Umeco confirms sell-off talks continue

AEROSPACE group Umeco confirmed today it remains in talks regarding the possible sale of its Pattonair supply chain business.

The company, headquartered in Leamington, has declined to say which company is involved in the discussions but there is speculation it could be LDC, the private equity arm of Lloyds Banking Group.

Umeco said in an interim management statement that no agreement had been reached and any deal would first have to be approved by shareholders. A further announcement on the situation is expected in due course.

Elsewhere, the company said revenue in the four months to January 31, 2011 reached £152.8m, 15.3% higher than the comparable period last year.

The firm’s order book at the end of January was £260.8m, up on the £242.1m reported at the end of September.

Umeco said this reflected increased activity in all three of its business streams.

It said the civil aerospace market had continued to recover both in new build and aftermarket.

However, it warned revenue from its involvement in the Boeing 787 Dreamliner project was likely to be lower than expected due to further delays in the programme. The first planes are now expected to be delivered in the third quarter of 2011.

Nevertheless, Umeco said full revenue for the operation was likely to be offset by higher activity levels on other aircraft programmes.

Away from aerospace, it said the wind energy market continued to grow. The Chinese market was developing quickly but elsewhere the recovery was slower.

Cost factors continue to play a part and it said raw material prices within its composites division had continued to increase and efforts were being made to pass these through to customers, to maintain margin levels.

In its Structural Materials operation it said it was pleased with the progress made in relation to the Airbus A350XWB and the Light Protected Patrol Vehicle (LPPV).

In outlook, the firm said: “We are encouraged by the improving order book and the group’s trading performance for the year to March 31, 2011 remains consistent with the board’s expectations.”

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