With the outbreak of the Second World War, the available resources of the gun trade had been mobilised to recondition a reserve of Pattern 1914 Enfield rifles, and in 1940 the Parker-Hale Arms Company was founded.

A wide range of additional war contract work followed, principally with the manufacture of .30-06 Springfield and .303 British drill cartridges in large quantities.

[1] After the close of hostilities, with a fall in production contracts and no permanent premises, the company had little choice but to invest in a small factory unit, erected under the Government's emergency programme to re-house bombed-out manufacturers.

Meanwhile, the Parker-Hale Arms Company was transferred to the Birmingham Proof House, where it continued with the reconditioning of .22 LR weapons for junior training organisations.

Lacking the investment necessary to enable the company to compete effectively in newly emerging markets, Parker-Hale was eventually sold to the Midlands engineering group, Modular Industries Ltd.