Trading Statement

RNS Number : 9652X

Senior PLC

15 December 2010

 



Senior plc

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 2010.

Trading

The positive trends reported in the Interim Management Statement ("IMS") on 19 October 2010 have continued, with adjusted profit before tax⁽¹⁾ being slightly ahead of the Board's expectations in both October and November.  This was largely due to a better than anticipated product mix for the Flexonics Division.  Cash generation has remained strong, with net debt of £69m at November's accounting month end being well below the £102m at the start of the year.

Markets and Operations

In the Aerospace Division, 59% of H1 2010 Group sales, visibility for existing programmes is good and markets have consequently been largely as expected.  The market for large commercial aircraft has continued to strengthen, with Boeing and Airbus announcing improved order in-take and increased build rates for many of their aircraft, and the Group's main military programmes remain strong.  However, the regional and business jet markets are showing few signs of improvement and this is causing the Group to review the carrying value of goodwill held in respect of its Capo Industries operation acquired in early 2008.

With the exception of the benefit of increased demand for emergency repair of large expansion joints, the Flexonics Division (41% of H1 2010 Group sales) has seen largely unchanged conditions from those reported in the October IMS.  The Group continues to benefit from modest improvements in the European and North American heavy truck markets, and underlying demand in industrial markets remains satisfactory.  Integration of the WahlcoMetroflex industrial damper operation, acquired in August 2010, with the Group's North American large expansion joint business has proceeded as planned.

2010 Outcome

As a result of this stronger than expected performance, the Group's adjusted profit before tax⁽¹⁾ for the full year 2010 is now anticipated to be slightly above the top end of current market expectations⁽²⁾.  In addition, despite paying the £4.0m interim dividend and making a £2.5m voluntary payment into the Group's UK final salary pension scheme in the December accounting month, continuing strong cash generation means that year-end net debt is expected to be only slightly higher than the level at the end of November.

The preliminary announcement of the Group's 2010 Final Results is scheduled for Monday 28 February 2011.

Note:
1.	Adjusted profit before tax is before loss/profit on sale of fixed assets, goodwill impairment, acquisition costs and amortisation of intangible assets arising on acquisitions.
2.	Market expectations, as reported by Bloomberg prior to release of this announcement, are for 2010 adjusted profit before tax to be in the range of £61.0m to £63.5m, with an average of £62.7m.

Further information

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Simon Nicholls	Group Finance Director, Senior plc	[phone]
Clare Hunt	Finsbury Group	[phone]

About Senior

Senior is an international manufacturing group with operations in 11 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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