Major losses for Hampson Industries
International aerospace group Hampson Industries has said that it will consider “potential asset disposals” to maximise cash generation after announcing a fall in pre-tax profit of 64 per cent. The full extent of the Brierley Hill-based company's losses were revealed through its six-monthly interim results this morning.
Operating profit also dropped 78 per cent for the six months to 30 September 2010 from the comparable 2009 period to £4.1m.
Despite an increase in revenue of 4 per cent to £92.8m, trading profit was halved to £7.8m compared with results from the previous year.
Hampson’s chief executive, Norman Jordan, said: "Since joining Hampson, I have been impressed with the sheer depth of technology and the breadth of capability of our businesses as well as the professionalism and commitment of our people.
"While there are many steps that we can and will be taking to improve our performance, the group's core strategy is soundly-based and well-focused with undoubted potential for growth."
Chairman Chris Geoghegan said: "Although the macro environment for our business is improving, the board considers it appropriate at this stage to remain cautious with respect to the rate of margin improvement.
"In the short term, considerable focus continues to be placed on operational improvement initiatives as well as other options to strengthen the business and maximise cash generation, including potential asset disposals. The board anticipates that the performance improvement initiatives being taken will contribute to improved results in the second half."
