Shares suspended and sale scrapped as Hampson continues nosedive

SHARES in struggling aerospace group Hampson Industries were suspended today as the company announced it was not able to publish its annual accounts due to concerns over the financing and strategic options available to the group.

The Black Country-based group has also shelved plans to progress the sale of the business because no suitable offers for the group have been received.

Hampson has also said it is now in talks with an unnamed third party for the potential disposal of its troublesome US operations.

However, it has repeated its warning to shareholders that there is unlikely to be any value remaining in their holdings.

In a statement to the London Stock Exchange today, AIM-listed Hampson said the company had been due to publish its Report and Accounts for the year ended March 31, 2012.

“However, due to the status and nature of the remaining financing and strategic options available to the group and following detailed discussions with the group’s auditors, the board has concluded that the company will not be in a position to publish those accounts within that required timeframe.  Accordingly, the company has requested an immediate suspension of trading in its shares,” it said.

Earlier this year the firm said it was in difficulties due to problems with its US operations and it would be conducting a strategic review of its operations with a view to the formal sale of the business.

The company warned shareholders there was a serious risk their shares could be rendered worthless. The announcement saw the firm’s share price plummet by more than 84%.

The company said today that talks over the possible sale of the business had failed to turn up a suitable buyer.

“Discussions have been held with a number of potential acquirers to solicit an offer for the shares in the company but it has not been possible to progress matters to a position where the board is satisfied as to the deliverability of a transaction involving an offer for the shares in the company,” added the statement.

“The board has therefore today terminated the formal sale process. As a consequence, the company hereby confirms that it is no longer in an offer period.”

It continued: “The group continues actively to review its remaining financing and strategic options with the objective of achieving a disposal of its US and non-US operations with the support of its lenders.  In that context, the group is entering into a period of exclusivity with a third party in relation to a potential disposal of the group’s US operations.  

“In addition, the group has entered into covenant waivers in respect of its finance facilities (which are anticipated to provide adequate working capital headroom for the group’s operations) until September 28, 2012, to provide time to implement either the disposals or a financial restructuring of the group’s operations.

“The board does not expect the conclusion of any of the options currently open to the group to result in there being any value remaining for existing shareholders.”

It has promised to update shareholders should circumstances change.