Management Structure Reorganisation

Senior PLC 10 November 1999 Senior reorganises management structure to reflect new strategic priorities Senior plc today announced a new slimmed-down management structure to reflect its changed strategic priorities over the next twelve months. The move will reduce the Group's cost base by more than £2 million a year from 2000 onwards. Since the beginning of 1997, Senior has undergone significant transformation. Non-core businesses have been sold as the Group has focused entirely on its higher margin, higher growth Flexonics Division, which has been expanded by a number of significant acquisitions. Last year Senior spent £68 million on nine businesses and purchases totalling a further £90 million have been completed this year, including the aerospace ducting division of Cork Industries for approximately £52 million in September. In the first half of 1999, Senior Flexonics' three operating divisions, Aerospace, Automotive and Specialised Industrial, accounted respectively for 30.6%, 33.9% and 35.5% of total turnover. The Group's strategic priority over the next twelve months is clearly to focus its management resources on its existing businesses and recent acquisitions, to ensure they contribute fully to Senior's future growth potential. The Group's ongoing acquisition programme will correspondingly be substantially reduced from its recent high levels. The Group's management structure is being changed to reflect this new focus. Bill Kowal, Chief Operating Officer, becomes Acting Division Director - Aerospace, and will concentrate on the Group's Aerospace activities in North America and Europe. This Division is well placed to take advantage of the continuing buoyancy in the regional jet, corporate jet and commercial space markets. Mike Sheppard, Division Director - Automotive, and Carl Francis, Division Director - Specialised Industrial, will report directly to Group Chief Executive Andrew Parrish. Glenn Timms, Director - Corporate Development, is leaving the Group, and responsibility for managing the search for and negotiation of acquisition opportunities will be absorbed within the divisions. In order to implement this reorganisation, the Group will take a total charge of not more than £1 million this year. Senior's Group Chief Executive Andrew Parrish commented: 'Senior has spent almost £160 million on 13 acquisitions over the past two years. These deals have made a significant contribution to the transformation of the Group, which is completely focused on Flexonics. Now we need to concentrate our resources on these acquisitions, as well as our existing businesses, to ensure they contribute fully to Senior's future growth potential, our confidence in which remains strong.' 'I should like to thank Glenn Timms for all his efforts on Senior's behalf over the last two and a half years and to express the Board's appreciation for the major contribution he has made to the rapid development of Senior during this period.' Senior will announce a pre-closed period update for the year ending 31 December 1999 on 11 January 2000. For further information, please contact: SENIOR PLC 01923 775547 Andrew Parrish, Group Chief Executive Terry Garthwaite, Group Finance Director Finsbury 0171 251 3801 James Murgatroyd Morgan Bone Internet users will be able to view this announcement, together with other information about SENIOR PLC, on the web site www.seniorplc.com You may receive future SENIOR PLC News Releases by post, fax or e-mail. If you would like to change from the current method please contact Jane Davie at Finsbury Limited, at the telephone number above or e-mail your request to her at daviej@finsbury.com Notes to Editors SENIOR PLC is an international engineering group. It is the clear global leader in the design, manufacture and marketing of thin-walled flexible tubing and related high technology products, servicing the Aerospace (representing 30.6% of Flexonics' sales), Automotive (33.9%) and Specialised Industrial (35.5%) markets. The Group's major market is North America, which accounted for 60% of sales and more than 90% of operating profits in the half year ended June 1999.

Companies

Senior (SNR)
UK 100

Latest directors dealings