Senior Share Discussion Threads

[carpingtris] 26/4/2024 10:41

Trading update:

26 April 2024

Senior plc: Q1 2024 Trading Update

Trading in line, full year outlook in line with Board's expectations

Ahead of its Annual General Meeting on Friday 26 April 2024, Senior plc ("Senior" or "the Group"), an international manufacturer of high technology components and systems, principally for the worldwide aerospace & defence, land vehicle and power & energy markets, today issues this Trading Update for the three months ended March 2024 (the "Period").

Key points

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Trading in the Period in line with expectations

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Strong growth in commercial aerospace

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Outlook for the year remains unchanged; Board anticipates good growth for the Group in 2024 in line with its expectations

Trading Update

Overall, trading in the Period has been in line with expectations with Group revenue growing 7% year-on-year on a constant currency basis. Aerospace revenue grew by 12% year-on-year driven by growth in commercial aerospace. In Flexonics we had good growth in downstream oil & gas and nuclear with land vehicle sales remaining resilient. As stated in our Full Year results in March, we were anticipating a rebalancing of inventory by our upstream oil & gas customers in 2024. Overall, this has led to Flexonics revenue reducing 2% year-on-year.

Outlook

Overall, the Board anticipates good growth for the Group in 2024 in line with its expectations.

The Group's diversified position across key civil and defence aircraft platforms and increasing aircraft build rates is expected to drive good growth in Aerospace Division revenue through 2024. Regarding the 737 MAX, we have agreed sensible schedules with Boeing and other customers that take into account ongoing production demand, and current customer inventory levels. We have mitigated the impact of lower 737 MAX production with growth in other business.

For the full year we still expect to maintain good performance in Flexonics. Robust demand in our downstream oil & gas business is helping to offset the ongoing rebalancing of inventory by our upstream oil & gas customers and the normalisation to more typical levels of land vehicle market demand.

[carpingtris] 26/4/2024 10:40

Contract extension:

25 April 2024

Senior plc announces $130m multi-year contract extension with Spirit AeroSystems

Senior plc ("Senior"), an international manufacturer of high technology components and systems, today announces that it has been awarded a 5-year contract extension by Spirit AeroSystems Holdings, Inc. for the supply of large diameter precision formed and machined structural components for Boeing aircraft programs such as the 777, 777-9 and 737 MAX family. The contract extension commences in January 2026 and is valued at approximately $130million over the 5-year period.

Commenting on the award, Launie Fleming, CEO of Senior Aerospace, said: "Spirit AeroSystems is an important customer to Senior who values our high levels of quality and on-time delivery. As aircraft build rates continue to increase, we are delighted to be awarded this 5-year contract extension for precision, complex aerostructure components."

Manufacturing will be undertaken at Senior Aerospace Jet Products' facility near San Diego, California, USA.

[sooty snipes] 24/4/2024 17:11

Are you American?

[yertiz] 24/4/2024 12:47

This is our Govt doing something apart from sitting on defense....

[wsm812] 24/4/2024 11:59

No response required, it's rhetorical - and something we can consider

[wsm812] 24/4/2024 10:57

Are Senior likely to benefit from the Gov recent spending increase on defense?

[sooty snipes] 14/3/2024 15:41

Good to see these nudging back to 180p Can we break through it this time?

[carpingtris] 12/3/2024 11:38

Looking good this last week or so :)

[gargoyle2] 04/3/2024 21:26

Watched the results presentation a couple of times today. 2023 results very good imo – adjusted EPS of 10.28p (or 7.74p if you strip out the 2p plus from the release of certain tax provisions, which won’t be repeated next year) much better than the 6.77p forecast in Stocko and Sharepad. Looking ahead, there seems to be plenty more growth to come from civil aerospace (42% of group revenues in 2023), with both Airbus and Boeing ramping up their single-aisle and wide-body build rates over the next few years. It will be around 2026 before build rates are back at pre-pandemic levels, so plenty of room to grow. Boeing’s 737 Max problems do not seem to be a big issue for SNR – only 6% of group revenues came from the Max platform last year and even if SNR’s Max rate stays at current levels all year (i.e. Boeing isn’t permitted by the FAA to ramp up higher), SNR will still end 2024 with higher Max sales than last year. Bindi confirmed that they still anticipate hitting the ‘minimum 13.5% ROCE target’ by the end of 2025 (ROCE was 7.1% in 2023). There’s a potential 2024 slowdown ('normalisation') in the land vehicle market and the growth in the Flexonics division as a whole looks like it might slow a bit, but Aerospace should take up any slack imo. My sense is that they are pretty well-advanced with the sale of the Aerostructures business – any buyer would likely want some more clarity around the 37 Max position before committing imo and SNR might also be looking to ramp up on other aerospace platforms before any sale. They have clearly done a lot of work on a deal though - they spent £3.2m on ‘costs associated with potential divestment activities’ in 2023 – that’s a lot more than setting up a data room and drafting an SPA (even at Slaugher and May's rates). My guess is that Abu Dhabi based Strata (part of the Mubadala group) might be in the race – I’m guessing a deal will be announced within the next 3-6 months.

[robertball] 04/3/2024 17:40

It went into a lull after Rollins left

[gargoyle2] 04/3/2024 12:23

737 Max was only 6% of group revenues in 2023, so hardly a big issue for them, other than via sentiment imo. 2024 Max sales will be higher than 2023 too, according to the results presentation today.

[jodalu] 04/3/2024 11:34

Not really same industry of Rr. And BAE none the less a very good company mostly affected by boing issues but great for the long run

[standish11] 04/3/2024 09:19

RR are in the process of selling assets to reduce their own debt pile so they are most unlikely to be interested in bidding for SNR.imo.

[cumnor] 04/3/2024 09:06

At last a solid UK engineering company making a profit in a beautiful space of aerospace and defense. Will be gone to US equity within 6 months imo. Had RR or BAE an ounce of sense they'd snap it up, thus consolidating one of the few industries we are actually good at.

[spudders] 29/2/2024 20:00

Cheers G2 🤞🏻

[gargoyle2] 29/2/2024 18:47

Next Monday 4th March -- see the comapny's website:
www.seniorplc.com/investors/financial-calendar.aspx

[spudders] 29/2/2024 17:33

Finals due! Tomorrow???

[carpingtris] 23/2/2024 18:09

That news slipped me by but yes good news 👍

[spudders] 21/2/2024 13:25

👍🏻 bit of positive news

[gargoyle2] 30/1/2024 18:10

Jefferies today: JEFFERIES RAISES SENIOR PLC PRICE TARGET TO 215 (195) PENCE - 'BUY'

[gargoyle2] 25/1/2024 19:09

200p from Lone Star would have been nice

[sooty snipes] 24/1/2024 10:34

Oh okay. Cheers! In that case I agree it would be more than coincidental with the update due.

[gargoyle2] 24/1/2024 10:28

BARCLAYS CUTS SENIOR PLC TO 'EQUAL WEIGHT' ('OVERW.') - TARGET 168 (205) PENCE

[carpingtris] 24/1/2024 10:21

downgrading?

[sooty snipes] 24/1/2024 10:07

What does Barc d/g mean?