Senior delivers 'strong' H1 performance, aerospace and flexonics units outperform

(Sharecast News) - Engineering and manufacturing firm Senior said on Monday that it had delivered a "strong performance" in the six months ended 30 June, with pre-tax profits sharply higher year-on-year as both its aerospace and flexonics divisions outperformed expectations.

Senior said group revenues rose 7% on a constantcurrency basis to �390.8m, while adjusted pre-tax profits 38% to �34.8m and adjusted operating profits increased to �39.1m, helping lift operating margins to 10%, up 170bps.

Aerospace revenues climbed 13% to �230.4m, driven by stronger pricing, higher volumes in large commercial and business jets, increased defence demand and growth in adjacent markets such as semiconductor equipment. Aerospace margins rose 270bps to 13.1%.

Flexonics revenue was broadly flat at �160.4m, but landvehicle sales rose 2.8% against expectations of a decline and the division succesfully maintained doubledigit margins of 11.4% excluding its JV and 12.3% including it, supported by favourable mix and prior restructuring.

However, reported results were hit by �35m of contingent transaction costs linked to Senior's agreed takeover by Tinicum and Blackstone, resulting in a �5.6m pretax loss and a total loss after tax of �27.7m. It also noted that the recommended acquisition has now secured 10 of 12 required regulatory approvals, with completion expected by yearend.

Looking ahead, the FTSE 250-listed firm said it is ahead of schedule on its mediumterm targets and reiterated its fullyear guidance.

As of 0815 BST, Senior shares were up 1.03% at 293.50p.

Reporting by Iain Gilbert at Sharecast.com

See latest RNS at Investegate