Senior PLC Post-Close Trading Update (6836E)
July 09 2021 - 1:00AM
UK Regulatory
TIDMSNR
RNS Number : 6836E
Senior PLC
09 July 2021
Senior plc - Post-close Trading 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, issues this trading update for the six months ended
June 2021 (the "Period").
Trading Update
Trading in the Period has been ahead of management
expectations.
In Aerospace, sales are expected to be modestly ahead of
expectations. When compared to the equivalent period in the prior
year, part of which was pre-COVID and included Senior Aerospace
Connecticut for the full six months, sales in the Period are
anticipated to be around 21% lower on a constant currency
basis.
In Flexonics, sales in the Period are expected to be in line
with our expectations, with growth of around 6% compared to prior
year, on a constant currency basis. Growth from the recovery in
heavy-duty truck and off-highway markets was partially offset by a
decline in oil & gas and the closure of the Senior Flexonics
business in Malaysia.
For the Period, Group sales are likely to be 13% lower, on a
constant currency basis, than the equivalent period in the prior
year, part of which was pre-COVID and also included Senior
Aerospace Connecticut for the full six months.
As set out in the market update section of our 22 June 2021
announcement, the Group's end-markets are showing clear signs of
recovery.
Financial Position
The Group's cash performance has been robust with a net cash
inflow of GBP61m. Net debt at the end of June 2021 is expected to
be around GBP71m (excluding capitalised leases of GBP76m), with
headroom on our committed borrowing facilities increasing by GBP58m
since December 2020 to GBP215m.
Outlook
Our current market assumptions for the full year 2021 are as
follows:
-- Production volumes for civil aerospace will be lower in
2021 than 2020 based on the production rates that the aircraft
and engine OEMs have announced. We also recognise that
there are varying levels of inventory in different tiers
of the supply chain. However, based on the most recent
public updates from Airbus and Boeing, single-aisle production
rates are expected to pick up towards the end of 2021 and
into 2022.
-- Defence markets are anticipated to remain stable.
-- Based on independent industry forecasts, heavy-duty truck
and passenger vehicle markets are expected to continue
to recover in 2021.
-- In power & energy markets, recovery in the oil & gas sector
is likely to be at the end of 2021/start of 2022.
In our 23 April 2021 trading update, we stated that we continued
to expect overall Group performance to be broadly similar to 2020,
prior to adjusting for the impact of the divestment of Senior
Aerospace Connecticut. Despite the well-publicised headwinds
associated with freight and commodity costs; semiconductor supply
chain challenges for our land vehicle customers; as well as the
divestment of our Senior Aerospace Connecticut business, we now
expect overall Group performance for 2021 to be slightly ahead of
our previous expectations.
Looking further ahead, our differentiated offering in fluid
conveyance and thermal management products; our investment in low
carbon and advanced manufacturing technology; our global footprint;
our strong track record and commitment to the highest ESG
standards; and our positioning in attractive and diverse end
markets, means that the Board is confident we will make good
progress as the recovery continues.
The interim results for the half-year ended 30 June 2021 will be
announced on Monday 2 August 2021, where a full market and strategy
update will be provided. Senior intends to host a Capital Markets
Day in October 2021, the theme of which will be our fluid
conveyance and thermal management strategy: further details will be
provided in due course.
Notes
This announcement contains inside information.
Conference Call
There will be a call for investors and analysts at 8.30am BST
today. The dial-in details are as follows:
International access number: +44 (0) 33 0551 0200
Password: Senior 2021
Further information
Group Finance Director, Senior +44 (0) 1923 714
Bindi Foyle plc 725
Director of Investor Relations, +44 (0) 1923 714
Gulshen Patel 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 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTQVLFBFDLZBBQ
(END) Dow Jones Newswires
July 09, 2021 02:00 ET (06:00 GMT)
Senior (LSE:SNR)
Historical Stock Chart
From Apr 2024 to May 2024
Senior (LSE:SNR)
Historical Stock Chart
From May 2023 to May 2024