Engineering group Hampson Industries has seen profits more than halve amid weak demand.
Brierley Hill-based Hampson (HAMP) has seen adjusted pre-tax profits fall to £400,000 in the six months to September 30, compared to £1 million in the first half of last year.
The company made a pre-tax loss of £31 million on a statutory basis, before taking into account restructuring and rationalisation charges, impairment charges and the disposal or closure of businesses.
Revenue fell by more than 13 per cent over the period, to £76.7 million but chief executive Norman Jordan said the group was well-placed.
He said: “Hampson is positioned to benefit from both the anticipated strong recovery in the civil aerospace cycle and the trend to greater use of composite materials in aircraft.
“In the near term the group has overall order cover or pipeline opportunities adequate to deliver, subject as always to customer scheduling, full year performance consistent with the first half and we continue to focus on further operational and gross margin improvements.”
In a trading statement, the group revealed that net debt had fallen slightly, to £88.7 million.
The group said its results had been impacted by weak performance at its Odyssey and GTS businesses.
However, it enjoyed a strengthened order book from continuing businesses in the second quarter, from £107 million at March 31, 2011, to £119 million at September 30, 2011, an 11 per cent growth.
In October the group completed the disposal of its non-core Shims businesses, which provide components to the global aerospace markets, for £51.5 million.