Senior's profits rise on demand for aircraft parts from Boeing

29th Jul 2013 12:54

British aero engineer Senior posted a 6.2 per cent rise in adjusted profit to 48.2m pounds in the first half, boosted by demand for commercial aircraft parts.Senior, which supplies parts for Boeing's 787 Dreamliner, said the suspension of Dreamliner deliveries had no significant impact on its financial results. The aircraft was grounded by regulators in mid-January after batteries on two aircraft overheated. The grounding was lifted in April after Boeing redesigned the battery system.Senior's revenue jumped 5.9% to £399.3m, while adjusted earnings per share climbed 8.6% to 9.31p.Adjusted operating margins declined slightly to 13.3% from 13.5% last year following the acquisition of GAMFG Precision in November 2012 and the higher costs incurred in the first half to deliver new aerospace programmes and relocate Weston's aerostructures business. The group's continued strong cash generation helped reduce net debt by £5.4m to £65.5m despite the acquisition of Atlas Composites for £2.4m in February, and the adverse effect on reported net debt of the stronger US dollar.The company raised its interim dividend by 10.1% to 1.52p per share.RD