Hampson Industries Plc (HAMP.L) said that trading in its tooling businesses is challenging.
While the Group's tooling businesses remain profitable, the relatively low level of new programme awards, on which this division mainly depends, in conjunction with the perceived uncertainty associated with the Group, means that trading in that division is challenging, the company said.
In the announcement dated 6 June 2012, it was stated that, although the assessment of strategic options was ongoing, the Board considered that it was becoming clear that there was a material risk that there will be little or no remaining value for existing shareholders. The company said that since then, the Company has been preparing a revised business plan as part of that strategic review.
The company said that the division continues to make deliveries against the Group's largest tooling order, on which, as previously announced, issues were identified during the testing and customer approval process. Hampson noted that it is constructively engaged with the customer at senior management level to resolve the issues.
Furthermore, the proposed sale of the BHW unit is no longer being pursued, owing to significant production rescheduling by a key customer and the decision by another customer to retain in house activities which it had planned to outsource to BHW. Operational changes are being identified at BHW to reduce the impact of BHW's performance on the Group, the company said.
The Group's overall results for the current year are expected to be materially impacted by these trading issues.
The Group said it is in discussions with its lenders who continue to be supportive whilst the Group explores its strategic options.
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by RTT Staff Writer
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