Pre-Close Trading Update

RNS Number : 7803B

Senior PLC

21 June 2016

 

Pre-Close Trading Update

Senior plc ("Senior" or "the Group"), an international manufacturer of high technology components and systems, principally for the worldwide aerospace, defence, land vehicle and energy markets, announces a trading update before entering a close period on 1 July 2016.

In the first half, the Group's activity in the Aerospace Division is anticipated to increase in line with expectations, resulting from additional content on new aircraft.  As expected, margins in the Aerospace Division will be lower in H1 2016 as the ramp-up of new production programmes continues.

In the Flexonics Division, Q2 activity continues to reflect the challenging market conditions in truck and off-highway and oil and gas markets.  While the Division is continuing to focus on cost management and efficiency initiatives, the reduction in volumes and change in mix compared to 2015 means that H1 margins are likely to be lower than expected, in the range of 8% - 9%.

Outlook

Consistent with the position set out in the update of 21 April 2016, revenue in the Aerospace Division is expected to grow in 2016 with a stronger profit in the second half, driven by increasing revenues and operational improvements.

In the Flexonics Division, following the most recent market and customer data for the heavy truck and oil and gas sectors, it is anticipated that revenues in the second half of 2016 will be lower than the first half.  We continue to focus on cost initiatives and these are anticipated to provide some improvement in Flexonics profits in the second half.

The results for the six-month period to 30 June 2016 will be announced on Monday 1 August 2016.

Conference Call

There will be a call for investors and analysts at 8.00 a.m. today.  The dial-in details are as follows:

International access number: [phone]

UK toll free number: 0808 109 0700

Password: Senior

Further information

Derek Harding	Group Finance Director, Senior plc	[phone]
Philip Walters	Finsbury	[phone]

About Senior

Senior is an international manufacturing group with operations in 14 countries.  It is listed on the main market of the London Stock Exchange (symbol SNR).  Senior designs, manufactures and markets high technology components and systems for the principal original equipment producers in the worldwide aerospace, defence, land vehicle and energy markets.  Further information on Senior plc may be found at: www.seniorplc.com

Cautionary Statement

This announcement contains certain forward-looking statements.  Such statements are made by the Directors in good faith, based on the information available to them at the time of the announcement, and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.

 

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