(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 constant‑currency 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 land‑vehicle sales rose 2.8% against expectations of a decline and the division succesfully maintained double‑digit 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 pre‑tax 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 year‑end.
Looking ahead, the FTSE 250-listed firm said it is ahead of schedule on its medium‑term targets and reiterated its full‑year guidance.
As of 0815 BST, Senior shares were up 1.03% at 293.50p.
Reporting by Iain Gilbert at Sharecast.com
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