Hampson Industries, the international aerospace and engineering group, has announced strong financial results for the six-month period ending 30 September 2008.
Hampson’s profit before tax was up 127 per cent to £16.1m from £7.1m, reflecting the operations of the group before restructuring and changes in value of financial instruments.
Operating profit for the period increased by 110 per cent to £17.4m and profit before tax jumped 149 per cent to £12.5m. Revenue rose 45 per cent to £110.51m from £76.34m in the same period last year.
Trading profit was up 99 per cent to £20m, exceeding the board’s expectations. Net financing costs came to £4.9m in the period, compared with £3.2m in the first half of the previous year.
According to the company, the increase in revenue was assisted by the acquisition of Odyssey Industries and Global Tooling Systems, which operated ahead of expectations.
A strategic move into tooling positions has limited the group’s exposure to fluctuations in commercial aircraft build rates. Tooling systems for composite aero structures now comprises 45 per cent of the company’s revenue and orders are fully booked to year-end March 2009.
Revenue for the Aerospace Composites and Transparencies division increased to £53.1m compared with £23.1m in the same period last year. Aerospace Components and Structures’ sales were up to £46.4m and revenues for the Automotive Turbocharger division climbed six per cent.
Hampson expects that its prime contractors, including Boeing and Airbus, will reduce their production rates in the light of the economic slowdown. However the group believes that the strength of its current orders will provide some resilience to changes in activity.
The impact of reduced volumes in the automotive markets is expected to be offset by increased growth in new programmes for light vehicles and passenger cars. The group also believes that cost reductions and operating efficiencies will provide improved results for the second half of the year.