Senior PLC
18 December 2006
Senior plc
Pre Close Period Statement
Senior plc, a manufacturer of high technology components and systems,
principally for the aerospace, diesel-engine and energy markets, issues this
trading update for the twelve month period to 31 December 2006.
Overall trading in the period has been healthy, particularly in the Group's
aerospace markets, and the Group's 2006 adjusted profit before tax(*) is
expected to be in line with the Board's expectations, despite the adverse
translation effect of the weakening US$.
After a number of years of selling businesses, it was pleasing that two
aerospace companies, Sterling Machine (end of January) and AMT (end of October),
were acquired during 2006. They are highly complementary to the Group's existing
operations and significantly strengthen Senior's position in the buoyant
worldwide aerospace market. Both operations have made excellent starts within
the Group and are contributing as expected.
Strong markets, operational improvements and the recent acquisitions mean
operating profits for the Aerospace Division are expected to be significantly
higher in 2006 than in 2005. Overall demand has been strong and prospects remain
good, with orders for large civil aircraft again expected to be well ahead of
deliveries during 2006. A number of new programmes, notably the Boeing 787, are
currently in development. The business jet market is very healthy and the
military and regional jet markets are stable. The consequence of the increasing
demand is a general drive to increase build rates and for the large primes, such
as Boeing and Rolls-Royce, to outsource more work to suppliers like Senior. As a
consequence capital expenditure for the division is rising to increase capacity
to meet the growing demand. Increases in raw material prices and their
availability continue to be issues for the industry.
In the Flexonics Division, demand has been largely as expected. The Division's
automotive markets, which are more focussed on front wheeled drive passenger
vehicles than on the larger sports utility vehicles and pick-up trucks, have
generally been flat and remain competitive. On the other hand, the power
generation, chemical processing and oil and gas markets have all been strong.
The new products for the heavy duty diesel engines are now in the final stages
of production launch and the heavy truck markets, both in the USA and in Europe,
continue to offer good future opportunities. Additional engineering resource is
being deployed to address these opportunities. For 2006, operating profits for
the Flexonics Division are expected to be ahead of the prior year.
The acquisitions of Sterling Machine and AMT were both funded by a combination
of new shares and additional borrowings. Consequently, net debt has increased
during the year and is anticipated to be around £105m at the year-end, with the
final outcome partially dependent upon the closing $:£ exchange rate.
Looking ahead, the prospects for Senior remain very encouraging.
The 2006 full year results are scheduled to be announced on Thursday 1 March
2007.
(*) Adjusted profit before tax is before profit / loss on sale of fixed assets
and before amortisation of intangible assets arising on acquisition
For further information please contact:
Senior plc
Graham Menzies, Group Chief Executive 01923 714702
Mark Rollins, Group Finance Director 01923 714738
Finsbury Group
Adrian Howard 020 7251 3801
This announcement, together with other information on Senior plc may be found
at: www.seniorplc.com
Note to Editors:
Senior is an international manufacturing group with operations in 11 countries.
Senior designs, manufactures and markets high technology engineered components
and systems, principally for the aerospace, diesel-engine and energy markets.
This information is provided by RNS
The company news service from the London Stock Exchange
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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