Hampson Industries takes £4.1m hit for restructure

Hampson Industries, the aerospace and engineering group, reported a loss of £4.1m for the year to 31 March due to exceptional items resulting from the final stages of reorganisation. The loss had been expected by the company and City analysts. Before exceptionals, the group made a pre-tax profit of £9.5m on turnover of £85m. Chief […]

Hampson Industries, the aerospace and engineering group, reported a loss of £4.1m for the year to 31 March due to exceptional items resulting from the final stages of reorganisation. The loss had been expected by the company and City analysts. Before exceptionals, the group made a pre-tax profit of £9.5m on turnover of £85m.

Chief executive Chris Davies announced his retirement to take up a number of non-executive directorships. Since 1996 he has steered the group through its transformation from a mini-conglomerate to a focused group of 10 aerospace and four precision engineering companies.

Davies will be replaced by Kim Ward, currently managing director of TI Group subsidiary Dowty Aerospace’s propellers division and the European division of Dowty Turbine Engine Components.

Ward expressed the hope of gaining a stronger foothold in the US, where strategic partnerships of the type the group has cultivated with Rolls-Royce are less common. He also believed the group would be in a strong position to benefit from internet auctions, by offering `a very competitive total package’.

Ward joins Hampson at the start of August. He has 20 years’ experience with TI Group, including 19 in aerospace, and has contacts with all the major aerospace manufacturers.

He said: `There are a lot of opportunities in the US and European aerospace industries.’

Disposal of the group’s metals division; the sale of Hi-ton International; the recent merger of West Yorkshire Engineers with Lattimer Engineering and the closure of WYE’s factory resulted in costs of £11.7m.

Hampson-owned component supplier Robson Precision has moved to a new £4.5m factory in Birmingham, securing its future as a strategic supplier to Rolls-Royce. However, its sales saw a big dip due to a pause in orders because Rolls-Royce had over-ordered certain components.

Davies said this was a temporary blip, but that growth this year would be less than expected. `We will then see an increase in orders due to our status as a selected supplier,’ he said.

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