Last checked at 16 Nov 2022 07:00
Senior plc
Trading Update - Trading delivered in line with expectations, full year outlook unchanged
Senior plc ("Senior", "Company" 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 ten-month period ended October 2022 (the "Period").
Key points
● | Trading performance delivered in line with expectations |
● | Full year outlook unchanged from previous expectations, with performance in second half of the year to be similar to the first half |
● | Order book remains strong, with book-to-bill ratio of 1.28 in the Period |
● | UK RCF facility refinanced and extended maturity to November 2026 |
● | UK pension plan well-funded; no further Company contributions required |
Trading update
Senior delivered trading in the Period in line with management expectations. Group revenue grew 19% year-on-year on a constant currency basis, underpinned by resilient core markets and a healthy order intake, with a book-to-bill ratio of 1.28.
Activity in the Aerospace Division benefitted from the continuing recovery in civil aerospace, particularly in single aisle and regional jet programmes. We are encouraged by the OEM's recent positive narrative around build rates for both single aisle and long-range programmes.
Trading in the Flexonics Division continued to benefit from strong customer demand in the heavy truck and power & energy markets.
The macroeconomic and geopolitical environment, supply chain and inflationary challenges will persist into 2023 but these are being managed diligently with our customers and suppliers.
Renewal of UK Revolving Credit Facility ("RCF")
The Group maintains a strong financial position and healthy balance sheet. The majority of our drawn borrowing is at fixed interest rates. In the period, we are pleased to have repaid the USD $20m private placement loan that matured in October 2022 and refinanced our main UK revolving credit facility at competitive rates and extended the maturity to November 2026. In support of the strong ESG commitments made by Senior and its lenders, we have jointly agreed appropriate sustainability KPIs linked to the RCF.
UK Pension Plan triennial valuation
The latest triennial actuarial valuation of the Senior plc Pension Plan ("the UK Plan") has been completed. The valuation has shown that the UK Plan is well-funded with an actuarial surplus. The UK Plan's Trustee and the Group have agreed that there will be no requirement for further contributions, which have amounted to £5.5m per annum in recent years.
Outlook
Demand continues to benefit from the resilience of our core markets, underpinning our confidence in maintaining the full year outlook for 2022, in line with our previous expectations. We continue to expect performance in the second half of the year to be similar to the first half.
Our compelling strategy and positioning in attractive and structurally resilient core markets, combined with our sector leading sustainability credentials and highly relevant technical capabilities, underpins our commitment to delivering a strong recovery across our Aerospace and Flexonics Divisions. This recovery drives the Group ROCE to a minimum of 13.5% over the medium term, in line with our previously stated ambition.
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 | FGS Global | +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 manufacturers 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.