14th Jan 2022 08:58
(Alliance News) - Senior PLC on Friday said recovery was "underway" in 2021, as annual results are expected to meet expectations.
The Hertfordshire, England-based high technology component and systems manufacturer said trading in 2021 was in line with expectations. It predicted annual revenue would be as expected: roughly GBP659 million, a 10% decrease from GBP733.6 million in 2020, the first quarter of which was unaffected by the pandemic.
Senior's Aerospace division revenue will be around 12% lower for 2021 on a constant currency basis, whereas Flexonics revenue was up 10% on the same basis. Despite the overall lower revenue, Senior said it has boosted profitability in both divisions, by cutting costs and restructuring.
The Aerospace division, which provides parts for aircraft makers such as Boeing Co, was badly damaged as airlines cut back on aircraft purchases during the pandemic.
Senior expects its adjusted loss before tax to be in line with previous expectations. In April, Senior had said it expected overall performance in 2021 to be in line with 2020, In July, it said it expected 2021 to be slightly ahead of its April expectations. For 2020, Senior reported an adjusted pretax loss of GBP6.2 million, swung from a GBP78.5 million profit in 2019.
Senior had a strong net cash inflow of roughly GBP58 million in 2021, it said on Friday. It had net debt of GBP80 million at the end of December, excluding GBP73million in capital leases, down GBP49 million from GBP205.9 million in December 2020.
Senior shares were down 0.9% to 140.60 pence each in London on Friday morning.
"Overall, we are seeing recovery underway in our core markets including civil aerospace and anticipate that continuing in 2022 and beyond. While the impact of the pandemic and industry-wide supply chain constraints are still with us, we continue to manage these diligently," the company said.
By Elizabeth Winter; [email protected]
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