9th Jul 2021 09:49
(Alliance News) - Senior PLC on Friday raised its guidance for the financial year, now expecting its overall performance for 2021 to be slightly ahead of previous expectations.
The company originally said it expected a full year showing broadly similar to 2020, in which it posted a pretax loss of GBP191.8 million on revenue of GBP733.6 million.
The Hertfordshire-based group, which makes components for aerospace, defence and energy clients, noted trading in the first half of 2021 has been ahead of management expectations.
Senior explained: "Despite the well-publicised headwinds associated with freight and commodity costs; semiconductor supply chain challenges for our land vehicle customers; as well as the divestment of our Senior Aerospace Connecticut business, we now expect overall group performance for 2021 to be slightly ahead of our previous expectations."
Sales for the six months ended June 30 are expected to be 13% lower on a constant currency basis compared to the GBP409.0 million posted a year before, part of which was pre-pandemic. Aerospace sales were "modestly ahead of expectations" with an annual decline of 21%, while sales in the Flexonics division were in line with expectations, rising by 6%.
Looking ahead, Senior said it expects production volumes for civil aerospace to be lower in 2021 than 2020 but that single-aisle production rates are expected to pick up towards the end of the year and into next. Defence markets are anticipated to remain stable, while heavy-duty truck and passenger vehicle markets are expected to continue to recover in 2021.
Shares were up 0.7% at 162.82 pence each in London on Friday morning.
Senior's interim results will be announced on August 2.
By Will Paige; [email protected]
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