2026 Interim Results

About this update from Chesterfield Special Cylinders Holdings Plc

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 profit 1 2.1 1.4 6.4 Adjusted EBITDA 2 (0.6) (1.3) 0.8 Adjusted operating (loss)/profit 3 (1.0) (1.7) 0.0 Loss before tax (1.1) (2.5) (0.8) Cash balance 1.1 1.9 2.1 Net cash 4 0.6 1.4 1.8 Pence Pence Pence Basic loss per share (2.8) (6.4) (1.6) Adjusted loss per share 5 (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 operations 1 Central costs 2 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 operations 1 Restated* Central costs 2   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 assets 3 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 operations 1 Central costs 2 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 assets 3 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 los s 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 .   

View stock analysis, news, and events for Chesterfield Special Cylinders Holdings Plc