion of the contract liability is likely to be fulfilled in greater than 12 months. Accordingly, the Condensed Consolidated Statement of Financial Position as at 29 March 2025 has been restated for amounts expected to be recovered in greater than 12 months, resulting in a £291,000 reduction in current contract assets and a £291,000 increase in non-current contract assets and amounts expected to be fulfilled in greater than 12 months, resulting in a £718,000 reduction in current contract liabilities and a £718,000 increase in non-current contract liabilities.

 

In addition, the directors also reviewed future delivery timing on other deferred income balances and restated the 29 March 2025 comparatives for items within deferred income where the obligation would be fulfilled in greater than 12 months, resulting in a £281,000 decrease in current deferred income and a £281,000 increase in non-current deferred income.

 

These restatements have had nil impact on the result for the period and nil impact on net assets as at the balance sheet date. This reclassification was already applied in the audited statutory accounts as at 27 September 2025.

 

15. Events after the balance sheet date

 

On 6 May 2026, the Company announced that it had successfully renewed the lease on three acres of land adjacent to its existing freehold site in Sheffield, resulting in a material change to the value of property assets on the Company's balance sheet.

 

The previously remaining leasehold term at the end of September 2025 was less than twenty years and the total value of the Company's land and building assets at the end of September 2025 was £2.6 million.

 

The new 125-year lease provides long-term security for the Company's manufacturing operations and results in a revised carrying value of the combined property asset of £4.9 million, comprising the existing freehold of £2.6 million and a £2.3 million right-of-use asset for the new lease.  This carrying value is in line with the valuation of the Company's land and building assets of £4.9 million, as assessed by independent chartered surveyors, Knight Frank, in March 2026.

 

 

 

 

A copy of the Interim Report will be sent to shareholders shortly and will be available on the Company's website: www.csc-holdings.com.