2002/3 Annual Results & Turnaround Progress

Happy New Year All! - HAMP's discount to main sector over the 5 years to 31/12/03 is now down to 38%. That sector (A&D) is down 30% v the Allshare and HAMP is down 57% v the Allshare since 31/12/98. In Q4.2003 the (now 38%) discount to sector narrowed from earlier levels for 2 main reasons, 1. HAMP's price-moving Eclipse announcement, and 2. the A&D sector generally retreating a bit after its (Q2 and Q3 2003) advance. In my view, HAMP's additional emerging strength in its strategically important Automotive and Precision divisions has not yet been price-reflected, despite these having been the main P&L contributors while the A&D sector has been cyclically, geo-politically and (recently) SARS depressed. It is interesting to ponder on what HAMP will be capable of as a growing FTSE small-cap when all its main divisions get up to speed, now that they have become right-sized, tooled-up, quality-led and major client-focused. The latest broker forecasts for 2004 and 2005 don't look so demanding when viewed with a closer knowledge of what the group is actually doing. I guess the City is still reluctant to factor in A&D recovery prematurely.