UK engineering group Senior's H1 adjusted pretax profit rises 38%
UK engineering group Senior's H1 adjusted pretax profit rises 38%
Overview
UK engineering components maker's H1 revenue rose 5% yr/yr, adjusted pretax profit up 38%
Adjusted operating margin rose to 10% from 8.4% a year earlier
Reported loss before tax reflects £34.7 mln in acquisition-related costs
Outlook
Senior expects completion of acquisition by Zeus UK Bidco by end-2026
Company sees continued strong progress in Aerospace driven by civil aircraft build rates
Flexonics full-year expectations have improved due to robust North American truck market
Result Drivers
AEROSPACE GROWTH - Higher civil aircraft build rates, improved pricing, increased defence volumes and demand from adjacent markets drove Aerospace division growth
FLEXONICS OUTPERFORMANCE - Flexonics division performed better than expected, with land vehicle revenues rising and strong operational execution
MARGIN IMPROVEMENT - Group and divisional operating margins rose due to higher volumes, improved pricing, increased aftermarket, and operational efficiencies
Company press release: ID:nRSC8551Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 390.80 mln |
|
H1 Adjusted Operating Margin |
| 10.00% |
|
H1 Adjusted Operating Profit |
| GBP 39.10 mln |
|
H1 Adjusted Pretax Profit |
| GBP 34.80 mln |
|
H1 Free Cash Flow |
| GBP 16.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy."
Wall Street's median 12-month price target for Senior PLC is GBp300.00, about 3.3% above its July 31 closing price of GBp290.50
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 28 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)