(recasts with more detail from statement)
LONDON (Thomson Financial) - Aircraft parts supplier Umeco Plc. unveiled a
20 percent rise in annual profits despite higher interest rates and delays in
deliveries of flagship jets at Boeing Co and Airbus and said it was well placed
for substantial extra growth.
Umeco, which supplies small parts such as fasteners to jet engine maker
Rolls-Royce Group Plc among others, said pre-tax profit before exceptionals,
amortisation and other items increased to 21.9 million pounds from 18.3 million
previously on an 18.8 percent rise in revenues to 335.2 million pounds.
Operating profit on the same basis lifted by 26 percent to 27.1 million
pounds and the company increased the total dividend by 9.7 percent to 17 pence
per share.
Umeco said it achieved the underlying growth in revenue and profits against
a background of delays in production of the Boeing 787 Dreamliner and the Airbus
A380 "super-jumbo".
It said its main market, civil aerospace, looked exceptionally robust with
EADS unit Airbus and Boeing entering 2008 with record order books.
Airbus has re-started production of the A380, although Boeing's development
of the 787 is behind schedule with initial deliveries now due in late 2009.
"Both of these significant programmes are anticipated to generate a high
level of incremental revenue for the group in the medium to long term," Umeco
said in its results statement.
Umeco said demand for composite materials in its core aerospace, high end
automotive and wind energy markets remained robust. The group supplies
composites to Formula One teams including Team McLaren Mercedes.
It said there was also buoyant demand for supply chain services, with civil
aerospace order intake continuing to grow.
Chief executive Clive Snowdon said the group was now focusing on composites
and its aerospace parts supply chain business following a programme to sell
non-core businesses. It said the contribution to the business of recently
acquired composite operations Lincoln and Primco were ahead of expectations.
"Recent strategic activity and investment has created a lean, well-focused
and financially robust group capable of high rates of organic growth," he said.
"With strong forward order books, this leaves us exceptionally well
positioned for another successful year."
The company added that it had appointed Andrew Moss, chief executive of the
group's composites division since 1999, to its board as chief operating officer.
"Andrew has been instrumental in the development of Umeco Composites and,
following our recent refocusing, is the right person to continue to drive
forward our operational performance across both composites and supply chain,"
Umeco said.
philip.waller@thomsonreuters.com
paw/jlw/paw/ejp
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