Cautious response

Hampson Industries has released a buoyant interim management statement for the period since 30 September 2008, but urged caution in anticipation of difficult times ahead for certain sections of the business.

The company, which has its headquarters in the West Midlands, primarily provides engineering services to the aerospace industry.

Hampson said that its car manufacturing arm had weakened, although it reported strong results throughout its core business areas.

The group’s two recent acquisitions, Odyssey Industries and Global Tooling Systems, have traded strongly with both order and revenue growth reported in excess of pre-acquisition expectations.

Hampson's tooling business, Coast Composites, has been boosted by contract deals with manufacturers such as Airbus. This has led the division to increase its orders by 100 per cent over the nine months to the end of December compared to the same period a year ago.

The company said that based on current levels of enquiry, it is confident of securing further large tooling contracts in the coming months and is considering opportunities to expand its facilities.

Despite strong fourth-quarter results, the group predicts more modest full-year results with difficult market conditions expected to further bring down sales in its automotive component division.

The group’s Automotive Turbocharger business, which represents eight per cent of the company's total revenue, has seen its revenues drop significantly. Hampson has already cut staff and reduced working hours, however, it indicated that it may have to take further restructuring action once the extent of the losses are made clear.