Senior PLC Tax and Trading Update (4218B)
10 January 2018 - 6:00PM
UK Regulatory
TIDMSNR
RNS Number : 4218B
Senior PLC
10 January 2018
Tax and Trading Update
Senior plc ("Senior" or "the Group"), an international
manufacturer of high technology components and systems, principally
for the worldwide aerospace, defence, land vehicles and energy
markets, issues this tax and trading update for the year ended 31
December 2017 (the "Period").
Impact of new US tax legislation
Senior notes the Tax Cuts and Jobs Act ("US Tax Reform") enacted
on 22 December 2017, reducing the statutory rate of US Federal
corporate income tax to 21%. This is expected to give rise to an
exceptional non-cash tax credit for the Group in the year ended 31
December 2017 as a result of the revaluation of US net deferred tax
liabilities.
Over the medium term we anticipate the effect of the US Tax
Reform to be broadly neutral for the Group as the benefit from the
reduction in the US Federal corporate income tax rate is offset by
a widening of the tax base.
We will continue working through and reviewing the full impact
of these changes ensuing from a number of complex provisions in the
new legislation.
Trading update
Senior is pleased to report that trading in the Period has been
slightly ahead of previous expectations, driven by a good
performance in November and December.
In addition the Group will also benefit from a one-off reduction
in the effective tax rate for the year ended 31 December 2017.
Subject to audit, this is anticipated to result in an adjusted tax
rate of 17.5% for the Period which is 2.5 percentage points below
the Group's previous expectations. The effective tax rate for 2018
is expected to revert to previous normal levels.
The Board therefore expects the Group's 2017 adjusted earnings
per share(1) will also be proportionately ahead of previous
expectations.
The 2017 full year results will be announced on Monday 26
February 2018.
Notes
(1) Adjusted earnings per share is before amortisation of
intangible assets from acquisitions net of tax, loss on disposal
net of tax and exceptional tax items.
This announcement contains insider information.
Further information
Group Finance Director, +44 (0) 1923
Bindi Foyle Senior plc 714 725
Gulshen Director of Investor +44 (0) 1923
Patel Relations, Senior plc 714 722
+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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