Senior PLC Interim Management Statement (9401U)
October 22 2014 - 2:01AM
UK Regulatory
TIDMSNR
RNS Number : 9401U
Senior PLC
22 October 2014
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 2014 (the "Period").
Trading and Financial Position
The Group's adjusted profit before tax(1) for the Period was in
line with the Board's expectations. Net debt at the end of
September was slightly higher than anticipated due to currency
impacts and an increased investment in working capital.
Markets and Operations
Senior operates through two Divisions: Aerospace (66% of H1 2014
Group sales) and Flexonics (34% of H1 2014 Group sales).
In the Aerospace Division, the large commercial aircraft market,
which accounts for 60% of the Aerospace Division's revenue,
remained healthy. Airbus and Boeing delivered a combined 971
aircraft in the first nine months of 2014, an increase of 5% over
the 921 aircraft delivered in the same period of 2013. Their
combined year-to-date net order intake of 1,791 aircraft (nine
months 2013: 1,952 aircraft) was nearly twice the number of
deliveries. The resultant order books, nearly nine years at current
build rates, continue to provide a very strong foundation for
future growth. This was demonstrated by Boeing recently announcing
a further increase in the build-rate for its B737 aircraft
(Senior's largest revenue programme), to 52 per month in 2018.
Certification of the Airbus A350, an important future growth
platform for Senior, has proceeded to plan with the first customer
delivery still anticipated before the end of 2014.
Elsewhere, the regional jet, business jet and military markets
have performed largely in line with the expectations set out in the
Interim Results Statement issued on 4 August. Flight testing of
Bombardier's CSeries aircraft, on which Senior has significant
content, recommenced in the Period with Bombardier still expecting
the first customer delivery to take place before the end of 2015.
As previously announced with the Interim Results, the operational
challenges associated with industrialising a greater number of new
commercial aerospace programmes continue, particularly at SSP. The
physical relocation of Capo to Ketema was completed, as planned,
towards the end of the Period, although the requalification of
products has been more time consuming than anticipated. This is
expected to result in a GBP1.7m increase in the relocation
provision set up at the end of 2013.
In the Flexonics Division, healthy demand from the North
American heavy-duty diesel engine market, an improved European
automotive market compared to the prior year and a strong
performance from the newly acquired Upeca oil and gas business in
Asia, resulted in an encouraging third-quarter performance.
European and Brazilian industrial markets, however, remained
subdued, and demand for products going to the agricultural and
construction equipment manufacturers began to slow towards the end
of the Period. Delivery of the large expansion joint project for a
Catofin plant remains on schedule to commence before the
year-end.
On the evening of 19 October, a fire occurred at the Group's
GBP6m revenue Mexican aerospace facility. Nobody was injured and
the business is insured. The extent of the damage is currently
being assessed and is not anticipated to have a material effect on
the Group.
Outlook
Given the financial performance for the first nine months of the
year and the current levels of activity, the Board expects 2014
adjusted profit before tax(1) to be in line with its previous
expectations.
The commercial aerospace sector continues to grow at a healthy
rate and, assuming exchange rates are broadly similar to current
levels and no material impact arises from the recent increased
global uncertainty, the Board believes the Group remains well
positioned to make solid progress in 2015 and beyond.
Other
The recruitment process for a new Group Chief Executive to
succeed Mark Rollins, who previously announced his intention to
retire from a full-time executive career during the first half of
2015, is progressing as planned.
The Group expects to announce its 2014 full year results on
Monday 2 March 2015.
Note:
1. Adjusted profit before tax is before loss/profit on sale
of fixed assets, pension curtailment charges, one-off costs
associated with the relocation of operations, acquisition
costs and amortisation of intangible assets arising on
acquisitions.
Further information
Group Chief Executive, Senior
Mark Rollins plc +44 (0) 1923 714 738
Group Finance Director,
Derek Harding Senior plc +44 (0) 1923 714 722
Head of Investor Relations
Bindi Foyle & Leadership Development +44 (0) 1923 714725
Philip Walters RLM Finsbury +44 (0) 20 7251 3801
About Senior
Senior is an international manufacturing group with operations
in 14 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 Interim Management Statement contains certain
forward-looking statements. Such statements have been made by the
Directors in good faith based on information available to them at
the time of their approval of this Statement. These statements
should therefore be treated with caution due to the inherent
uncertainties, including both economic and business risk factors,
underlying such forward-looking information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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