Interim Management Statement

RNS Number : 1744D

Senior PLC

25 April 2013

 



Senior plc

Interim Management Statement

Ahead of its Annual General Meeting on Friday 26 April, 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 its Interim Management Statement for the period since 1 January 2013 (the "period").

Trading and Financial Position

Trading was positive in both the Aerospace and Flexonics Divisions during the period with the Group's adjusted profit before tax⁽¹⁾, partially assisted by beneficial currency movements, marginally ahead of the Board's expectations for the first three months of the year.  Net debt, adversely impacted by currency movements and the expected effect of increased activity, increased to £93m at the end of March.

Markets and Operations

In the Aerospace Division (66% of 2012 Group sales), production of large commercial aircraft, the Group's most important market, increased at the anticipated healthy rate.  Boeing and Airbus delivered a combined 281 aircraft in the first three months of 2013, ahead of the 268 aircraft delivered in the same period of 2012, despite Boeing delivering only one B787 aircraft in the period due to its temporary grounding.  Given the importance to Senior of this aircraft, we are encouraged by the industry's expectation that deliveries of the B787 will shortly recommence.  The combined net order in-take for Boeing and Airbus in the first quarter was once again well ahead of deliveries, with their combined order book at the end of March, of 9,393 aircraft, some 11% higher than the 8,441 backlog a year ago. Elsewhere in the Aerospace Division, build rates for the Group's main defence programmes, such as the Black Hawk helicopter and C-130J military transport aircraft, declined broadly in line with expectations whilst overall volumes in the regional and business jet markets were relatively stable.

The Flexonics Division (34% of 2012 Group sales) performed well in the period.  In land vehicle markets, healthy volumes of Senior's products for North American heavy trucks and improved manufacturing efficiencies offset the effect of a continued softening in demand for passenger vehicles in Europe, which particularly affected the Division's French operation.  Overall, the Group's principal industrial operations performed broadly as anticipated in the first quarter, with sales of large expansion joints and fuel cell products ahead of expectation but our business in Brazil impacted by delays in order-placement.

The two businesses acquired over the past six months, GA Precision in November 2012 and Atlas Composites in February 2013, have been successfully integrated into the Group and both made solid contributions in the period.

The Board

As previously announced, after five years as the Group's Finance Director, Simon Nicholls is to leave Senior on 30 April to take up a similar position at Cobham.  During his time with the Group, Senior has made significant progress and the Board would like to extend its thanks to Simon for his strong contribution to the Group's success and to wish him well for the future.  As announced on 27 March, Derek Harding will join as the Group's new Finance Director on 2 September.

Outlook

Senior has started the year marginally ahead of expectations and the outlook for Senior's markets remains broadly consistent with the overall positive view described in its 25 February preliminary results announcement.  Consequently, having taken into consideration the continuing macro-economic uncertainty in a number of the Group's operating countries and the potential for future volatility in the Group's land vehicle markets and exchange rates, the Board's expectation for 2013 full year adjusted profit before tax⁽¹⁾ remains unchanged.

Other

The results for the six-month period to 30 June 2013 will be announced on Monday 29 July 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]
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.

 

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