Boeing issues weigh on FTSE 250 group Senior’s results
Aerospace and defence group Senior has reported revenue of £977.1m for the year ended 31 December 2024, a one per cent increase compared to the previous year.
Operating profit rose six per cent to £40.3m, while profit before tax increased by 22 per cent to £27.8m. Adjusted profit before tax declined by 14 per cent to £33.0m.
Basic earnings per share fell by 17 per cent to 6.25p, while adjusted earnings per share dropped by 30 per cent to 7.17p.
Senior, which manufactures high-technology components for companies such as Boeing, has been hit hard by issues with the American giant, one of its major customers.
Still, the group has managed to navigate the worst of these issues. Free cash flow improved by 12 per cent to £17.3m while net debt, excluding capitalised leases, rose to £153.4m from £132.0m.
The group also told the market this morning that it was making “good progress” in the sale of Aerostructures business, which has been rumoured for some time.
In 2019, it was reported that Senior was “reviewing all strategic options” for its aerostructures business. A price tag of £450m was mooted at the time.
Senior’s chief executive David Squires said: “We are committed to a sale of our Aerostructures business and are making good progress.”
“There is good buyer interest, we are now at an advanced stage of a sale process with a small number of parties, and negotiations are progressing positively.
“For 2024, Senior delivered results in line with revised expectations, enhanced by a strong cash performance.
“Our Aerospace revenue and profits have grown, notwithstanding the well-documented situation at Boeing, which affected production volumes.
“We responded dynamically, supporting our customers and controlling our costs, to limit the impact on Aerospace profitability in 2024.
“For the year ahead, the board anticipates good growth for the group, in line with its expectations.
“Increasing aircraft build rates, operational efficiency benefits and improved contract pricing are expected to drive good growth in Aerospace in 2025, with H2 performance expected to be higher than H1.
“For the full year, Aerostructures is expected to improve from a loss-making position in 2024 to an operating profit range of £9m to £11m in 2025, with the large majority of that being earned in H2.
“In Flexonics, we continued to outperform land vehicle markets and delivered double-digit margins, albeit revenues and profits were slightly lower than 2024 as anticipated.
“Looking ahead, our strategy of positioning Senior as a pure play fluid conveyance and thermal management business in attractive and structurally resilient core markets; active portfolio management; combined with our highly relevant technical capabilities; and sector-leading sustainability credentials, provides confidence of continuing performance improvements for the group.”