Senior PLC Trading Statement (0530L)
April 23 2015 - 2:01AM
UK Regulatory
TIDMSNR
RNS Number : 0530L
Senior PLC
23 April 2015
Trading Update
Ahead of its Annual General Meeting on Friday 24 April, 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 for the period since 1 January 2015 (the
"period").
Trading and Financial Position
During the period, demand in the Group's principal markets was
largely as anticipated at the time of the 2014 results announcement
on 2 March 2015. Overall, the Group's adjusted profit before tax(1)
for the first three months of the year was consistent with the
Board's expectations, as the impact of a number of near-term
challenges was offset by beneficial foreign exchange rates.
In the Aerospace Division, activity in the Group's most
important market, large commercial aircraft, remained healthy with
Boeing and Airbus delivering a combined 318 aircraft in the first
three months of 2015, 5% ahead of 2014. Against this backdrop,
progress was made in industrialising new aerospace programmes,
although at a slower rate than anticipated. The Group also saw
lower aluminium prices in the quarter reduce the income received
from machined metal waste compared to the prior year.
In the Flexonics Division, North America truck volumes continued
to be strong, although there was some softening in the market for
agricultural and mining vehicles, and industrial activity in Europe
and Brazil remained subdued.
Net debt increased to GBP130m at the end of March, due to the
normal seasonal increase in working capital and capital expenditure
of 1.6 times depreciation. As previously announced on 1 April, the
acquisition of Lymington Precision Engineering ("LPE") resulted in
net debt subsequently increasing by GBP55.8m, being the initial
consideration of GBP45.8m and the payment, into escrow, of GBP10.0m
of contingent "earn-out" consideration. With net debt at 1.3 times
EBITDA(2) following the acquisition, the Group remains well
funded.
Outlook
Overall, the Board's expectation for 2015 full-year adjusted
profit before tax(1) remains unchanged at current exchange rates,
although more second half weighted than historically.
Progress is expected to be made across the Group during 2015,
albeit the previously announced decline in A330 build rates is now
likely to impact the Group sooner than originally anticipated, a
number of new aerospace programmes are taking longer to increase
build rates and the lower oil price is adversely impacting the rate
of conversion to natural gas engines in North America. However,
offsetting these, the North American truck market is ahead of the
prior year and foreign exchange movements are currently
beneficial.
Looking further ahead, aircraft build rates are scheduled to
resume their upward trend in the near term, Senior's global
footprint is providing encouraging opportunities to increase market
share and improvements in operational efficiency can be expected as
production rates regularise. Accordingly, the Group remains well
positioned to make further progress in 2016 and beyond.
Other
The results for the six-month period to 30 June 2015 will be
announced on Monday 27 July 2015.
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.
2. EBITDA is earnings before interest, tax, depreciation and
amortisation.
Further information
Group Chief Executive, Senior +44 (0) 1923 714
Mark Rollins plc 738
Group Finance Director, Senior +44 (0) 1923 714
Derek Harding plc 722
Head of Investor Relations & Leadership +44 (0) 1923 714
Bindi Foyle Development, Senior plc 725
Philip Walters Finsbury +44 (0) 20 7251 3801
Note to Editors
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 trading update 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 trading update
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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