4th Aug 2014 07:58
LONDON (Alliance News) - Manufacturing group Senior PLC Monday reported an increase in profit, mainly due to continuing strong growth in the commercial aerospace sector, the group's largest end-market, and improving demand from its principal land vehicle markets.
The Hertfordshire-based company posted pretax profit of GBP45.1 million for the six months ended June 30, up from GBP37.1 million a year earlier, as revenue crept up to GBP400.4 million from GBP399.3 million.
FTSE 250-listed Senior said revenue included an unfavourable exchange impact of GBP26.2 million and a beneficial incremental impact from acquisitions of GBP16.0 million.
If the effect of acquisitions and the exchange impact are excluded, underlying group revenue from organic operations increased by 3% on a constant currency basis, the company said.
The aerospace division - which represents 66% of group revenue - performed particularly well, with revenue rising to GBP264.0 million from GBP239.8 million.
The division was boosted by a number of acquisitions, including of aerospace components manufacturer Thermal Engineering Holding Limited for GBP28.3 million. Thermal specialises in manufacturing hot- and cold-formed components, complex fabricated assemblies, and thermal insulation heat shields and systems.
Senior said its Flexonics division, which targets the medium- and heavy-duty diesel engine markets in the US, saw revenue rise to GBP136.6 million from GBP133.8 million a year earlier, buoyed by sales to the truck and off-highway market.
During the first half, the company acquired UPECA Technologies Sdn Bhd in an effort to strengthen its aerospace and energy presence in the fast-growing Asian region. Malaysia-based UPECA was acquired for GBP75.5 million in April.
Senior said the second half is expected to benefit from six months' full ownership of UPECA.
Looking ahead, Senior said progress is expected to be made across the group's operations during the remainder of the year, although the anticipated improved performance at Thermal Engineering is yet to be fully delivered and the successful industrialisation of new programmes, particularly at Senior Aerospace SSP, remains a challenge.
On the back of its performance, the company increased its interim dividend 9.9% to 1.67 pence from 1.52 pence a year earlier.
Senior shares were quoted down 1.3% at 259.00 pence Monday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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