7th Nov 2019 09:25
(Alliance News) - Senior PLC said on Thursday it is implementing a restructuring programme to drive improved results, as the company is dealing with some challenges in Flexonomic and Aerospace markets.
The manufacturer of high-technology components and systems said the restructuring currently identified will result in around GBP20 million, "with a significant portion coming from headcount reductions as we match capacity to demand", the company said.
As part of the restructuring, the engineer said it will be transferring major work packages to South East Asia and will close Aerospace AMT's South Carolina facility by early 2020. The cost of this restructuring programme is expected to be largely recovered in 2020 and 2021, the company said.
Senior said sales grew in Aerospace division in the first ten months of 2019 from a year before, however revenue in the last four months - July to October - has been lower than previously expected due to weakened demand in commercial aircraft engine market.
Group's Flexonics division has been performing in line with expectations with "markets weakening in the last four months as anticipated."
Senior said it has continued with its "prune to grow" activities and recently disposed of two more non-core businesses, in addition to Senior Flexonics Blois which was disposed of at the start of the year.
David Squires, chief executive, said: "These actions and our 'prune to grow' strategy will strengthen our business. Combined with a slightly lower forecast tax rate and lower central costs, this means that the group's performance in 2019 will be broadly in line with our expectations."
In 2018, Senior's pretax profit rose 17% to GBP61.3 million from GBP52.2 million the year prior, as revenue rose 5.9% to GBP1.08 billion from GBP1.02 billion the year before.
Senior shares were down 7.1% in London at 174.52 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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