Senior PLC Market Update (6340H)
March 26 2020 - 3:00AM
UK Regulatory
TIDMSNR
RNS Number : 6340H
Senior PLC
26 March 2020
Senior plc - Market Update
Senior plc ("Senior" or the "Group"), an international
manufacturer of high technology components and systems, principally
for the worldwide aerospace, defence, land vehicle and power &
energy markets, today issues this market update.
Since the release of our 2019 results we have been closely
monitoring the development of the coronavirus (COVID-19)
situation.
The Health and Safety of our employees is always our highest
priority in Senior. We are providing best practice guidelines to
all of our businesses and are following national and local
government instructions and guidance in the multiple jurisdictions
in which we operate. We have paid special attention to those in our
community who are most vulnerable and we are doing all that we can
to support our employees during this unprecedented crisis.
Alongside assuring our main priority of the health and safety of
employees, we have implemented detailed and flexible business
continuity plans for each of our operating businesses. Daily
oversight of these plans and actions is being undertaken by senior
executives, chaired by the Group Chief Executive Officer.
It is clear that the coronavirus (COVID-19) is causing
macroeconomic disruptions to our end markets and their respective
supply chains.
Until the extent and duration of the disruption is better
understood, the Board believes that taking actions to conserve cash
is the most prudent way to manage through the crisis, including
curtailing capital expenditure, tight management of our working
capital and further cost cutting actions. In the circumstances,
given the increasing level of uncertainty, the Board is no longer
recommending the payment of the 2019 final dividend of 5.23 pence
per share at the forthcoming Annual General Meeting ("AGM")
scheduled for 24 April 2020. Resolution 3 will therefore be
withdrawn from the AGM.
At 31 December 2019 our committed borrowing facilities were
GBP305m with an average maturity of 4.4 years and the Group had
headroom of GBP159m under these committed facilities. Leases
capitalised on the balance sheet from the adoption of IFRS 16 (31
December 2019: GBP84m) do not form part of the definition of debt
under these facilities and do not impact the Group's lending
covenants.
We have two covenants for these facilities. Net debt to EBITDA
must not exceed 3.0x. At 31 December 2019 the ratio was 1.1x.
Interest cover must be higher than 3.5x. At 31 December 2019 this
was 16.9x.
We continue with our restructuring plan, which is delivering the
expected benefits. This is an on-going process and we are actively
monitoring events and will take further action as appropriate.
Trading in the first two months of the year has been in line
with our expectations. However, while we anticipate the structural
long-term drivers of our end markets remain in place, trading for
the rest of 2020 will be impacted. As a result, we are suspending
guidance for 2020.
Annual General Meeting update - change of venue and time
The Company's Annual General Meeting is due to be held on Friday
24 April 2020. In the current circumstances, the Board has taken
the decision to move the location of the AGM to the Company's Head
Office at 59/61 High Street, Rickmansworth, WD3 1RH and to change
the time of the meeting to 9.00am.
To adhere to the Government's instructions around social
distancing, non-essential travel and the limit on public
gatherings, shareholders are strongly discouraged from attending in
person. Full details of the revised proceedings will be announced
in the near future.
We encourage shareholders to submit their proxies as early as
possible. Further information on how shareholders can submit their
proxies can be found in the Notice of 2020 Annual General Meeting.
The deadline for submitting proxies will be 9:00am on Wednesday 22
April 2020.
Notes
This announcement contains inside information.
Further information
Director of Investor Relations,
Jennifer Ramsey Senior plc +44 (0) 1923 714 722
Philip Walters Finsbury +44 (0) 20 7251 3801
About Senior
Senior is an international manufacturing group with operations
in 13 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 power & 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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