TIDMSNR
RNS Number : 1293Y
Senior PLC
27 February 2012
Results for the year ended 31 December 2011
Record results, with adjusted profit before tax up 19% to
GBP78.0m. Group outlook remains encouraging.
FINANCIAL HIGHLIGHTS Year ended 31 December
2011 2010
------------------------------------- ------------ ----------- ---------
REVENUE GBP640.7m GBP566.9m +13%
------------------------------------- ------------ ----------- ---------
OPERATING PROFIT GBP83.0m GBP62.2m +33%
ADJUSTED OPERATING PROFIT (1) GBP88.3m GBP75.4m +17%
ADJUSTED OPERATING MARGIN (1) 13.8% 13.3% +0.5ppts
------------------------------------- ------------ ----------- ---------
PROFIT BEFORE TAX GBP72.7m GBP52.1m +40%
ADJUSTED PROFIT BEFORE TAX (1) GBP78.0m GBP65.3m +19%
------------------------------------- ------------ ----------- ---------
BASIC EARNINGS PER SHARE 13.68p 10.11p +35%
ADJUSTED EARNINGS PER SHARE (1) 14.55p 12.01p +21%
------------------------------------- ------------ ----------- ---------
TOTAL DIVIDENDS (PAID AND PROPOSED)
PER SHARE 3.80p 3.12p +22%
------------------------------------- ------------ ----------- ---------
FREE CASH FLOW (2) GBP55.6m GBP58.8m -5%
------------------------------------- ------------ ----------- ---------
NET DEBT (2) GBP93.0m GBP63.7m GBP29m
increase
------------------------------------- ------------ ----------- ---------
(1) Adjusted figures are stated before loss on disposal of fixed
assets of GBP0.3m (2010 - GBP0.2m profit), a GBP4.4m charge for
amortisation of intangible assets acquired on acquisitions (2010 -
GBP4.6m), a GBPnil charge for impairment of goodwill (2010 -
GBP8.7m) and acquisition costs of GBP0.6m (2010 - GBP0.1m).
Adjusted earnings per share takes account of the tax impact of
these items.
(2) See Notes 11(b) and 11(c) for derivation of free cash flow
and of net debt, respectively.
The Group's principal exchange rates for the US dollar and the
Euro, applied in the translation of revenue, profit and cash flow
items at average rates were $1.60 (2010 - $1.55) and EUR1.15 (2010
- EUR1.16), respectively. The US dollar and Euro rates applied to
the balance sheet at 31 December 2011 were $1.55 (2010 - $1.57) and
EUR1.20 (2010 - EUR1.17), respectively.
Group Highlights
- Strong revenue growth for both the Aerospace and Flexonics Divisions
- A second consecutive year of record Group operating margins,
now 13.8%
- Adjusted profit before tax of GBP78.0m, 19% ahead of the prior
year
- Acquisition of two commercial aerospace businesses, with combined
annual revenue of GBP70m
- Strong cash flows resulting in a continued prudent level of net
debt
- Boeing 787 and 747-8 entered into service. Airbus and Boeing
order intake strong
- Full year dividend proposed to increase by 22%, in line with
the growth in adjusted EPS
- Group outlook remains encouraging
Commenting on the results, Martin Clark, Chairman of Senior plc,
said:
"Senior delivered a record set of results in 2011. Adjusted
profit before tax increased by 19%, driven by strong revenue growth
and continuing margin improvements, and healthy operating cash
flows resulted in a net debt to EBITDA ratio of only 0.8 times
after significant investment in capacity expansion and two
commercial aerospace acquisitions. Trading has been in line with
expectations since the start of 2012 and this, combined with the
healthy long-term prospects for the Group, gives the Board the
confidence to recommend a 22% increase in the full year dividend
for 2011, in line with the increase in adjusted earnings per
share."
For further information please contact:
Mark Rollins, Group Chief Executive, Senior plc 01923 714738
Simon Nicholls, Group Finance Director, Senior
plc 01923 714722
Philip Walters, RLM Finsbury Group 020 7251 3801
This Release represents the Company's dissemination announcement
in accordance with the requirements of Rule 6.3.5 of the Disclosure
and Transparency Rules of the United Kingdom's Financial Services
Authority. The full Annual Report & Accounts 2011, together
with other information on Senior plc, may be found at:
www.seniorplc.com
The information contained in this Release is an extract from the
Annual Report & Accounts 2011, however, some references to Note
and page numbers have been amended to reflect Note and page numbers
appropriate to this Release.
The Directors' Responsibility Statement has been prepared in
connection with the full Financial Statements, Operating and
Financial Review and Directors' Report as included in the Annual
Report & Accounts 2011. Therefore, certain Notes and parts of
the Directors' Report reported on are not included within this
Release.
Note to Editors
Senior is an international manufacturing Group with operations
in 12 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.
Cautionary Statement
This Release 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 Release and they
should be treated with caution due to the inherent uncertainties
underlying any such forward-looking information.
CHAIRMAN'S STATEMENT
Senior delivered a record set of results in 2011. Adjusted
profit before tax increased by 19%, driven by strong revenue growth
and continuing margin improvements, and healthy operating cash
flows resulted in a net debt to EBITDA ratio of only 0.8 times
after significant investment in capacity expansion and two
commercial aerospace acquisitions. Trading has been in line with
expectations since the start of 2012 and this, combined with the
healthy long-term prospects for the Group, gives the Board the
confidence to recommend a 22% increase in the full year dividend
for 2011, in line with the increase in adjusted earnings per
share.
Group Strategy
The Group operates in five strategic market sectors: three in
Aerospace - Structures, Fluid Conveyance Systems and Gas Turbine
Engines; and two in Flexonics - Land Vehicle Emission Control and
Industrial Process Control. Senior's products are typically single
sourced, highly engineered and require advanced manufacturing
processes for their production. The Group's overall strategy, as
well as the specific strategic objectives and achievements applying
to each of the five market sectors, is set out in more detail in
the Operating and Financial Review. Of the very significant
progress made during 2011 in delivering the Group's stated
strategy, the acquisitions of two commercial aerospace businesses,
Damar Machine Company ("Damar") on 25 March and Weston EU Limited
("Weston") on 25 November, are particularly significant for the
Group's future. Damar, located close to Boeing's commercial
aircraft assembly facilities in Seattle, USA, and Weston, with
facilities in the UK and Thailand, significantly increase the
Group's exposure to the strongly growing commercial aircraft market
place and extend the Group's aerospace machining capabilities into
Europe and Asia. Weston, with its significant Airbus exposure, also
provides more balance to Senior's historical bias to Boeing
aircraft programmes as well as adding new manufacturing, product
and geographic capabilities to the Group. It has made a solid start
under Senior's ownership and integration is on track.
2011 Financial Results
During 2011, Group revenue increased by 13% to GBP640.7m (2010 -
GBP566.9m), with sales to the commercial aircraft and heavy-duty
land vehicle markets seeing the strongest growth. Reported
operating profit, excluding goodwill impairment (2011 - GBPnil;
2010 - GBP8.7m) increased by 17% to GBP83.0m (2010 - GBP70.9m),
with adjusted operating margins improving to a record level of
13.8% (2010 - 13.3%). The improved margins bear testament to
Senior's long-standing focus on operational excellence. Reported
profit before tax was GBP72.7m (2010 - GBP52.1m), a 40%
improvement.
Adjusted profit before tax, the measure which the Board believes
most accurately reflects the true underlying performance of the
business, increased by 19% to GBP78.0m (2010 - GBP65.3m). Adjusted
earnings per share increased by 21% to 14.55 pence (2010 - 12.01
pence). A full derivation of adjusted profit before tax is included
in the Operating and Financial Review.
The Group continued to demonstrate its strong cash-generative
nature, delivering free cash flow of GBP55.6m (2010 - GBP58.8m)
after increased net capital expenditure investment of GBP21.8m
(2010 - GBP12.1m). This strong performance meant the year-end net
debt level of GBP93.0m (2010 - GBP63.7m) represented only 0.8 times
(31 December 2010 - 0.7 times) earnings before interest, tax,
depreciation and amortisation ("EBITDA"), even after acquisition
expenditure of GBP68.6m in the year.
The Group's 2011 financial performance is discussed in greater
detail in the Operating and Financial Review which follows this
statement.
Dividend
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