Last checked at 14 Jan 2022 07:00
14 January 2022
Senior plc: FY21 Post-close 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 power & energy markets, today issues this trading update for the year ended 31 December 2021 (the "Period").
Key Points
● | Full year trading in line with expectations |
● | Positive net cash flow of around £58m |
● | Net debt (excluding capitalised leases) of £80m modestly better than expectations |
● | Improved profitability from restructuring and cost reductions |
● | Overall, recovery underway in core markets including civil aerospace |
Trading update
For the full year 2021, subject to audit, Group revenue is likely to be around £659m, with both Aerospace and Flexonics Divisions in line with management's expectations. The Group anticipates the adjusted loss before tax(1) will also be in line with management's expectations.
In our Aerospace Division, when compared to the prior year, part of which was pre-COVID and included Senior Aerospace Connecticut for the full year, 2021 revenue is expected to be around 12% lower on a constant currency basis. In Flexonics, revenue is expected to grow around 10% compared to the prior year, on a constant currency basis. The decisive actions we took on restructuring and other costs have resulted in improved profitability in both divisions compared to the prior year.
As previously discussed, overall, we are seeing recovery underway in our core markets including civil aerospace and anticipate that continuing in 2022 and beyond. While the impact of the pandemic and industry wide supply chain constraints are still with us, we continue to manage these diligently. We will provide further detail at our full year results presentation.
Cash generation and financial position
The Group generated strong net cash inflow of around £58m in 2021. After accounting for lease payments and currency movements, net debt at the end of December 2021 is expected to be around £80m (excluding capitalised leases of £73m), a reduction of £49m from December 2020.
Notes
All full year 2021 figures are subject to audit.
(1) Adjusted loss before tax is before amortisation of intangible assets from acquisitions, goodwill impairment and write-off, net restructuring costs and corporate undertakings.
Further information
Bindi Foyle | Group Finance Director, Senior plc | +44 (0) 1923 714 725 |
Gulshen Patel | Director of Investor Relations, Senior plc | +44 (0) 1923 714 722 |
Richard Webster-Smith | Finsbury Glover Hering | +44 (0) 7796 708 551 |
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 producers 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.