Senior 'strong' as it reports on tougher 2015

Senior described itself as 'strong' on Monday, reporting annual results for a 2015 calendar year impacted by tough trading in a number of areas.

The FTSE 250 manufacturing and engineering firm saw revenue increase by 4% during the period, to £849,5m, though revenue growth was flat at constant currencies.

This was put down to gains within the Aerospace division being more than offset by declines in the Flexonics division, reflecting challenging market conditions facing the trucking and off-highway, and industrial businesses.

Operating profit was down 19% to £72.3m, from £89.6m. Senior's profit before tax dropped 21% to £63.8m, and basic earnings per share were down 24% to 11.59p. Adjusted earnings per share dipped 4% to 18.98p.

The company had previously indicated its margins were adversely impacted during the year by volume reductions on mature programmes, such as the A330, as well as lower profits on aluminium revert prices, temporary activities to protect customer schedules, and volume reductions in the off-highway, power and energy markets.

Senior had free cash flow of £51.7m, down 11%. Net debt increased by £89.6m during the year, to £194.6m.

"Senior has delivered a solid set of results in 2015 against the backdrop of challenging conditions in some of our end markets," said Senior chief executive David Squires.

"2015 was a year of significant activity for our Aerospace division with some mature programmes ramping down and newer programmes nearing completion of their industrialisation phase. In 2016 we expect growth in our Aerospace business as volumes start to ramp on the newer programmes," he added.

Squires said the Flexonics business faced difficult market conditions in 2015 and the board expected that to continue into 2016.

The group was taking appropriate mitigating cost management and efficiency actions, he said.

"The group is financially robust and remains well positioned for the future as new Aerospace and Flexonics programmes and products enter production, and as Senior increasingly benefits from its strong customer relationships and global footprint," Squires concluded.

Senior's board recommended a final dividend of 4.36p per share, up from 3.96p in 2014. That would bring total dividends for 2015 to 6.2p per share, a 10% increase on 2014.