Senior PLC
13 December 2004
13 December 2004
TRADING UPDATE
Senior plc, the manufacturer of high technology components and systems, issues
the following trading update for the twelve-month period to 31 December 2004.
Overall, trading during the second half of 2004 remains in line with that
anticipated at the time of the interim statement on 5 August 2004. Consequently,
the Group's profit before tax (and loss on disposal) for the full year is
anticipated to be at a similar level to that previously reported for 2003. This
is despite the adverse impact the weakening US$ is having on the Group's
reported sterling results. Year-end net debt is expected to be slightly below
the £57.9m reported at June 2004.
The Group intends to account for pension costs under FRS 17 ('Retirement
Benefits') for the first time in its 2004 full year accounts. The impact of the
adoption of FRS 17 on 2004 underlying earnings per share is expected to be
immaterial. The FRS 17 pension scheme deficit will be brought onto the Group
balance sheet at the year-end.
Aerospace demand improved during the period with the operating profit benefit of
operational improvements and the increased volumes being seen at many of the
Group's Aerospace companies.
In Automotive, demand for new vehicles has been relatively steady, but
increasing raw material prices (particularly for stainless steel), together with
supplier issues at the Group's French operation, have had an adverse impact.
The disposal of the Group's five industrial businesses, which was announced on
12 August, leaves it with three operations in the Industrial sector. Of these,
Pathway's operations have been consolidated onto a single site and the
rationalisation at Hargreaves completed. The first benefits of these actions are
now being seen.
Diesel product development continues strongly and a number of recent programme
wins in North America and Europe mean the Group's capital expenditure will, as
previously reported in the interim statement, increase in 2005. Volume
production on these programmes will start in late 2006. Group net debt is,
therefore, expected to rise during 2005 after four years of continued reduction.
The 2004 full year results will be announced on 3 March 2005.
For further information please contact:
Senior plc
Graham Menzies, Group Chief Executive 01923 714702
Mark Rollins, Group Finance Director 01923 714738
Finsbury Group
Gordon Simpson 020 7251 3801
This announcement, together with other information on Senior plc may be found
at: www.seniorplc.com
Note to Editors:
Senior is an international manufacturing group with operations in 11 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.
This information is provided by RNS
The company news service from the London Stock Exchange D
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