Disposal

RNS Number : 7499O

Senior PLC

16 October 2012

 



Hargreaves disposal

Senior plc ("Senior") is pleased to announce the disposal of 100% of the issued share capital of Senior Hargreaves Limited ("Hargreaves") to the M+W Group ("M+W").

Hargreaves, previously operating in the Group's Flexonics Division, is one of the UK's leading heating & ventilation ducting suppliers to the nuclear and construction industry.  However, Hargreaves was Senior's only business operating in these markets and, although it had been a successful part of the Group for nearly 60 years, it no longer fitted into the on-going strategic direction of Senior.  M+W is a market-leading global engineering, construction and project management company, specialising in the fields of Advanced Technology Facilities, Life Science & Chemicals, Energy & Environment Technologies and High Tech Infrastructure.  It is privately owned, having revenues of Euro 2.5 billion in 2011.

In the first nine months of 2012 Hargreaves reported sales of £17.0m and operating profit of £0.7m. Net assets at the end of September 2012 were £2.6m.  Operating margins for the Flexonics Division for the first half of 2012 would have been 14.5% if Hargreaves' results had been excluded (13.6% reported including Hargreaves).

In agreement with the Trustee of the Senior plc Pension Plan, and as a consequence of the disposal, a one-off contribution of £6.0m is to be made to the Plan.

Commenting on the disposal, Mark Rollins, Group Chief Executive of Senior plc, said:

"I am very pleased to announce the disposal of Hargreaves to M+W and to wish the management and employees of Hargreaves all the very best for the future with their new, and more logical, owners.  Following the disposal, Senior now has eleven synergistic operations in its Flexonics Division, each operating in niche strategic markets with healthy longer-term growth prospects."

Commenting on the acquisition Peter Greenhalgh, CEO of M+W UK said:

"We are very happy to have concluded the acquisition of Hargreaves.  The Hargreaves team have a long history and extensive experience in technology based projects, which fits well with our strategic plans for sustained growth in our target markets of Science & Research, Technology Manufacturing Facilities and Energy based programs."

As previously notified, the Group will be issuing an Interim Management Statement on Monday 22 October, which will include comments on current trading, as well as hosting a Capital Markets event the same evening focussing upon the Group's Flexonics Division.

Further information

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Simon Nicholls	Group Finance Director, Senior plc	[phone]
Philip Walters	Finsbury Group	[phone]

About Senior

Senior is an international manufacturing group with operations in 13 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.  It operates through two Divisions: Aerospace (64% of H1 2012 revenue) and Flexonics (36% of H1 2012 revenue).  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.

 

END

 

 

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