Trading Statement

RNS Number : 3148J

Senior PLC

29 June 2011

 



Senior plc

Pre-Close Period Statement

Senior plc ("Senior" or "the Group"), an international manufacturer of high technology components and systems for the worldwide aerospace, defence, land vehicle and energy markets, issues this trading update for the six-month period to 30 June 2011 (the "first half").

Trading

The Group continued to trade strongly in the second quarter and the Board now expects adjusted profit before tax⁽¹⁾ for the first half of 2011 to be ahead of its previous expectations.  Cash generation has been healthy, but net debt is expected to be slightly higher at the end of the first half than the £63.7m level reported at the end of 2010, principally due to the acquisition of Damar Aerosystems ("Damar") for £15.3m at the end of March.

Markets and Operations

First half revenues are running marginally higher than anticipated with the recovery in the global truck markets benefiting Senior's North American and German Flexonics operations and the acquisition of Damar, together with increased production of the C130J military transport aircraft and the Boeing 787, benefiting the Group's Aerospace Division.  Elsewhere, demand has been broadly in line with expectations, except for the European car market which has been slightly weaker.  The overall revenue increase, and the Group's ongoing focus on operational excellence, is expected to result in first half operating margins for both Divisions being ahead of those reported for the first half of 2010.

2011 has seen further positive news for the large commercial aerospace market (the most significant market segment for Senior), with Boeing and Airbus announcing further increases in the build rates for their main platforms, such that they now jointly anticipate delivering over 40% more aircraft in 2014 than they did in 2010.  Their confidence is underpinned by order books of nearly seven years and strong order intake in the first half, as evidenced by announcements at last week's Paris Airshow.

Outlook

The Group's strong first half performance, together with a generally healthy outlook for the remainder of the year, now leads the Board to expect 2011 full year adjusted profit before tax⁽¹⁾ to be ahead of its previous expectations.

Looking further ahead, the underlying fundamentals of the business remain healthy.  The large commercial aerospace industry is anticipated to be strong for a number of years with Boeing and Airbus increasing build rates and the Boeing 787 due to be delivered to customers starting in the third quarter of this year.  Elsewhere across the Group, the outlook appears generally positive with the regional and business jet manufacturers forecasting build rates to gradually improve from the current low levels, Senior's main military platforms expected to remain relatively solid and the North American truck market showing some signs of recovery.  Whilst the macro economic outlook remains uncertain, the Group's industrial businesses are well positioned to benefit from growth in their end markets when this occurs.

Overall, the outlook for Senior remains encouraging for the remainder of the year and over the long term.

2011 First Half Results

The results for the six-month period to 30 June 2011 will be announced on Monday 1 August 2011.

Note:
1.	Adjusted profit before tax is before loss/profit on sale of fixed assets, amortisation of intangible assets arising on acquisitions and acquisition costs.

Further information

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

About Senior

Senior is an international manufacturing group with operations in 11 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.

 

END

 

 

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