Insider Media Limited

Aerospace group Hampson Industries has put itself on the market and has appointed DC Advisory Partners and Sagent Advisors Inc to conduct the formal sale process.

The Brierley Hill manufacturer will continue to focus on refinancing its bank facilities, it told the Stock Exchange.

"The board of Hampson also believes it to be prudent to review actively all financing and strategic options, including a sale of the group and is therefore announcing the commencement of a formal sale process," the company said.

Revenue for the group from 1 October to 5 February was £55.6m. Hampson's order books were £120.7m, compared with £119m at 30 September.

Sales for the period in the company's tooling division were £39.8m, with an order book of £57.3m. The tooling division is made up of Coast Composites, Global Tooling Systems and Odyssey Industries.

Management actions at Odyssey have resulted in trading at or above breakeven in each of the past three months, it said.

Weak performances in the division led to a pre-tax loss of £31m over the six months to 30 September, compared with a loss of £1.9m in the comparable 2010 period. Revenue also sunk from £83.3m to £76.7m.

Hampson said at the time it was also reviewing the future of its Indian subsidiary after further losses were unveiled.

"The group has been exploring strategic options for its BHW and India operations," it said in today's (14 February) interim statement.

"Whilst discussions remain at a relatively early stage, indicative offers have been received for the businesses."

Composites Horizons, Texstars, BHW and the group's Indian operations make up the aerostructures and composites division.

Revenue in this segment for the period was £15.8m as a result of "continued strong activity" at Composites Horizons and improved volumes at Texstars. The order book was £63.4m.

In October, Hampson completed the disposal of the Shims businesses for £51.5m.

The group then settled a legal dispute in December with an immediate cash benefit of about £1.6m. Following these events the net debt at 5 February 2012 was £54.9m.

Hampson is now considered to be in an "offer period" as defined in the Takeover Code.