INTERNATIONAL aerospace group Hampson Industries has posted significant losses in H1 results despite a small upturn in revenues.
In its half-year report for the six months ending September 30, 2010, the Brierley Hill-based firm reports a 50% drop in trading profit to £7.8m, a 78% drop in operating profit to £4.1m and a 91% fall in pre-tax profits on a statutory basis to £1.3m.
The report says that trading profit, profit before tax and earnings per share all reflect continuing operations before restructuring and rationalisation charges, impairment charges and disposal or closure of businesses.
It adds: “The directors believe that exclusion of these items allows trends in the performance of the group’s continuing business to be more easily identified and understood.”
Year-on-year revenues for the six-month period are up 4% to £96.1m while its net debt has also dropped significantly from £140.7m to £89m.
Chief Executive Norman Jordan, who joined the firm in September, said: “Since joining Hampson, I have been impressed with the sheer depth of technology and the breadth of capability of our businesses as well as the professionalism and commitment of our people.
“While there are many steps that we can and will be taking to improve our performance, the group’s core strategy is soundly-based and well-focussed with undoubted potential for growth.”
Chairman Chris Geoghegan added: “Although the macro environment for our business is improving, the board considers it appropriate at this stage to remain cautious with respect to the rate of margin improvement.
“In the short term, considerable focus continues to be placed on operational improvement initiatives as well as other options to strengthen the business and maximise cash generation, including potential asset disposals.”
