5th Aug 2019 10:31
(Alliance News) - Aerospace and defence engineer Senior PLC said Monday it expects to meet its 2019 expectations following growth in revenue and adjusted profit during the first half of the year.
In the six months to June 30, revenue rose 9.8% year-on-year to GBP580.4 million from GBP523.3 million. Adjusted pretax profit rose 4.2% to GBP40.7 million from GBP39.0 million with adjusted earnings per share rising 6.4% to 7.84 pence from 7.36 p.
The adjusted profit figure, Senior said, does not include a GBP7.0 million amortisation charge following acquisitions and a GBP7.2 million loss on disposal. Adjusted earnings per share takes account of the tax impact from these items.
Before the adjustments, pretax profit dipped 16% to GBP26.5 million from GBP31.4 million and earnings per share tumbled 18% to 4.81p for 5.90p.
The FTSE 250-listed firm said it traded in line with expectations during the half year.
The revenue rise was largely atrributed to growth in its Aerospace division, with revenue in this segment rising 12% to GBP431.2 million from GBP381.4 million. The company said the outlook for this division remains "positive" despite it being hurt by Boeing Co cutting production in its 737 Max fleet following the fatal Lion Air and Ethiopian Airlines crashes and subsequent grounding of the aircraft involved in both. Senior is a supplier to Boeing.
In the Flexonics division, revenue fell 9.4% to GBP149.6 million from GBP165.1 million, and outlook is less certain due to the ongoing trade discussions between the US and China, Senior said.
The company proposed an interim dividend for the period of 2.28p, up 3.9% from 2.19p.
Chief Executive David Squires said: "Trading at the group level in the first half of 2019 has been in line with expectations. Notwithstanding the reported 737 Max production rate cuts and the ongoing uncertainty around the current geopolitical and macro-economic backdrop, overall the board expects to meet current expectations for 2019.
"Looking ahead, the group is working to minimise the impact of the risk associated with the challenges described, with a renewed focus on cost and efficiencies. The group is well-positioned, operating in attractive end markets and is financially robust. The board remains confident of improving performance and returns for our shareholders."
Shares in Senior were down 0.7% at 197.50 pence each in London on Monday morning.
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