Senior beats profit forecasts, but FX a concern in 2014

3rd Mar 2014 07:28

- Revenues up six per cent, adjusted profits rise eight per cent- Net debt below forecasts, total divi up 10 per cent- FX a headwind in 2014Manufacturing group Senior beat forecasts with its annual profits for last year and gave a strong outlook for 2014, but warned of 'uncertainty' with regards to volatile foreign exchange (FX) movements. The company, which operates through its two main divisions of Aerospace and Flexonics, reported a 6% rise in revenue in 2013 to £775.1m, although growth was just 3.3% on an organic, constant currency basis.The company said results were helped by organic revenue growth in large commercial aerospace and a full year's contribution from GAMFG Precision, the precision-machining business acquired towards the end of 2012.Adjusted pre-tax profit rose 8% to £98.1m, ahead of Jefferies' £97.8m prediction. The company's net debt position of £59.2m, down £12m year-on-year, was also better than expected, "leaving the group well placed to fund future organic and acquisitive growth", according to Chief Executive Mark Rollins.Senior has declared a final dividend per share (DPS) of 3.6p, bringing the total DPS for the year to 5.12p, up 10% year-on-year.The company said that the 2014 financial year has "started satisfactorily" with underlying results expected to be in line with expectations."However, volatile foreign exchange movements add more uncertainty to the reported group outcome for the year," said Chairman Charles Berry.According to analysts at Jefferies, the results "make for good reading" and the outlook statement is "very robust from an underlying perspective, although there continues to be an FX headwind"."Senior is well placed for future growth we believe, but due to FX, we expect to see consensus forecasts drift down modestly."BC