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Hampson Industries PLC

Disposal of Hampson Aerospace Machining Limited

Hampson Industries PLC ('Hampson' or 'the Group'), the international aerospace and precision engineering group, announces the disposal of its subsidiary, Hampson Aerospace Machining Limited ('HAML' or 'the Company') to Darwin Private Equity LLP, for a cash consideration of £23.7 million.

The principal activities of HAML, which operates from three facilities in the United Kingdom, comprise the precision machining of metallic components for gas turbine engines and similar applications. HAML, which employs 300 people, previously formed part of the Group's Aerospace Components & Structures division.

The consideration is payable in cash on closing, which is expected today, and the net available proceeds after expenses of the transaction and retentions will be used to repay borrowings.  

For the year ended 31 March 2009, HAML generated revenue of £28.3 million, profit before taxation of £2.3 million and had gross assets (excluding investments in dormant subsidiaries and amounts owed by Group undertakings) of £16.4 million. For the four month period to 31 July 2009, HAML generated revenue of £8.3 million and trading profit of £1.1 million. The disposal is expected to lead to some dilution in current year earnings per share in light of current prevailing low interest rates.

Hampson Chief Executive, Kim Ward, commented as follows:

'The disposal of HAML marks an important step in streamlining the Group's portfolio as we concentrate our efforts on sectors where we can take advantage of higher long term growth rates and generate tangible synergies. 

'Exiting our non-core, UK machining operations will enable us to focus on developing our advanced composites businesses in components and tooling systems and strengthen our ability to capitalise on the significant opportunities arising from the introduction of major new programmes and technologies in aerospace manufacturing.' 

Hampson will issue its interim management statement on Wednesday 19 August 2009.

Ends.

Further information:

Kim Ward, Chief Executive                                            +44 (0)1384 472941

Howard Kimberley, Finance Director                               +44 (0)1384 472946

Marylene Guernier/Ed Orlebar, M:Communications          +44 (0)20 7153 1269/1523

About Hampson:

The Group's operations are structured into three business segments, serving primarily the global commercial and military aerospace and specialist engineering markets from manufacturing facilities in the UK, North America and India.

Approximately 95% of the Group's sales are derived from its aerospace activities, the balance from the market for automotive turbocharger components.  Hampson are world leaders in the design and manufacture of close tolerance tooling and assembly systems for composite and metallic aero structures. The Group employs approximately 1,600 people worldwide. 

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

Steen Associates Limited acted as exclusive financial advisor to Hampson in relation to the transaction. For more information on Steen Associates:  www.steenassociates.com