Hampson Industries PLC Trading Update (8239G)

TIDMHAMP

RNS Number : 8239G

Hampson Industries PLC

03 July 2012

3 July 2012

Hampson Industries PLC

("Hampson" or "the Company", and together with its subsidiaries, "the Group")

Trading update

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. Since then, the Company has been preparing a revised business plan as part of that strategic review. Shareholders should be aware that this plan will reflect worsening trading conditions for the Group's tooling activities, which therefore increases that material risk.

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 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 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 Group's overall results for the current year are expected to be materially impacted by these trading issues.

As noted in the announcement dated 27 June 2012, the Board of Hampson continues to review and assess the strategic options available to the Group and the formal sale process continues. The Group's results for the year ended 31 March 2012 are expected to be announced on 31 July 2012.

The Group is in discussions with its lenders who continue to be supportive whilst the Group explores its strategic options.

Further announcements will be made as appropriate.

Enquiries:

M:Communications

   Ann-marie Wilkinson / Maria Souvorov                               [phone] 

Notes to editors:

Hampson is listed on the main market of the London Stock Exchange (Symbol: HAMP). For more information on Hampson: www.hampsongroup.com

A copy of this announcement will be available at www.hampsongroup.com

This information is provided by RNS

The company news service from the London Stock Exchange

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