28th Apr 2006 11:30
Senior PLC28 April 2006 28 April 2006 Senior plc ANNUAL GENERAL MEETING - CHAIRMAN'S STATEMENT At today's Annual General Meeting of Senior plc, the Chairman, Mr JamesKerr-Muir, said: "Senior delivered a strong performance in 2005. Compared to the prior year,like-for-like sales increased by 10%, operating profits from continuingoperations increased by 18% and adjusted earnings per share were up by 12%. Theimproved performance was spread across the Group's three operating sectors -aerospace, automotive and industrial. In the Aerospace Division demand continues to increase, with the market forlarge civil aircraft strengthening and the Group's end customers consequentlyincreasing build rates for both aircraft and engines. There are some constraintswith rising prices and lengthening lead times for raw materials, but overall themarket continues to move ahead. Sterling Machine, the North American aerospacecompany acquired by Senior in January 2006, has made a good start. It isexpected to be earnings enhancing in its first year despite the recent, and nowended, six week strike at its largest customer Sikorsky. Demand in the newly reported Flexonics Division, formerly the Automotive andIndustrial Divisions, is healthy. Whilst automotive volumes are relatively flat,preparations gather pace for the start of production at the end of this year ofthe new high pressure common rail diesel engine products developed for the NorthAmerican heavy duty market. As a result, the Group's capital expenditure rose in2005 and is expected to do so again in 2006. This market continues to provide asteady stream of good enquiries, now principally for production in 2009 andbeyond. Elsewhere, the industrial businesses continue to improve theirperformance, with the difficult Wembley contract coming towards an end and thebuoyant oil and gas market fuelling strong demand in Canada and the USA. Group debt is expected to be higher at the end of 2006 than at the end of 2005.This is due to the increased level of capital expenditure and the acquisition ofSterling Machine, which was funded through a combination of debt and a placingof ordinary shares. Overall, the Group is well placed for future growth with trading for the firstthree months of 2006 in line with the Board's expectations." For further information please contact:Senior plcGraham Menzies, Group Chief Executive 01923 714702Mark Rollins, Group Finance Director 01923 714738 Finsbury GroupAdrian Howard 020 7251 3801 This announcement, together with other information on Senior plc may be foundat: www.seniorplc.com Note to Editors: Senior is an international manufacturing group with operations in 11 countries.Senior designs, manufactures and markets high technology components and systemsfor the principal original equipment producers in the worldwide aerospace,automotive and specialised industrial markets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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