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Senior posts £136m first-half loss; to cut more jobs

By BFN News | 08:12 AM | Monday 03 August, 2020


Aerospace engineer Senior posted a deeper first-half loss and scrapped its interim dividend after it was hurt by the Covid-19 crisis and the grounding of the Boeing 737 MAX aircraft. Senior also said that it had extended its restructuring activities, with 1,329 employees, or 17% of its headcount, laid off between June 2019 and June 2020. A further reduction of 570 positions was expected in the aerospace division in the second half of 2020, while another around 50 positions would go in the flexonics division. Pre-tax losses for the six months through June amounted to £136.3m, compared to losses of £26.5m on-year, as revenue slumped 30% to £409.0m. Senior booked a goodwill impairment charge of £110.5m. Its adjusted pre-tax profit tumbled 91% to £3.6m. On the positive side, the company said it had notched 'robust' free cash flow of £16m. All of its manufacturing sites were now operational. Restructuring charges would now be around £35m, an increase from the £23m announced at Senior's full-year results. Cumulative savings would now be around £35m in 2020. 'The coronavirus pandemic has had a profound effect on our markets and customers, and we anticipate that the impact will be with us for some time to come,' chief executive David Squires said. 'The restructuring programme, which we launched in November 2019, has progressed in line with plans.' 'Whilst we are doing everything possible to sustain jobs, regrettably we have had to extend and broaden the scope of the restructuring in response to the impact of Covid-19 on our business.' At 8:12am: (LON:SNR) Senior PLC share price was -5.85p at 46.35p Story provided by StockMarketWire.com

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