Trading Update

Senior PLC 11 January 2000 TRADING UPDATE In accordance with the undertaking given to the market on 10 November, 1999, the Board of Senior is issuing the following pre-closed period update on trading for the year to December 1999. Automotive The US passenger car market provided record orders and sales for Senior Flexonics Automotive Division in 1999 and early indications are that demand continues to be strong in the first quarter of 2000. Demand is being boosted by increasing deliveries of the new Senior Flexonics AIR tube to GM as the product becomes specified across their model range in order to meet new legislative requirements on emissions. European demand remains flat although recent significant success with the Group's first order for flexible exhaust connectors from PSA Citroen, for delivery in 2001, underpins the Group's growing confidence in this more fragmented and competitive market. The rationalisation programme undertaken in the UK has now been completed successfully, resulting in a lower cost base for 2000. Aerospace The North American commercial aircraft market continued its cyclical softening throughout the second half of 1999. The trading effect of the resulting 'push outs' was exacerbated by the temporary delays in an otherwise buoyant space market. Current indications are that this trading climate will remain unchanged until at least the second half of 2000, at which time supplies to new regional and business jet programmes should commence. This, together with the anticipated recovery in the space market should offer improved activity levels. European business, where the downturn is significantly less, continues to develop favourably. The acquisition of Cork Industries has been well received by customers and is now expected to provide returns ahead of initial expectations. The investigation into Ketema's accounting irregularities has been completed, with final results in line with those already advised in December 1999. Specialised Industrial As the market has already been informed, reduction in worldwide customer demand and associated pricing pressures provided a very difficult climate in 1999 which resulted in lower sales and significantly lower level of profitability, particularly in continental Europe. Having virtually completed the rationalisation programme for Air Systems, the division is now benefiting from its lower cost base and from improving activity levels in the UK and Germany, thus providing opportunity for recovery in 2000. The acquisition of Pathway required significant assimilation into Senior Flexonics' existing expansion joint activity and this process is expected to be complete by the half year. Improving enquiry levels, arising from increased oil prices, should support a recovery in demand for petrochemical expansion joints which is now expected to begin in the second half of the year. Outlook Trading conditions at the end of 1999 remained in line with the updated view given to the market on 3 December, 1999 and the Board's profit expectations for the current year therefore remain unchanged. With significant reorganisations either already completed or nearing completion, and with full year contributions from Pathway and Cork, the prospects of a recovery in profitability during 2000 are encouraging. Enquiries: Senior plc Andrew Parrish, Group Chief Executive Terry Garthwaite, Group Finance Director 01923 775547 Finsbury James Murgatroyd Morgan Bone 0207 251 3801

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