Senior PLC Trading Update (5134G)
November 16 2022 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 5134G
Senior PLC
16 November 2022
Senior plc
Trading Update - Trading delivered in line with expectations,
full year outlook unchanged
Senior plc ("Senior", "Company" 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
trading update for the ten-month period ended October 2022 (the
"Period").
Key points
-- Trading performance delivered in line with expectations
-- Full year outlook unchanged from previous expectations,
with performance in second half of the year to be similar
to the first half
-- Order book remains strong, with book-to-bill ratio of 1.28
in the Period
-- UK RCF facility refinanced and extended maturity to November
2026
-- UK pension plan well-funded; no further Company contributions
required
Trading update
Senior delivered trading in the Period in line with management
expectations. Group revenue grew 19% year-on-year on a constant
currency basis, underpinned by resilient core markets and a healthy
order intake, with a book-to-bill ratio of 1.28.
Activity in the Aerospace Division benefitted from the
continuing recovery in civil aerospace, particularly in single
aisle and regional jet programmes. We are encouraged by the OEM's
recent positive narrative around build rates for both single aisle
and long-range programmes.
Trading in the Flexonics Division continued to benefit from
strong customer demand in the heavy truck and power & energy
markets.
The macroeconomic and geopolitical environment, supply chain and
inflationary challenges will persist into 2023 but these are being
managed diligently with our customers and suppliers.
Renewal of UK Revolving Credit Facility ("RCF")
The Group maintains a strong financial position and healthy
balance sheet. The majority of our drawn borrowing is at fixed
interest rates. In the period, we are pleased to have repaid the
USD $20m private placement loan that matured in October 2022 and
refinanced our main UK revolving credit facility at competitive
rates and extended the maturity to November 2026. In support of the
strong ESG commitments made by Senior and its lenders, we have
jointly agreed appropriate sustainability KPIs linked to the
RCF.
UK Pension Plan triennial valuation
The latest triennial actuarial valuation of the Senior plc
Pension Plan ("the UK Plan") has been completed. The valuation has
shown that the UK Plan is well-funded with an actuarial surplus.
The UK Plan's Trustee and the Group have agreed that there will be
no requirement for further contributions, which have amounted to
GBP5.5m per annum in recent years.
Outlook
Demand continues to benefit from the resilience of our core
markets, underpinning our confidence in maintaining the full year
outlook for 2022, in line with our previous expectations. We
continue to expect performance in the second half of the year to be
similar to the first half.
Our compelling strategy and positioning in attractive and
structurally resilient core markets, combined with our sector
leading sustainability credentials and highly relevant technical
capabilities, underpins our commitment to delivering a strong
recovery across our Aerospace and Flexonics Divisions. This
recovery drives the Group ROCE to a minimum of 13.5% over the
medium term, in line with our previously stated ambition.
Further information
Group Finance Director, Senior +44 (0) 1923 714
Bindi Foyle plc 725
Director of Investor Relations, +44 (0) 1923 714
Gulshen Patel Senior plc 722
+44 (0) 7796 708
Richard Webster-Smith FGS Global 551
About Senior
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 and manufactures high
technology components and systems for the principal original
equipment manufacturers 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.
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END
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