Senior moment: To lose two parents may look like carelessness, but losing two important Executives need not be a sign of corporate inattention. David Squires’ impending move from Cobham to run rival industrial group Senior comes barely a year after Cobham knew it was losing Richard Tyson to TT Electronics. But on each occasion ChiefExecutive Bob Murphy made a point of issuing a gracious farewell. Indeed, there is some reciprocity between Cobham and Senior: Simon Nicholls, Cobham’s finance Director, joined the board in May last year, having fulfilled the same role at the rival group. Also critical will be Mr Squires’ experience running restructuring programmes: these are on course to generate £85 million in savings for Cobham by 2019. In theory, the smaller businesses that make up Senior should be susceptible to rationalisation. In practice, agreements and clearances related to individual companies within the group may make this more difficult than a management consultancy case study would suggest. Harder still will be finding new streams of revenue to make up for the shrinking military budgets that make this rationalisation necessary.
22 Oct '14
Negatives were that European and Brazilian industrial markets remained subdued and demand for agricultural and construction equipment markets began to slow towards the end of the period. The company continues to search for a CEO to replace incumbent Mark Rollins, who in August announced his plans to retire before June 2015. Analysts at broker Investec said they did not expect to change forecasts on the back of the statement. "The company remains operationally and financially strong but a lack of near-term catalysts, a change of CEO and broadly tougher end markets mean that we see relatively limited share price upside."
22 Oct '14
As it continues to search for a new chief executive, engineer Senior said full year profits were likely to hit forecasts after no surprises from trading in the third quarter. The FTSE 250-listed group added that barring any exceptional moves in currency rates it expected to make "solid" progress in 2015 and beyond due to the healthy growth in the commercial aerospace sector. Senior, which also works with clients in the defence, automotive and energy sectors, said net debt was slightly higher at the end of September than anticipated due to currency impacts. Broker Liberum left its full year debt estimate of £98m unchanged after speaking with management. In the three months to the end of September, the aerospace division, which accounts for two thirds of first-half group sales, maintained revenues at a "healthy" level, as large commercial customers Airbus and Boeing increased aircraft deliveries 5% in the first nine months of 2014 compared to the same period last year, and have a combined net order intake of 1,791. "The resultant order books, nearly nine years at current build rates, continue to provide a very strong foundation for future growth," Senior said. The Flexonics arm had an encouraging quarter thanks to healthy demand from the North American heavy-duty diesel engine market, a European automotive market that is improving from a very low base and a strong performance from the newly acquired Upeca oil and gas business in Asia
7 Sep '14
More good news
Ryanair due to announce a massive B737 order tomorrow. Should be a good boost for SNR.
22 Jul '14
Never listen to brokers
Brokers are notoriously unreliable. They will give their opinion together with a target price. More often than not this target price is not reached and is soon replaced by a downgrade with no explanation. So take broker's words with a large pinch of salt. I still expect SNR to perform very well long term but I still envisage short term currency issues to hit profits slightly. Good luck and long term you should be fine.
22 Jul '14
topped up again topped up 268.1523p brokers are in grading at buy buy buy buy
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