TIDMSNR
RNS Number : 0247S
Senior PLC
11 March 2021
Annual Report
The Senior plc Annual Report & Accounts 2020 ("Annual
Report") has been submitted to the National Storage Mechanism and
is available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism . The Annual
Report can also be found on the Company's website at:
http://www.seniorplc.com/investors/reports.aspx
2021 Annual General Meeting
The 2021 Annual General Meeting of Senior plc is to be held at
the offices of the Company at 59/61 High Street, Rickmansworth, WD3
1RH at 9.00 a.m. on Friday 23 April 2021. The Notice of AGM will be
published and distributed to shareholders in due course.
Impact of COVID-19 on AGM arrangements - In light of the
prevailing UK Government restrictions around COVID-19 and the
Company's desire to protect the health and well-being of
shareholders and other attendees, the AGM is currently planned to
be held as a closed meeting and convened with the minimum quorum of
two employee shareholders of the Company present. The situation is
constantly evolving and the Government may change the current
restrictions or implement further measures.
As a result, shareholders will not be permitted to attend the
AGM in person and, in the interests of safety, anyone seeking to
attend the Meeting in person will be refused entry.
Shareholder Engagement and Questions - The Board attaches great
importance to the AGM, as it provides shareholders a forum to hear
directly from the Board on how the Company is progressing and to
ask questions to the Directors.
Although shareholders will not be able to attend the AGM in
person, arrangements are being made to enable shareholders to
participate in the AGM remotely; details will be announced in due
course and will be provided on the Company's website at
www.seniorplc.com .
In addition to providing shareholders with the opportunity to
participate remotely in the AGM, the Company encourages
shareholders to submit any questions on the business of the AGM by
emailing companysecretary@seniorplc.com.
These revised AGM arrangements will not amount to attendance at
the AGM as a matter of law and shareholders will not be allowed to
vote using these arrangements. All shareholders are recommended to
vote by proxy in accordance with the instructions set out in the
Notice of Meeting and the accompanying Proxy Form. Voting at the
AGM will be on a poll, reflecting all proxy voting instructions
duly received.
Disclosure Guidance and Transparency Rule 6.3.5R
The information contained in the 2020 Annual Results
announcement released on 8 March 2021, including the Directors'
responsibility statement, together with this announcement and the
disclosures set out in the Appendices below are made in compliance
with DTR 6.3.5 R and have been extracted in full from the Annual
Report; page number references and references to Notes to the
Company Financial Statements refer to page numbers and to Notes to
the Company Financial Statements in the Annual Report respectively.
This announcement is not a substitute for reading the Annual Report
in its entirety.
APPIX A - Related party transactions
Related party transactions are set out in Note 52 to the Company
Financial Statements, on page 144 of the Annual Report and are
extracted in full below.
The remuneration of the Directors and Senior Managers, who are
the key management personnel of the Group, is set out in the
Remuneration Report on pages 66 to 84. In 2020, the Company
recognised share-based payment expense of GBP0.5m (2019 - GBP0.2m)
in relation to the executive Directors.
The Group has related party relationships with a number of
pension schemes. Transactions between the Group and these pension
schemes are disclosed in Note 34.
Bloom Energy Corporation is a related party of the Group as
Susan Brennan, an independent non-executive Director of the Group,
is its Executive Vice-President and Chief Operations Officer.
In 2020, the Group sold GBP2.2m (2019 - GBP1.8m) of components
to Bloom Energy Corporation. The gross receivable position as at 31
December 2020 was GBP0.4m (2019 - GBP0.5m).
APPIX B - Risks and uncertainties
The principal risks and uncertainties of the Group are set out
on pages 32 - 37 of the Annual Report and are extracted in full
below.
The Group's organisation and culture enabled a strong and timely
response to the risks posed by the pandemic, allowing business
continuity to be the best it could be.
Our approach to risk management
Identifying and effectively managing risks is essential to the
achievement of the Group's strategic priorities. The Group's
Business Model is described on page 12 and our Strategic Priorities
on page 24.
The Board is responsible for the Group's integrated risk and
assurance framework, ensuring that the Group risk process and
systems of internal control are robust and continuously monitored.
The Board provides direction and sets the tone on the importance of
risk management. The Board has delegated responsibility for the
monitoring and review of the effectiveness of the Group's risk and
assurance framework to the Audit Committee. The risk process is
agreed annually with the Audit Committee.
The Group aims to embed risk management within its existing
business processes. Each operating business undertakes a thorough
risk assessment alongside the annual strategic planning process. A
broad range of risks is considered including strategic, financial,
operational, environmental and other external risks. Once the key
risks have been identified further mitigating actions are
considered, where appropriate, and a risk owner assigned. The risk
registers are regularly reviewed by each operating business and are
aggregated for review by Divisional Management and the Group.
As well as reviewing the risk registers prepared by the
operating businesses, a risk assessment is conducted by the
Executive Committee twice a year in conjunction with strategic
discussions to ensure that risk and strategy are aligned. This
review also considers emerging risks. These are risks which may
develop but have a greater uncertainty attached to them in terms of
likelihood, timing and velocity.
Emerging risks are identified by holding workshops and through
input from external sources. All identified risks are evaluated
against our purpose, strategy and values to understand their
likelihood and impact of occurrence. Once the principal risks have
been identified, mitigating controls and relevant policies are
documented and additional mitigating actions are developed where
appropriate. An owner is assigned to each action. The principal
risks are discussed at each Executive Committee meeting. Every
principal risk is assessed for our financial viability scenarios,
to see if they could have a material financial impact, either on
their own or if they materialised together.
Twice in 2020, the Board performed a robust assessment of the
principal risks, together with the emerging risks.
The Board assesses outputs from the integrated risk and
assurance framework and takes comfort from the "three lines of
defence" risk assurance model. The first line represents
operational management who own and manage risk on a day-to-day
basis, utilising effective internal controls. The Group Executive
Committee and Divisional Management monitor and oversee these
activities, representing governance and compliance at the second
line. The third line is the independent assurance over these
activities provided by internal and other external assurance.
The key elements of the Senior risk management process are [set
out below]:
1. Identify risks - The risks to the achievement of the Group's
strategic priorities are identified from a top down and
bottom up perspective. Existing and emerging risks are
considered.
2. Evaluate gross (inherent) risks - The gross level of risk,
considering impact and likelihood, to the achievement
of the strategic priorities is assessed.
3. Identify existing controls and processes - The existing
controls and processes which mitigate the risks are identified
and assessed for adequacy.
4. Risk response planning - Based on the controls and processes
already in place the net risk from an impact and likelihood
perspective is evaluated. Where the net risk is considered
to be higher than the Group's tolerance level for that
risk, additional mitigating actions are identified and
owners assigned.
5. Monitor and assure - The most significant risks are regularly
reviewed. Second line assurance and internal audit activity
is conducted to assess whether key controls are effective
and risks mitigated to an acceptable level. Timely implementation
of resulting actions is monitored.
6. Risk reporting and review - The status of the most significant
risks, top down and bottom up, are regularly reviewed
to ensure any changes to the risk profile are captured
and acted upon. The consolidated risk, assurance and control
position is reported to the Audit Committee and the Board.
Key areas of focus in 2020
Effective integrated risk and assurance framework
We continued to seek improvement to our risk management
processes by commencing risk assessments on a functional basis. In
2020, this included a detailed fraud risk assessment and
development of an Information Security/IT risk assessment to be
rolled out in early 2021.
COVID-19
The Group's organisation and culture enabled us to respond and
adapt quickly to the restrictions imposed by the COVID-19 pandemic.
The Group's Incident Response Plan was initiated in March 2020 and
the Group Coronavirus Oversight Committee was established. The aim
of this Committee is to ensure that we are consistently providing
the right guidance and taking the right actions to safeguard our
employees and other stakeholders. The Committee is chaired by our
Group Chief Executive Officer, supported by the Group HSE &
Sustainability Director, the Group HR Director and Divisional
CEOs.
To meet the increased pace of decision-making the Board
increased the frequency of its meetings to oversee and support the
Executive team which also met more frequently, with virtual
meetings being implemented from the start of the pandemic.
We have continued to execute our internal audit programme by
performing virtual audits. Eleven of our operating businesses were
audited, representing 80% of the original plan for 2020. The audit
scope included financial, IT, HR and other operational controls.
One audit was conducted on-site with the other 10 being virtual. We
also conducted short assurance reviews across the Group on controls
potentially impacted by COVID-19, such as segregation of duties and
delegation of authority. Other impacts of COVID-19 are discussed
against the individual principal risks.
Cyber/Information Security
Improving the resilience of our IT systems to cyber-attack has
been a focus in 2020. As a result of COVID-19, the way many of our
operating businesses work has changed.
A significant number of employees have worked from home at some
point in 2020 and many continue to do so. In this environment, the
work that is ongoing to improve our cyber/information security is
even more important. We have raised the level of monitoring for
phishing attempts and other security threats and continue to raise
the awareness of our employees to these risks.
Principal Group risks
During 2020 an assessment of the principal risks and
uncertainties, including emerging risks, that could threaten the
Group's business model or achievement of the strategic priorities
has been performed. Following this review, there have been no
changes to the Group's principal risks since our 2020 Interim
Statement.
The principal potential risks and uncertainties, together with
actions that are being taken to mitigate each risk, are [set out
below together with the references for each of the Group strategic
priorities and Key Performance Indicators]:
Group's strategic priorities: Key Performance Indicators:
1 Enhance Senior's autonomous A Organic Revenue Growth
and collaborative business
model
---------------------------------- -----------------------------------
2 Focus on Growth B Return on Revenue Margin
---------------------------------- -----------------------------------
3 Introduced a high performance C Adjusted Earnings per Share
operating system
---------------------------------- -----------------------------------
4 Competitive cost country strategy D Net Cash from Operating Activities
---------------------------------- -----------------------------------
5 Considered and effective capital E Return on Capital Employed
deployment
---------------------------------- -----------------------------------
6 Talent and development F Carbon Dioxide Emissions
---------------------------------- -----------------------------------
G Lost Time Injury Illness Rate
---------------------------------- -----------------------------------
Principal Risk How we manage it Focus in 2020
Pandemic - Increased Risk - 2, 3. A, B, C, D, E.
A global pandemic, This risk has materialised
such as the * The Group has an Incident Response Plan and this is in 2020 having a significant
current being used to manage the current pandemic. impact on the Group.
COVID-19 pandemic To meet the increased
could pace of decision-making
have a significant * Emerging threats are monitored and advice provided to the Board increased
impact on business employees as appropriate. This may include travel the frequency of its
operations restrictions and temporary site closures and meetings to oversee
affecting additional safety measures when at work. and support the Executive
our employees, our team which also met
supply chain and more frequently, with
ultimately * Where a pandemic threat does emerge we liaise with virtual meetings being
our ability to our suppliers and customers to manage the situation implemented from the
meet to the greatest extent possible. start of the pandemic.
customer Focus has been on ensuring:
requirements. * the health and safety of our employees. The Group's
There is also the Coronavirus Oversight Committee was established in
potential March 2020 and has met multiple times a month
for a pandemic to throughout the remainder of the year. In addition to
create ensuring that all local restrictions and regulations
a global slowdown are observed, focus has been on ensuring that, when
in employees return to work, all appropriate safety
demand impacting measures are in place;
our
end markets.
An adverse * business continuity through the measures above and
indirect ensuring that the business is able to meet its
consequence may financial commitments and emerge from the pandemic
result strongly. Further details are provided against other
from our customers principal risks as appropriate;
having to reduce
production
rates even where * ongoing communications with suppliers and customers
our as we realigned our business to the new ways of
supply chain and working and reduced demand.
production
remains intact.
The above measures have
allowed business continuity
to be the very best
it could be.
------------------------------------------------------------ -------------------------------------------------------------
Strategy and portfolio management - Increased Risk - 1, 2, 3,
4, 5. B, D, E.
An inability to COVID-19 has impacted
implement * The Group regularly reviews its portfolio to ensure the Group's strategy
the Group's that long-term value is being generated for in 2020. The Group has
strategy shareholders. Where appropriate, divestments will be focused on:
and/or effectively considered. * the Group's Prune To Grow strategy with the transfer
manage the Group's of our Netherlands Aerospace business contracts to
portfolio could our French operating business and the closure of our
have * Mergers & Acquisitions (M&A) opportunities continue Flexonics business in Malaysia;
a significant to be evaluated and discussed at the Board's
impact strategic review. Processes are in place to ensure
on the Group's that the Group is aware of emerging acquisition * liquidity and cash preservation;
ability opportunities.
to generate
long-term * continued investment in new technology and product
value for * The Group has a well-established acquisition development in the areas of fluid conveyance, thermal
shareholders. framework that includes proven valuation, due management and additive manufacturing which will help
diligence and integration processes. us to emerge strongly as recovery from the pandemic
occurs;
* Post-acquisition reviews are conducted as
appropriate. * the Group restructuring programme.
------------------------------------------------------------ -------------------------------------------------------------
Corporate governance breach - Risk unchanged - 1, 2, 3. A, B,
C.
Corporate
governance * The Group has well-established governance policies * In 2020 the annual Code of Conduct training was
legislation (such and procedures in all key areas, including a Group rolled out to all employees. Completion has been more
as Code of Conduct, anti-bribery procedures, a Health & challenging in 2020 for those employees without
the UK Bribery Act Safety Charter, an Agent's Policy and various access to a laptop/PC. However, more than 94% of
and the US Foreign policies and procedures over the review and reporting employees have completed the training.
Corrupt Practices of risk management and internal control activities.
Act),
regulations and * Training has also been rolled out to around 80% of
guidance * Governance updates are provided to the Board and the the employees on Global Trade Compliance.
(such as the UK Executive Committee at appropriate intervals, and to
Corporate key operational management.
Governance Code * Updates have been issued to various Group policies.
and
global health and * All employees are required to complete annual Code of
safety Conduct training. * Despite COVID-19 related challenges, the Group's 2020
regulations) are internal audit programme was completed providing a
increasingly level of assurance that the Group's Code of Conduct,
complex and * All EU sites have received training on the General policies and procedures are being followed.
onerous. Data Protection Regulations and employees in other
A serious breach locations have received training as appropriate to
of their roles.
these rules and
regulations
could have a * There has been increased focus on trade compliance at
significant our US sites.
impact on the
Group's
reputation, lead
to
a loss of
confidence
on the part of
investors,
customers or other
stakeholders and
ultimately
have a material
adverse
impact on the
Group's
enterprise value.
------------------------------------------------------------ -------------------------------------------------------------
Programme and supplier management - Risk unchanged - 1, 2, 3,
5, 6. A, B, D, E.
The ability to After several years
introduce * The Group is experienced in bidding and launching new of increasing demand
new products in products. Formal New Product Introduction (NPI) on new platforms there
line processes, such as Advanced Product Quality Planning was a sudden and significant
with customer (APQP), are used in some parts of the Group and are drop in demand at the
requirements being rolled out. end of Q1 2020 due to
and to respond the COVID-19 pandemic.
appropriately Focus has been on:
to increases or * There is a Group Contract Review policy which is * working with our customers to ensure that, wherever
decreases mandatory for all operating businesses. possible, orders within firm windows can be
in demand delivered;
thereafter
is key to * NPI programmes are subject to regular review by
achieving divisional and Group management to ensure that * working with our suppliers and managing inventory to
the Group's schedule, cost or quality issues are identified and protect cash with a focus on rescheduling incoming
strategic dealt with promptly. materials and ensuring works orders are only launched
objectives. where there is a firm order;
There is a risk
that * The Group monitors market and customer data so that
the Group and/or we can be prepared to respond to changing market * flexing the work force to reflect current reduced
its dynamics. demand but retaining the ability to meet increased
supply chain is demand in the future;
unable
to respond quickly * The resilience of the supply chain is monitored and,
enough to changes where possible, over-reliance on individual suppliers * responding to the large number of new requests for
in is reduced. quotation;
demand potentially
resulting in
excess * The Group regularly monitors the resource required to * redeploying capital equipment to better utilise it
inventory and/or deliver customer demand. within the Group.
an
inability to meet
schedule,
quality and cost
requirements
resulting in
delay,
cost overruns or
asset
write-downs.
Suppliers may be
unable
or unwilling to
respond
to increases or
decreases
in demand
impacting
on our ability to
supply
our customers
and/or
our ability to
optimise
inventory
holdings.
In extreme cases
some
suppliers may face
financial
difficulties
and go out of
business.
------------------------------------------------------------ -------------------------------------------------------------
Boeing 737 MAX - Decreased risk - 2, 5. A, C, E.
In April 2019, In 2020, the restructuring
following * We continue to stay close to Boeing and our other 737 programme which commenced
two fatal MAX customers to ensure that we are kept informed of when the 737 MAX was
accidents, developments. grounded continued and
the 737 MAX was was expanded as a result
grounded. of COVID-19. The Group
737 MAX is a * Restructuring is occurring at sites engaged on the continues to work closely
significant 737 MAX programme to align direct headcount with with 737 MAX customers
programme with 13 demand. Overhead cost reductions are also being to ensure that we are
operating implemented where possible. aware of likely future
businesses demand and are ready
supplying to increase production
to multiple 737 MAX * Opportunities to increase content on the 737 MAX when the need arises.
customers. programme may arise and we will support our customers
On 18 November where possible.
2020,
the U.S. Federal
Aviation
Administration
lifted
its ban on the 737
MAX paving the way
for the aircraft to
resume flying.
Other
authorities have
followed.
------------------------------------------------------------ -------------------------------------------------------------
Economic and geopolitical impact - Increased risk - 2, 3, 4,
5. A, B, C, D, E
There is a risk The COVID-19 pandemic
that * The Board ensures that it is kept informed of US has caused a global
there will be a trade developments and Brexit so that it can assess economic downturn, which
global the impact on the Group and take action as has impacted the sectors
economic downturn appropriate. within which we operate.
impacting During 2020, the Group
on some or all of has focused on managing
the * The Group has a Brexit Committee which has undertaken the impact of this risk
sectors within detailed reviews to identify our exposure to the UK's by:
which decision to leave the EU including from a regulatory, * focusing on cash preservation, undertaking additional
the Group operates. supply chain, people and financial perspective. restructuring activities and agreeing covenant
Trade relations, relaxations with the Group's lenders, as described in
for the risk below.
example hardening * In a limited number of cases we are undertaking some
of contingency planning to minimise any potential
tariffs in the US, operational disruption. The Group Brexit committee
the UK leaving the continues to assess
EU and other likely the impact of Brexit
geopolitical events * The Group monitors potential changes to international on the Group and assess
have created tax regulations and tariffs to understand the likely that the steps it took
uncertainty impact. to prepare for the transition
over the future have been adequate.
impact These have included:
on international * Preparations for changes to VAT and Customs
trade processes.
and the ability to
retain and recruit
foreign nationals. * Supply chain measures around the 1 January 2021 end
of transition date to advance a limited amount of
customer sales and build short-term inventory buffer
stock.
* Continuous review of the appropriateness of planning
measures taken for people, regulatory and other
measures.
------------------------------------------------------------ -------------------------------------------------------------
Financing and liquidity - Increased risk - 2, 3, 5. D, E.
The Group could The impact of COVID-19
have * The Group's overall treasury risk management on the Group has necessitated
insufficient programme focuses on the unpredictability of significant focus on
financial financial markets, and seeks to minimise potential this risk during 2020.
resources to fund adverse effects on the Group's financial performance. Actions taken include:
its * working with the Group's lenders, both banks and US
growth strategy or private placement investors, to agree appropriate
meet its financial * Compliance with financial policies and exposure covenant relaxations in relation to the June 2020,
obligations as they limits are reviewed by the Group's Treasury Committee December 2020, June 2021 and December 2021 testing
fall due or on a regular basis. periods as well as an additional September 2021
insufficient testing period to provide financial flexibility for
liquidity to meet the Group;
financing * The Group enters into forward foreign exchange
covenants. contracts to hedge the exchange risk arising on
Foreign exchange operations' trading activities in foreign currencies; * focus on cash preservation; no Senior plc dividends
movements however, it does not enter into or trade financial were paid in 2020, capital expenditure was reduced,
could have a instruments, including derivative financial there was an exercise to optimise working capital
material instruments, for speculative purposes. (especially inventory);
impact on the
Group's
financial * The Group's Treasury policy is updated and approved * Management moved from quarterly to monthly business
performance, by the Board regularly. reviews and tightened some delegated authorities;
both on the balance
sheet (translation
risk) and income * The Group's viability assessment process considers a * launching an initiative to reduce the levels of
statement base case and risk case scenario, which considers the inventory across the Group. Actions include working
(transaction risk). principal risks and uncertainties. with suppliers to renegotiate raw material deliveries,
ensuring that work only commences where there is
clear sight of customer demand and ensuring that,
wherever possible, customers accept shipments in the
firm window.
* Extensive scenario testing has been undertaken for
2020 and 2021 based on a variety of end market
assumptions, while taking account of appropriate cost
reduction and cash preservation mitigating actions.
* Updating the Group's Treasury Policy which was
approved by the Board in December 2020.
------------------------------------------------------------ -------------------------------------------------------------
Cyber/information security - Increased risk - 1, 3. B.
The risk that the Many of our employees
Group * The Group has a roadmap to achieving improved worked from home during
is subjected to Information Security. 2020 and some continue
external to do so. Measures were
threats from taken to ensure that
hackers * The Group has security controls in place including our Group IT and Information
or viruses policies, standards and playbooks. Security Policies continued
potentially to be followed despite
causing critical or the change to working
sensitive data to * Each operating business has a security champion to practices. This included
be assist in raising employee awareness to this risk. conducting a short audit
lost, corrupted, across all operating
made businesses to check
inaccessible, or * Employees receive awareness training on cyber-related compliance. The roll
accessed issues. out of the Group's endpoint
by unauthorised detection and response
users, tool set has provided
resulting in additional monitoring
financial of the environment.
and/or reputational 2020 saw an increase
loss. in phishing attempts
as criminals sought
to benefit from COVID-19
related changes to the
way people work across
the globe. Further progress
has been made in 2020
in implementing the
Group's Information
Security roadmap. This
included:
* establishing a third party managed security service
provider and rolling out additional security tools;
* requiring all employees to complete on-line
cyber/information security training;
* running a campaign of cyber newsletters and posters
to alert employees to cyber threats;
* alerting IT teams across the Group to near misses and
incidents so that they are aware of immediate
threats.
------------------------------------------------------------ -------------------------------------------------------------
Innovation and technological change - Risk unchanged - 1, 2,
5. A, B, C, E, F.
In order to Despite the downturn
continue * The Group has a technology forum which meets in business in 2020,
to win new business regularly to discuss innovation and technological the Group has continued
and achieve change. to invest in new technologies
profitable with progress being
growth the Group made on a number of
must * The Group has established an Advanced Additive key projects:
innovate. There is Manufacturing Centre and is conducting qualification * the further development of metal additive products at
a risk that the testing with a launch customer prior to entry into our Advance Additive Manufacturing Centre in Burbank,
Group service. USA. The Group plans to take advantage of rapid
does not continue product development, weight savings and cost
to reductions that can be achieved by re-engineering
innovate and * The Group is a member of the Advanced Manufacturing some of its traditional products using additive
implement Research Centre, Sheffield, UK, which focuses on processes. Having qualified the Additive Equipment to
technological advanced machining and materials research. OEM/Industry specifications we now have product
change undergoing qualification testing for flight approval;
resulting in its
technology * The Group continues to develop products to support
becoming the move to electrification. * the ramp up of serial production of our Commercial
uncompetitive Electric Vehicle battery cooler. This first
or obsolete. generation patent pending ultra-thin design has met
New technologies * Global Marketing Teams are engaged to ensure that all high performance customer goals in this
may customer requirements and priorities are considered. technically demanding environment.
have an impact on
the
Group's markets, * The Group continues to invest in machining
e.g. technologies to improve process efficiency and reduce
electric vehicles. cost.
* The Senior Operating System continues to deliver best
practice tools for innovation and product development
across the Group.
------------------------------------------------------------ -------------------------------------------------------------
Customer demand and price-down pressures - Risk unchanged -
1, 3, 4, 5. A, B, E.
Customer pricing Demand and price down
pressure * The Group works closely with its customers to find pressures have continued
is an ongoing innovative ways to produce products at a lower cost, in 2020. Focus has been
challenge thus helping them to meet pricing challenges. on:
within our * working with customers to ensure that, wherever
industries, possible, orders within firm windows can be
driven by the * The Group is able to consider bundles of products delivered;
expectations that in total help achieve customer pricing
of airlines, land challenges.
vehicle * in some cases, realigning pricing with reduced
operators and volumes;
governments * Where appropriate, the Group will actively pass work
seeking to purchase to some of its cost competitive facilities such as
more competitively Mexico, Thailand, the Czech Republic, South Africa, * the Group restructuring programme which is underway
priced products in India, China and Malaysia with a view to helping with the aim of aligning direct headcount with demand,
the future. This satisfy customer challenges. whilst retaining the ability to meet increased demand
may in the future, and identifying overhead reductions
put some pressure through efficiency improvements;
on * A project is underway in the Aerospace Division to
the Group's future optimise the use of our machine tools to support the
operating margins. need for competitively priced products. * pursuing new opportunities with existing and new
COVID-19 has customers providing some market diversification.
created
severe end market
disruption
and there is a risk
that customers do
not
honour firm order
schedules,
or in extreme
cases,
go out of business.
------------------------------------------------------------ -------------------------------------------------------------
Climate change - Risk unchanged - E, 2, 5. B, F, G.
There is a risk In 2020 the Group delivered
that * In 2015 Senior launched our 20/20 vision for on the 20/20 ESG vision
climate change sustainability which included targets for reducing launched in 2015, achieving
and/or carbon emissions and water consumption. all of our targets.
the measures taken During 2020, the Group's
to address it may carbon emission reduction
have * To mitigate the impact of catastrophic events, such targets were verified
an adverse impact as an extreme weather event, each site has a by the Science Based
on scenario-based Business Continuity Plan which is target Initiative ("SBTi").
the Group. Climate tested on an annual basis. The Group also has Senior maintained a
change may result insurance which helps to protect profits in such "leadership" rating
in situations. of A- in 2020 from the
extreme weather globally recognised
events CDP.
that may impact on * The Group continues to invest in and develop For further details
our ability, or solutions relevant to changing end markets. Examples on ESG please see pages
that include our battery cooling, waste heat recovery, 14 to 23 [of the 2020
of a supplier, to heat sink in hybrid cars technologies, and additive Annual Report].
meet manufacturing solutions for aerospace. The Group is considering
our customers' appropriate climate
requirements. scenarios for risk analysis
Our customers' under TCFD.
products
may evolve
requiring
new technology, for
example,
electrification.
This also presents
an opportunity to
the
Group to be
involved
in replacement
technologies.
Increasing
legislation
aimed at
accelerating
decarbonisation may
increase our
operating
costs. It may also
change consumer
behaviours
impacting on our
end
markets. For
example,
consumers may fly
less
often.
------------------------------------------------------------ -------------------------------------------------------------
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACSSFIFAFEFSEFD
(END) Dow Jones Newswires
March 11, 2021 13:18 ET (18:18 GMT)
Senior (LSE:SNR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Senior (LSE:SNR)
Historical Stock Chart
From Jul 2023 to Jul 2024
