REG - Senior PLC - Trading Update

SeniorAnnouncement

16/11/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221116:nRSP5134Ga&default-theme=true

RNS Number : 5134G  Senior PLC  16 November 2022

Senior plc

Trading Update - Trading delivered in line with expectations, full year
outlook unchanged

Senior plc ("Senior", "Company" or the "Group"), an international manufacturer
of high technology components and systems, principally for the worldwide
aerospace & defence, land vehicle and power & energy markets, today
issues this trading update for the ten-month period ended October 2022 (the
"Period").

Key points

 ●    Trading performance delivered in line with expectations
 ●    Full year outlook unchanged from previous expectations, with performance in
      second half of the year to be similar to the first half
 ●    Order book remains strong, with book-to-bill ratio of 1.28 in the Period
 ●    UK RCF facility refinanced and extended maturity to November 2026
 ●    UK pension plan well-funded; no further Company contributions required

Trading update

Senior delivered trading in the Period in line with management expectations.
 Group revenue grew 19% year-on-year on a constant currency basis,
underpinned by resilient core markets and a healthy order intake, with a
book-to-bill ratio of 1.28.

Activity in the Aerospace Division benefitted from the continuing recovery in
civil aerospace, particularly in single aisle and regional jet programmes.
 We are encouraged by the OEM's recent positive narrative around build rates
for both single aisle and long-range programmes.

Trading in the Flexonics Division continued to benefit from strong customer
demand in the heavy truck and power & energy markets.

The macroeconomic and geopolitical environment, supply chain and inflationary
challenges will persist into 2023 but these are being managed diligently with
our customers and suppliers.

Renewal of UK Revolving Credit Facility ("RCF")

The Group maintains a strong financial position and healthy balance sheet.
 The majority of our drawn borrowing is at fixed interest rates.  In the
period, we are pleased to have repaid the USD $20m private placement loan that
matured in October 2022 and refinanced our main UK revolving credit facility
at competitive rates and extended the maturity to November 2026.  In support
of the strong ESG commitments made by Senior and its lenders, we have jointly
agreed appropriate sustainability KPIs linked to the RCF.

UK Pension Plan triennial valuation

The latest triennial actuarial valuation of the Senior plc Pension Plan ("the
UK Plan") has been completed. The valuation has shown that the UK Plan is
well-funded with an actuarial surplus.  The UK Plan's Trustee and the Group
have agreed that there will be no requirement for further contributions, which
have amounted to £5.5m per annum in recent years.

Outlook

Demand continues to benefit from the resilience of our core markets,
underpinning our confidence in maintaining the full year outlook for 2022, in
line with our previous expectations.  We continue to expect performance in
the second half of the year to be similar to the first half.

Our compelling strategy and positioning in attractive and structurally
resilient core markets, combined with our sector leading sustainability
credentials and highly relevant technical capabilities, underpins our
commitment to delivering a strong recovery across our Aerospace and Flexonics
Divisions.  This recovery drives the Group ROCE to a minimum of 13.5% over
the medium term, in line with our previously stated ambition.

Further information

 Bindi Foyle            Group Finance Director, Senior plc          +44 (0) 1923 714 725
 Gulshen Patel          Director of Investor Relations, Senior plc  +44 (0) 1923 714 722
 Richard Webster-Smith  FGS Global                                  +44 (0) 7796 708 551

About Senior

Senior is an international manufacturing group with operations in 12
countries.  It is listed on the main market of the London Stock Exchange
(symbol SNR).  Senior designs and manufactures high technology components and
systems for the principal original equipment manufacturers in the worldwide
aerospace & defence, land vehicle and power & energy markets.
Further information on Senior plc may be found at: www.seniorplc.com

Cautionary Statement

This announcement contains certain forward-looking statements.  Such
statements are made by the Directors in good faith, based on the information
available to them at the time of the announcement, and they should be treated
with caution due to the inherent uncertainties underlying any such
forward-looking information.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFIDLFLELIF