10th Jul 2020 09:17
(Alliance News) - Senior PLC on Friday expressed a confident outlook going forward despite expecting to report a revenue fall in the first half of 2020.
The technology components manufacturer reported a "robust" cash performance in the six months to the end of June, with GBP3 million net cash inflow generated during the period, in the face of "significant disruption" to its end markets.
The company said it now expects revenue in the first half of 2020 to be around 30% lower than GBP580.4 million generated in the first half of 2019.
Senior said net debt is expected to be GBP239 million at June 30, an improvement of GBP3 million from the end of December 2019.
In 2019, in order to counter the anticipated decline in sales, Senior initiated a restructuring plan. Reflecting the additional actions which the company is taking, it now expects the total restructuring charge to be up to GBP35 million, an increase from the GBP23 million originally anticipated.
Going forward, Senior said trading for the rest of 2020 continues to be hurt by Covid-19. As a result, guidance for 2020 remains suspended.
"The coronavirus pandemic has had a profound effect on our markets and customers since March and the impact will be with us for some time to come," said Chief Executive David Squires.
"However, we remain confident that in the medium term, our differentiated offering in fluid conveyance and thermal management products, our global footprint and our positioning in attractive and diverse end markets will help to ensure that we emerge strongly as the recovery starts to take shape," Squires added.
Senior intends to announce its interim results on August 3.
The stock was trading 3.0% lower in London on Friday at 58.79 pence a share.
By Evelina Grecenko; [email protected]
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