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
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Davie at Finsbury Limited, at the telephone number above or e-mail your
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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.
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