London-based Hunting Group Plc has turned in mid-term pre-tax profits of UKP20m, up 12% on the same period for 1989, on turnover up 6% at UKP357m. The defence division, accounting for 50% of the group’s profits, attributes its increase to the JP233 airfield attack system – Hunting’s principal contract for this, with the British government, is due for completion by the end of the year. The division has, however, lost out on a risk-reduction contract from the Ministry of Defence for SWAARM – a next generation of air-delivered, anti-armour weapon, but the company says full provision has been made to cover costs induced by the cancellation of the project. Hunting Engineering is continuing to export LAW80, an anti-armour infantry weapon, and also its air-delivered weapons. The Irvin Aerospace subsidiaries are reported to be operating profitably, with good order books. Hunting has finalised a deal with the UK Ministry of Defence to provide management services to the Atomic Weapons Establishment – work began on October 1. These services are being provided by Hunting-BRAE Ltd in which the group has a 54% interest. The aviation division has seen good results from its engine subsidiary, and says its fitting out of the British Aerospace Jetstream 31 and Saab 340 is going to plan, with strong order books. The division has also shaken hands on a risk sharing agreement with British Aerospace for fit-out work on the Jetstream 41 – Hunting reckons this could be worth UKP100m in turnover over the next decade. Gibson Petroleum is reported to have given the group’s oil and technology division a welcome performance boost, and the company needless to say looks set to benefit from the increase in oil prices as a result of the Gulf crisis. The division has increased its investment in the liquified petrol market with the acquisition of Canwest Propane in May. Hunting Specialised Products is finding the do-it-yourself and automotive markets difficult due to the squeeze in consumer spending, but sales are reported not to have declined compared to the same period in 1989. Hunting’s new policy of disposing of companies that don’t fit in with its business strategy (CI No 1,411) has recently involved the sale of Lynwood Scientific – a management buy-out – and the wide area networking equipment firm, Camtech – sold to Ericcson Ltd. Richard Hunting, Hunting’s deputy chairman, says the group is currently negotiating the sale of several other activities – he wouldn’t disclose which – to take place over the next six months. Prices may have to be lowered, though, for sales to be made in the present economic environment, especially for property assets – Hunting has re-assessed its provisions for losses and costs on the projected disposals and charged an additional UKP10.4m to the figure given in the 1989 accounts.
