Interim Management Statement (7477Q)
October 25 2011 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 7477Q
Senior PLC
25 October 2011
Senior plc
Interim Management 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 interim management statement for the period
since 1 July 2011 (the "period").
Trading and Financial Position
Trading during the period was healthy, continuing the
performance seen in the first half of the year, with the Group's
adjusted profit before tax in line with the Board's
expectations.
Cash generation remained strong, with net debt at the end of
September being below the GBP62.9m reported at the end of June.
During the period, a new GBP60m revolving credit facility was put
in place. The facility matures in 2016 and is currently
undrawn.
Markets and Operations
Senior operates through two Divisions: Aerospace (60% of H1 2011
Group sales) and Flexonics (40% of H1 2011 Group sales). Overall,
market conditions in the period were broadly as anticipated at the
time of the Half Year Results announcement in early August.
Within the Aerospace Division's principal market, production of
large commercial aircraft continued at healthy levels with Boeing
and Airbus delivering a combined 723 aircraft in the first nine
months of 2011 (nine months 2010: 726 aircraft). Their combined YTD
net order intake of 1,464 aircraft (nine months 2010: 720 aircraft)
was very strong, partially as a result of the recent decisions
taken by Airbus and Boeing to put new, more fuel efficient, engines
on their narrow bodied platforms in four or five years' time. Their
resultant seven to eight year order books, at current build rates,
bode well for the future. Importantly, the initial customer
delivery of the Boeing 787 aircraft, a key future programme for
Senior, took place in September and the initial delivery of the new
Boeing 747-8 was made in October. Elsewhere in the Aerospace
Division, build rates for the Group's main defence programmes, such
as the Black Hawk helicopter and C130J military transport aircraft,
remained strong despite increasing Governmental budgetary
constraints. However, as anticipated, the regional and business jet
markets, which are less important to Senior, remained weak, with
Bombardier announcing build-rate reductions for its regional jets
starting in early 2012.
The Flexonics Division performed well, and broadly as
anticipated, in the period. In the land vehicle markets, increased
production of heavy trucks, particularly in North America, helped
offset a softening in demand for non-premium passenger vehicles in
Europe and latterly Brazil. In the industrial markets, the strength
of the Group's German operation and healthy emergency repair work
for the Group's expansion joint business in Texas mitigated the
effects of the slower than anticipated implementation of emission
legislation in North America for coal-fired power stations. Looking
forward, a solid order in-take in the period for the Group's
industrial businesses helps underpin the anticipated performance
for 2012.
The Board
After ten years on the Board of Senior, and over four years as
its Chairman, Martin Clark has indicated his intention to retire
from the Board at the next Annual General Meeting, in April 2012.
During his tenure as Chairman, Senior has made significant progress
and the Board would like to extend its thanks to Martin for his
strong leadership and dedicated service on behalf of Senior over
the years and to wish him well for the future. External recruitment
has now commenced for a new Chairman.
Outlook
Whilst macroeconomic uncertainty has increased in the past few
months, Senior has not seen any material change in underlying order
trends since the end of June. The Group continues to perform
strongly with Senior's most important end market, the large
commercial aircraft industry, anticipating a long-term period of
healthy growth. Consequently, the Board expects 2011 adjusted
profit before tax(1) to be in line with its previous expectations
and, assuming anticipated market conditions prevail, believes the
Group remains well positioned for further progress in 2012 and
beyond.
Other
Later today, Senior is hosting a capital markets event for
investors and analysts, which will include presentations by
management focussing on the Group's Aerospace Structures Division
and the large commercial aircraft market. There will be no further
update on current trading. In addition, the Group intends to issue
a pre-close trading update on Thursday 15 December 2011, ahead of
its full year results announcement on Monday 27 February 2012.
Note:
(1) Adjusted profit before tax is before loss/profit on sale of fixed assets, acquisition costs
and amortisation of intangible assets arising on acquisitions.
Further information
Mark Rollins Group Chief Executive, Senior plc +44 (0) 1923 714 738
Simon Nicholls Group Finance Director, Senior plc +44 (0) 1923 714 722
Philip Walters RLM 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,
diesel-engine, exhaust system and energy markets. It employs over
5,300 people worldwide. 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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