Senior PLC Trading Statement (9998M)
20 October 2016 - 5:00PM
UK Regulatory
TIDMSNR
RNS Number : 9998M
Senior PLC
20 October 2016
Trading 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 energy
markets, issues this trading update for the nine months ended 30
September 2016.
Group Performance for the Nine Months ended 30 September
2016
Group revenue for the nine months ended 30 September 2016
increased by 7% to GBP682.2m (2015: GBP638.0m). This included a
favourable exchange rate impact of GBP48.0m and a beneficial
incremental impact from acquisitions of GBP26.1m. Underlying Group
revenue from organic operations was down 4% on a constant currency
basis as growth from the Aerospace Division (up 2%) was offset by
lower Flexonics revenue (down 18%) due to weaker truck and
off-highway, and oil and gas markets.
Adjusted profit before tax(1) decreased by 18% to GBP58.5m
(2015: GBP71.6m).
Net debt at the end of September was GBP222.7m, as expected this
was higher than at the end of June due to an anticipated increase
in working capital, continued investment in capital expenditure in
support of organic growth, as well as adverse currency impacts.
Third Quarter Performance: Markets & Divisions
In the Aerospace Division, activity in the large commercial
aircraft and regional jet markets increased with the ramp-up in
production of the A320neo, A350 and CSeries, albeit as we
progressed through the third quarter, as widely reported, the
increase was slower than previously anticipated. Activity in the
business jet market continued to decline.
As previously reported, bid activity for new business remains
high and important wins were secured in the third quarter for our
Structures business on the 777X and A320neo; however, the
performance of the Aerospace Division in the third quarter was
below expectations due to slower than anticipated ramp-up of new
production programmes. The Division's performance has also been
impacted by certain supplier issues which have impacted some of our
US and UK operations. These issues are currently being addressed
and are largely expected to be resolved by the end of the year.
Further, the Division has also been affected by some programme
specific price increase discussions not yet concluding and
discussions are continuing with customers to bring these to
resolution.
Activity in the Flexonics Division continued to reflect the
challenging market conditions in truck and off-highway and oil and
gas markets. In particular, activity and the outlook for North
American heavy truck production worsened in the third quarter,
resulting in a further deterioration in the Division's performance.
The Flexonics Division continues to focus on short-term cost
management actions and good progress has been made in the third
quarter with projects to transfer production to new facilities in
cost competitive countries.
Outlook
Whilst the Board anticipates some improvement in the fourth
quarter over the third quarter, the Group's performance for the
full year 2016 is expected to be lower than previously
anticipated.
Looking further ahead, the Group remains well positioned for the
future with Aerospace production programmes continuing to ramp-up
and many new business opportunities in discussion with key
customers. In Flexonics, despite the challenging conditions, we
have continued to secure positions on new programmes and platforms,
and therefore are well positioned to resume growth when markets
recover.
The 2016 full year results will be announced on Monday 27
February 2017.
Conference Call
There will be a call for investors and analysts at 8.30am BST
today. The dial-in details are as follows:
International access number: +44 (0)20 3003 2666
UK toll free number: 0808 109 0700
Password: Senior
Notes
(1) Adjusted profit before tax is before amortisation
of intangible assets arising on acquisitions,
acquisition costs and profit or loss on sale
and write-down of fixed assets.
Further information
Group Finance Director, +44 (0) 1923 714
Derek Harding Senior plc 722
Director of Investor
Relations & Corporate
Communications, Senior +44 (0) 1923 714
Bindi Foyle plc 725
+44 (0) 20 7251
Philip Walters Finsbury 3801
About Senior
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 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 company news service from the London Stock Exchange
END
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