TIDMSNR
RNS Number : 2466W
Senior PLC
13 November 2017
Trading Update and Appointment of Chairman-Designate
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 four months from July
to October 2017 (the "Period") and also announces the appointment
of Ian King as the Chairman-designate.
Trading and Markets
Trading in the Period has been in line with expectations.
In the Aerospace Division, revenue increased as anticipated,
driven by the production ramp up on the newer programmes such as
the 737 MAX, A320neo, A350 and C Series. This was partly offset, as
predicted, by reduced volumes on mature programmes such as 777,
747, A380 and the current engine versions of the 737 and A320 as
well as the business jet and military sectors. The Group continued
to make good progress increasing shipset content as additional
contracts were secured on the key large commercial aerospace
platforms. For example, we have announced today a new long-term
supply contract award to Senior Aerospace STEICO, from Boeing for
fluid systems products across multiple platforms.
Trading in the Flexonics Division was also as expected,
including the ramp up of new off-highway programmes. We are seeing
some improved activity in North American heavy-duty truck and
upstream oil and gas markets, while downstream oil and gas
activity, as predicted, remains subdued.
Group margins in the Period were as expected, with Aerospace
Division improvements resulting from increasing revenues and
operational improvements as we continue our cost reduction focus,
particularly on our newer programmes.
As previously announced, the Group was in the process of closing
its Aerospace BWT Ilkeston site which was due to be completed by
the end of 2017. We are pleased however, to confirm that during the
Period, this site was sold for GBP0.4m. This is a good outcome for
the Group, our customers and employees of the Ilkeston site.
Outlook
As a result of the sale of the Ilkeston site, Senior will not
now incur the full site closure costs. Consequently, Aerospace
performance is anticipated to be slightly ahead of previous
expectations.
In Flexonics, some signs of recovery are evident in our end
markets and therefore we continue to believe that the end of 2017
will be an inflexion point for our truck and off-highway and
upstream oil and gas facing businesses. As previously indicated, we
continue to believe that Flexonics performance will be marginally
lower in 2017 compared to 2016.
The Board therefore expects the Group's 2017 full year adjusted
profit before tax(1) to be slightly ahead of previous expectations,
at current exchange rates.
Looking further ahead, Senior expects to make progress from 2018
onwards as Aerospace production programmes ramp up and Flexonics
markets recover.
The 2017 full year results will be announced on Monday 26
February 2018.
Appointment of Chairman-Designate
Senior is pleased to announce the appointment of Ian King as its
Chairman-designate. Ian brings extensive experience of the
aerospace and defence sector and possesses the right skills,
industry experience and values to lead the Board through the next
phase of the Group's development.
Ian will join the Board as a non-executive Director on 13
November 2017, with the intention of taking over as Chairman from
Charles Berry when he retires from the Board, as previously
announced, at the conclusion of the Group's next Annual General
Meeting in April 2018.
Ian King is a non-executive Director of Schroders plc, having
been appointed to its Board on 1 January 2017, lead non-executive
Director of the Department for Transport, and is a senior advisor
to the Board of Gleacher Shacklock LLP. Ian was Chief Executive of
BAE Systems plc from September 2008 until June 2017, having been
originally appointed to its Board as Chief Operating Officer, UK
and Rest of the World in 2007. He also served as a non-executive
Director and senior independent Director of Rotork plc until June
2014.
No further information is required to be disclosed pursuant to
Listing Rule 9.6.13R.
Conference Call
There will be a call for investors and analysts at 8.30am GMT
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
Notes
(1) Adjusted profit before tax is before loss on disposal of
business and amortisation of intangible assets arising on
acquisitions.
Further information
Group Chief Executive, +44 (0) 1923
David Squires Senior plc 714 738
Group Finance Director, +44 (0) 1923
Bindi Foyle Senior plc 714 725
+44 (0) 20 7251
Philip Walters Finsbury 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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