Interim Management Statement

RNS Number : 3740F

Senior PLC

24 April 2014

 



Interim Management Statement

Ahead of its Annual General Meeting on Friday 25 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 2014 (the "period").

Trading and Financial Position

During the period, demand in the Group's principal markets was consistent with the statement made at the time of the 2013 results announcement on 3 March 2014 and the adverse impact of currency translation, approximately 6% on revenue and operating profit, was also broadly as anticipated. Consequently, the Group's adjusted profit before tax⁽¹⁾ was in line with the Board's expectations for the first three months of the year.

Net debt increased to £79.2m at the end of March, due to a seasonal increase in working capital and the payment of a £5.2m deposit relating to the acquisition of UPECA.  UPECA is a manufacturer of precision-engineered components for the aerospace and oil & gas markets and is located in Malaysia and China.  The acquisition of UPECA completed, as anticipated in early April, for a total consideration, including the assumption of debt, of £75.5m.

Markets and Operations

In the Aerospace Division (65% of 2013 Group sales), activity in the Group's most important market, large commercial aircraft, remained healthy.  Boeing and Airbus delivered a combined 302 aircraft in the first three months of 2014, 7% ahead of the 281 aircraft delivered in the same period of 2013, and their combined net order in-take was slightly ahead of deliveries for the quarter.  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, stabilised in line with expectations and overall volumes in the regional and business jet markets were stable.

In the Flexonics Division (35% of 2013 Group sales), land vehicle markets generally improved as anticipated, with North American truck orders ahead of the same period in 2013 and European passenger-vehicle deliveries starting to recover from the record low volumes seen in 2013.  However, demand in Brazil and India remained weak.  In the Group's industrial markets, the period was impacted by delays in the shipment of a couple of industrial projects in Brazil and North America, which are now expected to be delivered in the second quarter.  As previously anticipated, the large industrial expansion joint order for a North American Catofin project was booked in the period, with shipments due to commence towards the end of the year.

Outlook

The outlook for Senior's markets remains consistent with the position set out in the announcement of 3 March 2014.  Consequently, other than being updated to include the results of UPECA from early April, the Board's expectation for 2014 full year adjusted profit before tax⁽¹⁾ remains unchanged.

Other

The results for the six-month period to 30 June 2014 will be announced on Monday 4 August 2014.

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

Further information

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Derek Harding	Group Finance Director, Senior plc	[phone]
Philip Walters	RLM Finsbury Group	[phone]

Note to Editors

Senior is an international manufacturing Group with operations in 14 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 IMS 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 IMS and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.

 

END

 

 

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