Hampson reports buoyant market

Announcing the company’s results for the year ended 31 March, chairman Chris Geoghegan, said the year had seen further strong growth in earnings. He went on: “Demand conditions in our core markets are buoyant and are expected to remain so for the foreseeable future. Against this background, we look forward to a bright future; another year of positive progress for Hampson in 2008/09, and increased long term value for our shareholders." Revenue for the year was 14% up at £157.9 million (2007: £138m) while pre-tax profit soared 48% to £9.2 million (£6.2m). Other highlights included what Hampson called the $253 million “transformational acquisition” of US firms Odyssey Industries, Inc. and Global Tooling Systems, Inc; new contract wins in aerospace and automotive; and the disposal of Lattimer Ltd and I.S. Parts International, Inc., exiting from the market for glass bottle manufacturing equipment to focus solely on markets “core to our growth strategy and in which we can secure competitive advantage”. Geoghegan said that with the acquisitions of Odyssey and GTS, over 50% of its revenue going forward will be derived directly or indirectly from the use of carbon composite materials in aerospace, in respect of which strong growth in demand was projected over the long term. Chief Executive Kim Ward (pictured) said it had been “a year of tremendous achievement” with record earnings, strong order books and acquisitions that left the company strategically very well positioned for the future. With its new acquisitions, Hampson said it would now hold global leadership positions in three sectors; two of them in itsr core aerospace markets: the design and manufacture of large, close tolerance tooling systems, critical in the production of the latest generation of lighter, fuel efficient, carbon composite-rich aircraft like the Boeing 787, the Airbus A350; and the manufacture of laminated and solid shims, essential components in aircraft production. Ward said the automotive turbocharger business was also a world leader in a market which continued to grow as a result of the need for improved fuel efficiency and reduced vehicle emissions. “Operational improvement is one of the two key focuses of our core business strategy and we continue to promote and drive lean initiatives across the Group,” Ward said. The continued roll-out of SAP business process management systems across the company’s larger sites would be a key component of its drive for increased efficiency, Ward went on. The company was also investing in new skills and had established a close working partnership with Henley Management College to provide a tailored programme of education and learning for its executive teams from the UK, North America and India. This initiative was a first for Hampson, and was designed to challenge Hampson’s people and to equip them with fresh insight and the means to develop real, sustainable competitive advantage for our businesses, worldwide. Looking ahead, Wild said the global aerospace markets remained buoyant. The order intake level for Boeing and Airbus from the start of the current calendar year to 31 March 2008 was a record for a first quarter in any year. Backlog positions for both airframe and aero engine manufacturers currently remained at very high levels and Hampson continued to expect production levels to rise in 2008/09 as a result. The continuing penetration of 'clean diesel' engines in light vehicles and the growing use of turbochargers with direct injection petrol engines in the global passenger car markets was expected to result in growing long term demand for Hampson’s products. (Photo: DIBYANGSHU SARKAR/AFP/Getty Images)