Trading Statement (9652X)
December 15 2010 - 2:00AM
UK Regulatory
TIDMSNR
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 GBP69m at November's
accounting month end being well below the GBP102m 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 GBP4.0m interim
dividend and making a GBP2.5m 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 GBP61.0m to GBP63.5m,
with an average of GBP62.7m.
Further information
Group Chief Executive, Senior
Mark Rollins plc +44 (0) 1923 714 738
Group Finance Director,
Simon Nicholls Senior plc +44 (0) 1923 714 722
Clare Hunt Finsbury Group +44 (0) 20 7251 3801
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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