23rd Apr 2021 08:35
(Alliance News) - Senior PLC on Friday said trading in the three months to March 31 has been in line with expectations.
The Hertfordshire, England-based engineering firm's Aerospace unit sales were down 25% for the the first quarter of 2021 compared to a year before, but were up 2% from the fourth quarter of 2020.
In its Flexonic unit, sales were down 4% compared to last year but up 10% from the last three months of 2020. Senior said revenue in the first quarter of 2021 benefited from the recovery in heavy-duty truck and off-highway markets, partially offset by a decline in oil & gas and the closure of its Flexonics business in Malaysia.
The firm said net debt at end of March was GBP220.8 million, giving GBP140.6 million headroom on its bank facilities.
Looking ahead, Senior said its 2021 market assumptions remain unchanged, and defence markets are anticipated to remain stable. However, civil aircraft production volumes look set to recover to pre-Covid level only by 2024 to 2025, it said.
"Production volumes for civil aerospace will be lower in 2021 than 2020 based on the production rates that the aircraft and engine original equipment manufacturers have announced. We also recognise that there are varying levels of inventory in different tiers of the supply chain," the company said.
Based on independent industry forecasts, Senior expects heavy-duty truck and passenger vehicle markets to continue to recover in 2021. In the power & energy markets, oil & gas sector recovery is unlikely before 2022, it added.
Shares in Senior were down 0.8% at 115.50 pence in London on Friday.
By Zoe Wickens; [email protected]
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