Hampson Industries said first-half profits were disappointing after the order book at its aerospace division was hit by a supplier shake-up at Rolls-Royce.
The group saw pre-tax profits fall by 41% to £2.6m in the six months to September, with a strong performance by its precision engineering business unable to compensate for the drop in machining parts for aeroengines.
Chairman Ray Way warned the full year’s figures will be below expectations, despite a predicted upturn in the second half.Way insisted the rationalisation programme by Rolls-Royce, its main customer, would leave Hampson in a stronger position in the long term, despite recent disruption to orders.
The engineering group has made price concessions in return for significantly increased volumes of business, which are now beginning to feed through. Way said Hampson has also developed strength-in-depth in its ability to supply machined components.
The company now believes it will benefit from the growing trend in the aerospace industry to contract out larger volumes of work to companies with an all-round industrial capability.