29th Feb 2016 07:50
LONDON (Alliance News) - Engineer Senior PLC on Monday said pretax profit sank in 2015 due to mixed aerospace market conditions, though revenue increased and the group pushed up its dividend payout.
The FTSE 250-listed company said pretax profit fell 21% to GBP63.8 million in 2015 from GBP80.6 million the prior year, as margins were hit in its aerospace operations by maturing, older jet programmes and volume reductions. It also saw lower aluminium revert prices over the year and booked costs on temporary measures taken to protect customer schedules in the aerospace business. Volume reductions also affected Senior's off-highway, power and energy markets.
Revenue rose for the year, up 4.0% to GBP849.5 million from GB820.8 million, though this was entirely driven by the contribution of acquisitions, with organic revenue lower.
Senior said the near-term outlook for the company looks challenging, but said it remains confident on its medium-term prospects. To that end, it will pay a final dividend of 4.36 pence per share, taking its total dividend up to 6.20p, a 10% rise year-on-year.
"Senior has delivered a solid set of results in 2015 against the backdrop of challenging conditions in some of our end markets," said Chief Executive David Squires.
"The group is financially robust and remains well positioned for the future as new Aerospace and Flexonics programmes and products enter production and as Senior increasingly benefits from its strong customer relationships and global footprint," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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