THE events of September 11 helped push East Lancashire aerospace employer L Gardner into the red.

The firm, which employs more than 500 at its Cleveland Guest and Pendle Aeroform sites in East Lancashire, today released figures for the six months to February 28.

They showed sales fell to £44.3million from £51.6million in the same period last year with operating losses at £2.5million against a profit of £8.4millon.

Chairman Simon Frost said the aerospace industry was now slowly recovering from the impact of the tragic events of September 11. "The group has experienced a significant reduction in demand from most customers as they reduced their aircraft and engine production programmes.

"However, the position appears to be now stabilising albeit at lower order volumes than were our expectations pre-September 11. General industry expectations are that there will be no significant upturn before the end of 2003."

But he said major changes throughout the business would pay dividends. He added: "Significant restructuring and operational improvement activities have been undertaken to reduce costs within the group.

"The benefit of these actions will be seen in an improved performance in the second half of this year. "

L Gardner's chief executive is businessman Steve Hollis, who helped rescue Cleveland Guest, who won a Lancashire Evening Telegraph business person of the year title for his success in saving the Colne company.

Steve led a buyout of Cleveland Guest after it went into receivership. The Colne site, which employs more than 135 people, supplies precision machined components to major aerospace firms.

It was bought by Eccles-based L Gardner in 1998.