30th Jul 2018 08:27
LONDON (Alliance News) - Shares in Senior PLC rose early Monday as the manufacturing and engineering firm reported a sharp increase in interim profit growth, with performance outdoing expectations.
Shares were 5.1% higher early Monday, trading at 320.00 pence each.
For the six months to June, Senior's pretax profit increased by 31% on a statutory basis, and 36% at constant currency, to GBP31.4 million.
On an adjusted basis, the figure rose 20%, or 24% at constant currency, to GBP39.0 million, with this excluding charges related to the amortisation of intangible assets.
Senior's revenue rose 3% year-on-year, and 7% at a constant currency rate, to GBP523.3 million.
The FTSE 250-listed firm is to pay a 2.19p interim dividend, which is 7% higher than the 2.05p it paid to shareholders in the same period a year prior.
Senior said performance was strong in both of its divisions, Aerospace and Flexonics. The former increased revenue by 5.2% to GBP363.5 million, while adjusted operating profit rose 15% to GBP38.0 million.
In Flexonics, revenue increased 13% year-on-year to GBP160.6 million, while adjusted operating profit soared 33% to GBP12.8 million.
Senior said its order book remains strong, and for the rest of 2018 it expects margins to improve across the business.
Performance should be weighted to the second half, and at current foreign exchange rates Senior expects to make good progress.
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