18th Dec 2006 07:00
Senior PLC18 December 2006 Senior plc Pre Close Period Statement Senior plc, a manufacturer of high technology components and systems,principally for the aerospace, diesel-engine and energy markets, issues thistrading update for the twelve month period to 31 December 2006. Overall trading in the period has been healthy, particularly in the Group'saerospace markets, and the Group's 2006 adjusted profit before tax(*) isexpected to be in line with the Board's expectations, despite the adversetranslation effect of the weakening US$. After a number of years of selling businesses, it was pleasing that twoaerospace companies, Sterling Machine (end of January) and AMT (end of October),were acquired during 2006. They are highly complementary to the Group's existingoperations and significantly strengthen Senior's position in the buoyantworldwide aerospace market. Both operations have made excellent starts withinthe Group and are contributing as expected. Strong markets, operational improvements and the recent acquisitions meanoperating profits for the Aerospace Division are expected to be significantlyhigher in 2006 than in 2005. Overall demand has been strong and prospects remaingood, with orders for large civil aircraft again expected to be well ahead ofdeliveries during 2006. A number of new programmes, notably the Boeing 787, arecurrently in development. The business jet market is very healthy and themilitary and regional jet markets are stable. The consequence of the increasingdemand is a general drive to increase build rates and for the large primes, suchas Boeing and Rolls-Royce, to outsource more work to suppliers like Senior. As aconsequence capital expenditure for the division is rising to increase capacityto meet the growing demand. Increases in raw material prices and theiravailability continue to be issues for the industry. In the Flexonics Division, demand has been largely as expected. The Division'sautomotive markets, which are more focussed on front wheeled drive passengervehicles than on the larger sports utility vehicles and pick-up trucks, havegenerally been flat and remain competitive. On the other hand, the powergeneration, chemical processing and oil and gas markets have all been strong.The new products for the heavy duty diesel engines are now in the final stagesof production launch and the heavy truck markets, both in the USA and in Europe,continue to offer good future opportunities. Additional engineering resource isbeing deployed to address these opportunities. For 2006, operating profits forthe Flexonics Division are expected to be ahead of the prior year. The acquisitions of Sterling Machine and AMT were both funded by a combinationof new shares and additional borrowings. Consequently, net debt has increasedduring the year and is anticipated to be around £105m at the year-end, with thefinal outcome partially dependent upon the closing $:£ exchange rate. Looking ahead, the prospects for Senior remain very encouraging. The 2006 full year results are scheduled to be announced on Thursday 1 March2007. (*) Adjusted profit before tax is before profit / loss on sale of fixed assets and before amortisation of intangible assets arising on acquisition 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 engineered componentsand systems, principally for the aerospace, diesel-engine and energy markets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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