27th Jun 2005 07:00
Senior PLC27 June 2005 Senior plc Pre Close Period Statement Senior plc, a manufacturer of high technology components and systems,principally for the Aerospace and Automotive markets, issues this trading updatefor the six-month period to 30 June 2005: Overall trading for the Group, during the first half of 2005, has been betterthan anticipated by the Board at the time of its AGM statement on 15 April 2005. The 2005 interim results will be prepared for the first time under InternationalAccounting Standards ("IAS"). On this basis, adjusted profit before tax(1) fromcontinuing operations is expected to show a comfortable increase over theequivalent number for the first half of 2004. The tax rate is, however, expectedto increase. Under IAS, the adjusted profit before tax from continuingoperations for the first half of 2004 was £6.1m and the tax rate 15%. Net debt, at the end of June, is anticipated to be in line with the Board'sexpectations, being similar to the £57.9m at the end of June 2004. The principalreasons for the increase from the £50.6m reported at the end of 2004 include therecent strengthening of the US$, in which the majority of the Group's borrowingsare denominated, and the increase in automotive capital expenditure aspreviously announced. In the Aerospace Division, demand and profitability have continued to improve asa result of healthy increases in the build rates of commercial aircraft andcommercial engines. Defence sales have remained strong whilst the regional jetmarket has softened. In the global automotive market, demand for new vehicles is relatively weak andraw material costs remain high. The Group's diesel product developmentopportunities continue to be strong, with the costs of the required additionalengineering resources being expensed as incurred. As anticipated, profitabilityof the Automotive Division will be below that for the first half of 2004.However, the first half profitability of the Division is expected to show arecovery over the second half of 2004 as a result of the improved recovery ofraw material price rises, the Group's French operation returning to profit andthe operation in South Africa benefiting from higher volumes. The full benefits of the rationalisation undertaken during 2004 at Pathway arenow being realised. Consequently, the Industrial Division is expected to reporta strong improvement in profitability compared to the performance during thefirst half of 2004. The Group will be reporting its interim results on Thursday 4 August 2005. (1) adjusted profit is that before goodwill impairment, profit /loss on sale of operations and fixed assets and foreign exchange gains / losseson long-term inter-company loans. For further information please contact:Senior plcGraham Menzies, Group Chief Executive 01923 714702Mark Rollins, Group Finance Director 01923 714738Finsbury GroupCharlotte Hepburne-Scott / Gordon Simpson 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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