Last checked at 20 Apr 2017 07:00
Trading Update
Ahead of its Annual General Meeting on Friday 21 April, 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 period since 1 January 2017 (the "Period").
Trading in the Period has been in line with expectations.
Markets & Divisions
In the Aerospace Division, as anticipated, activity in large commercial aircraft, the Group's most important market, increased, offset by the expected decreases in regional, business jets and military. Production volumes on the newer programmes such as the A320neo and A350 continue to ramp up, while as predicted, volumes on mature programmes such as A320ceo, A380 and 777 reduced.
The Flexonics Division benefited from strong industrial aftermarket demand, however underlying market conditions in truck and industrial markets remain challenging. Per ACT Research, North American Class 8 truck production declined 20% in the first quarter of 2017 compared to first quarter of 2016.
Net debt increased, as expected, to £219.7m at the end of March 2017. This was due to the normal seasonal increase in working capital and continued planned investment in capital expenditure in support of organic growth.
Outlook
The Board's expectation for 2017 remains consistent with the position set out in the announcement of 27 February 2017. Whilst we expect the first half of the year to be impacted by the transition from more mature aerospace programmes to the new airframe and engine products, we anticipate improved Aerospace profit in the second half of the year, driven by increasing revenues and operational improvements as we continue our cost reduction focus, particularly on our newer programmes. In Flexonics, we continue to believe that late 2017 should be an inflexion point as truck and off-highway markets recover in 2018 and investment in industrial projects increases. Current trends still suggest Flexonics performance to be marginally lower in 2017 compared to 2016.
Looking further ahead, Senior expects to make progress from 2018 onwards as new Aerospace and Flexonics programmes and products enter production and the benefits of our operational improvement initiatives and cost saving actions are delivered.
The results for the six-month period to 30 June 2017 will be announced on Monday 31 July 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
Further information
Derek Harding | Group Finance Director, Senior plc | +44 (0) 1923 714 722 |
Bindi Foyle | Director of Investor Relations & Corporate Communications, Senior plc | +44 (0) 1923 714 725 |
Philip Walters | Finsbury | +44 (0) 20 7251 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.