Senior PLC FY20 Post-close Market Update (6141L)
January 14 2021 - 1:00AM
UK Regulatory
TIDMSNR
RNS Number : 6141L
Senior PLC
14 January 2021
14 January 2021
Senior plc: FY20 Post-close Market Update
Senior plc ("Senior" 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 market update for the year
ended 31 December 2020 (the "Period").
Key Points
-- Q4 performance was slightly ahead of the Board's previous
expectations
-- Strong cash inflow helped reduce net debt (including IFRS
16 leases) by approximately GBP23m
-- There is no change to our view of end market dynamics since
our November 2020 trading update
Trading update
Q4 performance was slightly ahead of the Board's previous
expectations, although the lower level of activity first seen in Q2
2020, due to the impact of COVID-19 on some of our key end markets,
persisted for the remainder of 2020. For the full year 2020,
subject to audit, revenue is likely to be around GBP733m and we
anticipate the adjusted loss before tax(1) to be slightly better
than previous expectations.
In Aerospace, sales are expected to be around 37% lower
year-on-year on a constant currency basis which reflects the impact
of COVID-19 and the 737 MAX situation. On a quarterly basis,
Aerospace sales declined 22% in Q1, 40% in Q2, 45% in Q3 and around
39% in Q4 year-on-year. On a sequential basis, Aerospace sales in
Q4 improved by around 11% relative to Q3 as civil aerospace sales
stabilised and Aerospace Division sales to other end markets (space
and semi-conductor equipment) improved.
In Flexonics, sales are expected to be around 24% lower
year-on-year on a constant currency basis. On a quarterly basis,
Flexonics sales declined 23% in Q1, 33% in Q2, 25% in Q3 and around
13% in Q4 year-on-year. On a sequential basis, Flexonics sales in
Q4 were around 10% above Q3. The performance in Q4 benefited from
the partial recovery in the heavy-duty truck and passenger vehicle
markets.
There is no change to our view of end market dynamics in 2021
since our Q3 Trading Update on 3 November 2020. Given the ongoing
and unpredictable nature of the pandemic, our view remains that it
is likely to be 2022 before we see a meaningful recovery in Group
revenues and in 2021, Aerospace is set to be at least as
challenging as 2020 given the current customer-announced production
rates.
Management actions
Our restructuring programme is progressing to plan and is
delivering the expected benefits. We are continuously reviewing our
plans and taking actions where appropriate in response to
prevailing market conditions. Since our last trading update, we
have taken the decision to close our small Flexonics Upeca business
in Malaysia which serves the oil & gas sector and we expect to
have completed the bulk of closure activities during Q1 of
2021.
Liquidity
Throughout 2020 we maintained a relentless and effective focus
on cash preservation and liquidity. The Group generated around
GBP23m net cash inflow in 2020: our actions on working capital
management and controls over capital expenditure have, in
particular, benefited this year's cash result. This strong cash
flow performance allowed the Group to reduce net debt and broadly
maintain headroom whilst repaying the GBP15m ($20m) US Private
Placement Note that matured in October 2020. Net debt (including
IFRS 16 leases of GBP77m) is expected to be around GBP206m at 31
December 2020, with headroom on our committed borrowing facilities
of GBP157m. We remain comfortably within our agreed covenant
levels.
Notes
This announcement contains inside information.
(1) Adjusted loss before tax is before amortisation of
intangible assets from acquisitions, goodwill impairment,
restructuring and disposal activities.
Further information
Group Finance Director, Senior +44 (0) 1923 714
Bindi Foyle plc 725
Director of Investor Relations, +44 (0) 1923 714
Jennifer Ramsey Senior plc 722
+44 (0) 7796 708
Richard Webster-Smith Finsbury 551
About Senior
Senior is an international manufacturing group with operations
in 13 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 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.
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