Hampson shares plunge 84% after warning on assets

STRUGGLING aerospace group Hampson Industries has been forced to call a general meeting after the value of its assets fell to less than half of its share capital.

The company has warned shareholders there is now a serious risk their shares could be rendered worthless.

Its shares plunged 84% yesterday after issuing the notice although they began to recover in early trading.

Any publicly listed company finding itself in such a situation is required to send its shareholders notice of general meeting. The notice is issued pursuant to section 656 of the Companies Act 2006.

In a statement, the Black Country-based manufacturer said: “The directors have concluded that the company’s net assets are now less than half of its called-up share capital and, in such circumstances, the directors are required to convene a general meeting to consider whether any, and if so what, steps should be taken to deal with the situation.”
 
The company has been struggling to revive its share value since it announced in February it was putting itself up for sale. The company’s situation worsened in April when it issued a serious profit warning saying full year results were likely to be substantially below expectations.

Shareholders could potentially receive nothing from the sale of the business.

Nevertheless, the board said it did not think that special resolutions concerning the sale needed to be proposed for the general meeting, which will take place in London on June 27.

The statement concluded: “Shareholders should note however that, although the assessment of strategic options is ongoing, the board considers that, in light of the level and terms of indicative offers received to date pursuant to the formal sale process; the assessment of the group’s trading and operating liabilities (including the company’s contingent or future liabilities, such as those relating to the fulfilment of the company’s remaining obligations under the defined benefit pension scheme in the UK); and the level (and repayment terms) of the debt obligations owed by the group to its secured lenders, it is becoming clear there is a material risk there will be little or no remaining value for existing shareholders.”

It has said further announcements will be made as appropriate.
 
The group will publish its results for the year ended March 31, 2012 by the end of July 2012.