27th Jul 2015 06:53
LONDON (Alliance News) - Senior PLC on Monday said it saw diverging currency translation impacts in the first half, as its pretax profit rise was wiped out by an adverse effect but its revenue was helped by favourable currency movements.
The FTSE 250-listed manufacturing company, which makes components and systems for the aerospace, defence and energy markets, said its pretax profit for the first half was GBP45 million, a slight reduction on the GBP45.1 million it posted a year earlier. In constant currencies, its pretax profit increased by 5%.
Senior said its revenue in the half was up to GBP434.5 million from GBP400.4 million, though this would have been reduced to only a 4% rise, from the 9% reported increase, if measured in constant currencies. In addition to the favourable currency translation effects, revenue was driven higher by the contribution from acquisitions. The group said revenue growth in commercial aerospace was offset by weaker energy market conditions.
Senior said it will pay an interim dividend of 1.84 pence per share, up 10% year-on-year.
"Senior has delivered a solid set of results in the first half of 2015. Revenue and adjusted profits have increased and free cash flow remains healthy despite more challenging conditions in some of our end markets," said David Squires, Senior's chief executive.
"In response to these market headwinds, we are taking appropriate mitigating actions and anticipate some improvement in profitability in the second half of this year at current exchange rates. The group remains well positioned for the future as new Aerospace and Flexonics programmes and products enter production," Squires added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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