Senior maintains targets after solid third quarter

22nd Oct 2014 09:56

As it continues to search for a new chief executive, engineer Senior said full year profits were likely to hit forecasts after no surprises from trading in the third quarter.The FTSE 250-listed group added that barring any exceptional moves in currency rates it expected to make "solid" progress in 2015 and beyond due to the healthy growth in the commercial aerospace sector.Senior, which also works with clients in the defence, automotive and energy sectors, said net debt was slightly higher at the end of September than anticipated due to currency impacts. Broker Liberum left its full year debt estimate of £98m unchanged after speaking with management.In the three months to the end of September, the aerospace division, which accounts for two thirds of first-half group sales, maintained revenues at a "healthy" level, as large commercial customers Airbus and Boeing increased aircraft deliveries 5% in the first nine months of 2014 compared to the same period last year, and have a combined net order intake of 1,791."The resultant order books, nearly nine years at current build rates, continue to provide a very strong foundation for future growth," Senior said.The Flexonics arm had an encouraging quarter thanks to healthy demand from the North American heavy-duty diesel engine market, a European automotive market that is improving from a very low base and a strong performance from the newly acquired Upeca oil and gas business in Asia.Negatives were that European and Brazilian industrial markets remained subdued and demand for agricultural and construction equipment markets began to slow towards the end of the period.The company continues to search for a CEO to replace incumbent Mark Rollins, who in August announced his plans to retire before June 2015.Analysts at broker Investec said they did not expect to change forecasts on the back of the statement."The company remains operationally and financially strong but a lack of near-term catalysts, a change of CEO and broadly tougher end markets mean that we see relatively limited share price upside."