Pre Close Period Statement

Senior PLC
17 December 2001

17 December 2001


                        PRE CLOSE PERIOD STATEMENT


Prospects for the Group remain consistent with Senior's press release of 
8 October 2001.


Specifically, 2001 underlying earnings per share (on continuing operations
before goodwill amortisation and exceptional costs) and year-end net debt
levels are anticipated to be in line with the Board's expectations. The Group
will comfortably meet all of its borrowing covenants at the year-end.


In Aerospace, our commercial customers are, as anticipated, typically reducing
their production levels by between 25% and 35%. Internally, a number of new
programmes are coming into production and military programmes, 20% of the
Division's turnover, are showing signs of increased activity. The significant
decline in commercial programmes has, however, necessitated a reduction in the
cost base with headcount reductions totalling 8% of the Division (182
employees) implemented during October and November.


In Automotive, European production and sales levels continue at healthy
levels. In the USA, where sales of finished vehicles had been in decline
throughout the year, zero rate finance incentives introduced by the major
manufacturers during October provided a significant, but perhaps temporary,
boost. The recent increase in sales of finished vehicles is, however, only now
positively impacting production levels as the manufacturers initially depleted
finished vehicle inventory.


In Specialised Industrial, the USA markets continue at a low level with the
exception of the power generation market, whilst in Europe previously
satisfactory activity levels are showing signs of slowing down. As an
efficiency measure, the Group recently reorganised its Chicago based
Industrial and Automotive businesses under a single management team. The
businesses already operated from the same facility.


As announced on 23 October, the Group disposed of its Industrial operations in
Australia and New Zealand. Following this disposal, the small 4 person sales
office in Singapore is to be closed.


In total this year, the Group has reduced employee numbers on continuing
operations by 420 (7% of the workforce). The total one-off costs incurred in
relation to these reductions and the associated re-organisations are likely to
be around £3.0m, slightly higher than the £2.5m indicated on 8 October.


As a result of the changing economic climate, the Board undertook a review of
the carrying value of the Group's goodwill and fixed assets. With the
exception of a £4m provision against the goodwill arising on the acquisition
of its Brazilian operations, no provisions for impairment were required.


Whilst the markets in which the Group operates continue to be uncertain, the
Group is taking all the actions necessary to ensure that the cost base remains
aligned with levels of demand. The debt level continues to fall and actions
are in place for it to reduce further next year.


Senior is increasingly well placed to benefit from the upturn in its markets
when this occurs.




Enquiries:


Senior
Graham Menzies          Group Chief Executive              01923 714702
Mark Rollins            Group Finance Director             01923 714738


Finsbury
James Murgatroyd                                           020 7251 3801
Charlotte Festing



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Note to Editors:

Senior is an international manufacturing group with annual sales of over £450m
and with operations in 16 countries.


Senior designs, manufactures and markets high technology components and
systems for the principal original equipment producers in the worldwide
aerospace, automotive and specialised industrial markets.


Senior's policy is to enhance shareholder value by improving operating
performance and customer service levels and by developing its market position
in the aerospace and automotive industries.