FTSE 250 movers: Senior fronts up, Capricorn falling

FTSE 250: 19,853.80, +0.80% at 1516 GMT.

Senior hailed a strong trading performance on Monday as it posted a jump in full-year operating profit and said its order book remains healthy.

In the year to the end of December 2022, adjusted operating profit rose to £28.5m from £6.1m the year before, with revenue up 29% at £848.4m. The group said it swung to a pre-tax profit of £20.1m from a loss of £1.9m a year earlier.

Revenue in the aerospace division rose 17.5% year-on-year on a constant currency basis to £553.6m, "reflecting the overall recovery in demand". Senior highlighted a ramp-up in civil aircraft production rates, growth from semi-conductor equipment markets and ramp-up in space programmes reflecting end market growth. This more than offset a decline in defence, it said.

The civil aerospace sector had the strongest growth during the period, with Senior's sales up by 31.6% on the year. The company pointed to a significant ramp-up in aircraft production rates from the OEMs, resulting in rates being higher in 2022 than in 2021. This was driven by single aisle aircraft including regional and large business jets, with widebody production rate increases announced towards the end of the year.

Chief executive David Squires said: "We have delivered a strong set of results for 2022, overcoming what was a difficult macroeconomic environment. We significantly improved profitability, generated excellent free cashflow, strengthened our balance sheet and continued to make very good progress on our sustainability goals, maintaining our sector leading position.

"As we start 2023, our order book is healthy, reflecting favourable market dynamics, with commercial aerospace recovery in full swing with other important markets remaining buoyant. Demand is currently holding up well, though we remain mindful of the potential impact of the ongoing supply chain pressures in aerospace, as well as the broader macro-economic situation and geopolitical uncertainty."

At 1325 GMT, the shares were up 4.9% at 170.40p.

Jefferies, which reiterated its 'buy' rating on the shares and lifted the price target to 195p from 180p after the results - said they were ahead of its and consensus estimates, with "strong" year-over-year top- and bottom-line growth.

"We see multi-year recovery potential for Senior, and the MT/LT growth prospects also appeal. Indeed, we have growing conviction in the group's outlook, with significant transition potential ahead," it said.

Shares in Dechra slumped on Monday after the veterinary pharmaceuticals company issued a profits warning and reported a fall in half-year earnings.

Exploration and development firm Capricorn Energy said on Monday that full-year overall production had come in lower than original guidance but within its revised range of 33,000-36,000 barrels of oil per day.

Capricorn Energy stated overall annual production hit roughly 34,200 barrels of oil per day in 2022, dropping from initial guidance due to its joint venture drilling fewer development wells than originally planned and targeting oil versus higher rate, lower value gas.

Also weighing on production levels, Capricorn said its Teen gas condensate project start-up date was delayed from 2022 to 2023, while certain gas wells performed below year-end 2021 expectations.

Oil and condensate production grew 10% year-on-year and averaged approximately 14,500 bopd net to Capricorn's working interest, with about 80% of revenues being generated from oil and condensate sales in "a supportive price environment".

Gas production, on the other hand, declined 15% year-on-year to an average of 110.0m standard cubic feet per day net to the FTSE 250-listed group's working interest.

On another note, Capricorn revealed that Clare Mawdsley, who joined the group in 2013 as a tax advisor, has been named acting chief financial officer, succeeding James Smith, who will shortly be leaving the company.

Refractory products group RHI Magnesita said on Monday that both revenues and adjusted earnings had risen in the twelve months ended 31 December.

RHI Magnesita stated full-year revenues were said full-year revenues had grown 22% to €3.31bn, while adjusted underlying earnings had risen 21% to €384.0m. Adjusted EBITDA margins improved 60 basis points to 11.6%.

The FTSE 250-listed group also said higher costs had been fully offset through its €600.0m price increase programme, as well as increased sales volumes and market share gains in both the steel and industrial segments.

Looking forward, RHI cautioned that volatility and uncertainty were expected to persist across all markets in 2023, except India, while subdued volumes seen in the fourth-quarter were also seen carrying over into the first-half of 2023, with a contraction in construction activity affecting steel, cement and lime, non-ferrous metals and glass demand globally.

"However, demand softness will be offset by continued strong growt h in India and the group will also benefit from additional earnings from new acquisitions and cost savings from its strategic initiatives," said RHI.

"The group's outlook for revenue, EBITDA and EBITA in 2023 is broadly in line with current analyst consensus, with up to a 5% reduction in sales volumes and lower refractory pricing expected to lead to lower revenues, before contribution from new acquisitions. Costs are expected to remain flat or increase as higher energy and labour costs offset lower sea freight and purchased raw materials, resulting in a group EBITA margin of around 10% in 2023 (2022: 11.6%)."

FTSE 250 - Risers

Senior (SNR) 171.60p 5.67%
Wizz Air Holdings (WIZZ) 2,643.00p 4.80%
FirstGroup (FGP) 106.20p 4.32%
Trainline (TRN) 254.90p 3.62%
National Express Group (NEX) 124.90p 3.39%
Mitchells & Butlers (MAB) 159.50p 3.30%
Marks & Spencer Group (MKS) 157.85p 3.24%
Moonpig Group (MOON) 118.00p 3.15%
Carnival (CCL) 813.60p 3.12%
Molten Ventures (GROW) 375.60p 3.02%