28 December 2011
Hampson Industries PLC
Settlement of Dispute
Hampson Industries PLC ("Hampson" or the "Company"), the specialist tooling and composite product solutions provider for the aerospace industry, announces that the legal proceedings issued against Randal Bellestri, Kimberley Bellestri and the Randal Bellestri Revocable Living Trust ("the Bellestris") have been resolved to the satisfaction of Hampson.
This was achieved through an out-of-court settlement, whereby the Bellestris have agreed to pay to certain Hampson subsidiaries an immediate cash amount of $2.6 million, apply future rent reductions on properties leased by the Bellestris to Hampson and to withdraw all outstanding counterclaims against the Company.
In addition, settlement in relation to the above proceedings has also been agreed with Hampson's US and UK Fidelity Insurers.
Separately, following the disposal of its shims businesses earlier in the year and the process of refinancing the Company's lending arrangements, a decision has been made to suspend certain IT (information technology) projects and write off some related capitalized costs. Additionally, with the advancing review of strategic options of some of its businesses, a decision has been made to write off certain intangible assets and provide for some associated inventory balances.
The benefit from the cash settlement is expected to be broadly equal to the write offs and provisions outlined above and therefore the settlement is not expected to have a material effect on the Board's current year profit expectations. However, the Company's net debt is expected to be reduced by the amount of the settlement.
Ends.
For further information:
Norm Jordan Chief Executive 001 972 893 2190
Ram Swamy Finance Director 0044 138 447 2946
Ann-marie Wilkinson, M: Communications 0044 207 920 2300
Notes to editors:
Hampson Industries' operations are structured into two business segments, serving the global commercial and military aerospace markets from manufacturing facilities in the UK, North America and India.
Hampson is a world leader in the design and manufacture of close tolerance tooling and assembly systems for large composite and metallic aero structures.
Hampson is listed on the main market of the London Stock Exchange (Symbol:HAMP). For more information on Hampson: www.hampsongroup.com
