Farming woes blow for Shropshire industrial giant GKN

While overall group sales edged higher by one per cent to £3.85 billion, in the Land Systems division, which forms the bulk of the company's operation in Shropshire, sales fell by eight per cent to £371 million in the first six months of 2015.

Pre-tax profits in the division more than halved to £15 million, compared with a group-wide four per cent increase to £307 million.

The division was hit by the continuing woes of the farming market, with sales of agricultural machinery continuing to face difficulties at home and abroad, although chief executive Nigel Stein said restructuring in the division left it well-placed to capitalise on an upturn in conditions.

"Land Systems had a tough time," Mr Stein told investors at a presentation in London. "Agricultural market conditions, particularly in the USA, took sales down eight per cent, which was much as we expected.

"Profits were also lower due to the market, but also included £5 million of a total £8 million restructuring cost this year.

"While we are not expecting anything in the short term, we feel well positioned to capitalise on any recovery in the market."

There is some better news on the horizon for the 800 staff employed at the Telford facility in Hadley Park.

The company said it saw its sales improve slightly towards the end of the period, and that the weaker comparable period in the second half of 2014 should see the pace of decline slow for the rest of the year.

Mr Stein added: "This was another solid performance, particularly in our automotive businesses.

"We have continued to perform well against our key markets and report good results in spite of some end market weakness, particularly in GKN Land Systems. We expect these trends to continue in the second half and for 2015 to be another year of growth."

The Telford-based division makes parts such as brakes and gearboxes for cars and heavy machinery including tractors.

The Hadley Park plant is also home to GKN Hybrid Power, the division it acquired from the Williams F1 team in 2013, which is aimed at providing energy saving technology for vehicles such as buses.

And there was better news for Telford in that division, with other businesses – under which Hybrid Power is classed – seeing sales rise by £1 million to £23 million during the period.