11th Oct 2021 09:28
(Alliance News) - Senior PLC on Monday reaffirmed annual forecasts despite difficult trading conditions within its aerospace and oil and gas customer sectors, which are stunting growth.
The technology components manufacturer said trading for the nine months ended in September had been in line with management expectations, with market demand "recovering strongly" in both land vehicles and domestic aviation, while defence markets continued to remain stable.
Revenue of GBP496 million for the three quarters was 7% lower on a constant currency basis from a year before, part of which was pre-pandemic and also included the Senior Aerospace Connecticut business, which was sold in April this year, for the full nine months.
Despite rising demand in some sectors, sales in Senior's Aerospace division fell by around 14% on a constant currency basis from a year previously. The decline reflected the reduction in civil aircraft production rates, partly offset by growth from defence, semi-conductor equipment and space markets.
However sales in Flexonics grew around 11% on a constant currency basis compared to a year prior. Growth from the recovery in heavy-duty truck and off-highway markets was partially offset by a decline in oil & gas, Senior noted.
Supply chain problems were flagged by Senior as a persistent challenge, with the expectation being the problems will continue for the remainder of the year.
"The board is confident we will make good progress as the recovery continues. Our investment and capability in low carbon and advanced manufacturing technology, our global footprint, our strong track record and continued commitment to the highest environmental, social, and governance standards further underpins this confidence," Senior said.
Senior shares were down 1.1% at 166.10 pence early Monday in London.
By Will Paige; [email protected]
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