Senior PLC - Trading Update and Chairman-Designate appointment
Trading Update and Appointment of Chairman-Designate
Trading and Markets
Trading in the Period has been in line with expectations.
In the Aerospace Division, revenue increased as anticipated, driven by the production ramp up on the newer programmes such as the 737 MAX, A320neo, A350 and C Series. This was partly offset, as predicted, by reduced volumes on mature programmes such as 777, 747, A380 and the current engine versions of the 737 and A320 as well as the business jet and military sectors. The Group continued to make good progress increasing shipset content as additional contracts were secured on the key large commercial aerospace platforms. For example, we have announced today a new long-term supply contract award to Senior Aerospace STEICO, from Boeing for fluid systems products across multiple platforms.
Trading in the Flexonics Division was also as expected, including the ramp up of new off-highway programmes. We are seeing some improved activity in North American heavy-duty truck and upstream oil and gas markets, while downstream oil and gas activity, as predicted, remains subdued.
Group margins in the Period were as expected, with Aerospace Division improvements resulting from increasing revenues and operational improvements as we continue our cost reduction focus, particularly on our newer programmes.
As previously announced, the Group was in the process of closing its Aerospace BWT Ilkeston site which was due to be completed by the end of 2017. We are pleased however, to confirm that during the Period, this site was sold for
As a result of the sale of the Ilkeston site, Senior will not now incur the full site closure costs. Consequently, Aerospace performance is anticipated to be slightly ahead of previous expectations.
In Flexonics, some signs of recovery are evident in our end markets and therefore we continue to believe that the end of 2017 will be an inflexion point for our truck and off-highway and upstream oil and gas facing businesses. As previously indicated, we continue to believe that Flexonics performance will be marginally lower in 2017 compared to 2016.
The Board therefore expects the Group's 2017 full year adjusted profit before tax(1) to be slightly ahead of previous expectations, at current exchange rates.
Looking further ahead, Senior expects to make progress from 2018 onwards as Aerospace production programmes ramp up and Flexonics markets recover.
The 2017 full year results will be announced on Monday
Appointment of Chairman-Designate
Senior is pleased to announce the appointment of
Ian will join the Board as a non-executive Director on
No further information is required to be disclosed pursuant to Listing Rule 9.6.13R.
There will be a call for investors and analysts at
International access number: +44 (0)20 3003 2666
(1) Adjusted profit before tax is before loss on disposal of business and amortisation of intangible assets arising on acquisitions.
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Group Chief Executive,
+44 (0) 1923 714 738
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Group Finance Director,
+44 (0) 1923 714 725
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+44 (0) 20 7251 3801
Senior is an international manufacturing group with operations in 14 countries. It is listed on the main market of the
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
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