Last checked at 29 Jun 2009 07:00
Senior plc
Pre-Close Period Statement
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 six-month period to 30 June 2009.
Trading
Overall, the Group continues to trade satisfactorily, with profitability in line with the Board's expectations for the first half of 2009. Cash generation has been strong and, combined with currency benefits, has resulted in the level of net debt reducing significantly more than expected during the six-month period.
Markets and Operations
The second quarter of 2009 saw the Group's markets remaining largely unchanged from the conditions experienced in the first quarter, as described in the Interim Management Statement ("IMS") issued on 22 April 2009. The most notable exceptions were an ongoing modest improvement in production of land vehicles outside of North America and a further weakening of the business jet market. The bankruptcy of General Motors and Chrysler in the period had little effect on the Group.
Boeing and Airbus still have seven-year order books but reported a combined net order in-take of only 21 aircraft (97 orders less 76 cancellations) for the first five months of the year. Subsequently, at the Paris Airshow, Airbus announced commitments (firm orders and memorandum of understanding agreements) for a further 127 aircraft. Boeing recently identified the need to make a minor modification to the 787 aircraft which has delayed its first flight. However, Boeing does not currently expect the modification to impact the rate of production. Importantly for Senior, the US Government recently announced that the Joint Strike Fighter remains a high priority future military programme.
Further to the measures detailed in the IMS in April, the Group's headcount was 4,795 at the end of May, a 19% reduction from the 5,936 at the end of September 2008, reflecting the decisive action taken in light of the weak land vehicle and business jet markets. Overall, no significant changes in headcount are expected for the remainder of the year.
Outlook
Senior is strongly cash generative and financed for the longer-term. Whilst the Group's end markets are expected to remain challenging for the foreseeable future, Senior is gaining market share, through excellent operational performance and its comparative financial strength, and can look forward to significant future organic growth from new aircraft programmes such as Boeing 787 and Joint Strike Fighter. Consequently, the long-term prospects for the Group remain encouraging.
The results for the six-month period to 30 June 2009 will be announced on Monday 3 August 2009.
Further information
| Mark Rollins | Group Chief Executive, Senior plc | +44 (0) 1923 714 738 |
| Simon Nicholls | Group Finance Director, Senior plc | +44 (0) 1923 714 722 |
| Clare Strange | Finsbury Group | +44 (0) 20 7251 3801 |
About Senior
Senior is an international manufacturing group with operations in 11 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.