8th Mar 2021 10:02
(Alliance News) - Senior PLC on Monday warned of another slow year for civil aerospace production in 2021, after the engineering firm reported a swing to loss and revenue plunge during a virus-hit 2020.
In 2020, the Hertfordshire-based company's revenue fell 34% to GBP733.6 million from GBP1.11 billion in 2019. It suffered a swing to a pretax loss of GBP191.8 million from a GBP28.7 million profit.
Senior decided against a payout for 2020, after paying 2.28 pence in dividends for 2019.
"2020 was an extraordinary year. The coronavirus pandemic had a profound effect on our markets and customers and although there are some signs of stabilisation, the impact will be with us for some time to come," Chief Executive Officer David Squires said.
Senior added that it was hurt as well by the grounding of Boeing Co's 737 MAX aircraft. Regulators in the US, UK, Canada and Brazil have cleared the jet to take to the skies once again, roughly two years after the plane was grounded following two fatal crashes.
Squires added: "Looking forward to the rest of 2021, while there remains uncertainty, because of the unpredictable nature of the pandemic, based on our assumptions for our core markets in 2021 and prior to adjusting for the impact from the divestment of Senior Aerospace Connecticut, we would expect overall group performance to be broadly similar to 2020."
Production volumes for civil aerospace "will be lower" in 2021 than they were in 2020. In defence markets, output is "anticipated to remain stable".
The aerospace division saw a 37% revenue plunge in 2020, as lockdown measures sapped demand for travel and emptied skies.
Senior added: "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 unlikely before 2022."
Senior shares were 3.4% higher at 113.73 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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