Trading Statement

RNS Number : 2998T

Senior PLC

12 December 2012

 



Pre-Close Period Statement

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, issues this trading update ahead of its financial year-end on 31 December 2012.

Trading

The positive trading reported in the Interim Management Statement ("IMS") on 22 October 2012 has continued, with adjusted profit before tax⁽¹⁾ being in line with the Board's expectations in both October and November.  Cash generation has remained strong, with net debt of £87m at the end of November being below the £93m at the start of the year, despite the acquisition of GAMFG Precision LLC ("GA") for $45m (£28m) in early November 2012.

Markets and Operations

In the Aerospace Division (64% of H1 2012 Group sales), visibility for build rates on existing aircraft programmes remains good and underlying market demand has consequently been largely as expected.  The market for large commercial aircraft remains strong, with Boeing and Airbus increasing their aircraft build-rates broadly as planned whilst continuing to report combined orders in excess of deliveries.  As anticipated, volumes on a number of the Group's military programmes have started to decline as Government budgetary restraints come into effect.

The Flexonics Division (36% of H1 2012 Group sales) has seen largely unchanged conditions from those reported in the October IMS, with the Division continuing to benefit from healthy shipments of large expansion joints in the industrial sector but being impacted by weakness in the European passenger vehicle market.  Demand in the North American truck market has remained satisfactory, albeit at lower levels than earlier in the year.  The integration of GA is proceeding as planned with a number of synergistic customer opportunities being worked upon.

Outlook

With market conditions largely as anticipated, the Board continues to expect 2012 adjusted profit before tax⁽¹⁾ to be in line with its previous expectations and, assuming no further deterioration in market conditions, to make further progress in 2013 and beyond.

The Group intends to issue its 2012 full year results announcement on Monday 25 February 2013.

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

Further information

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