Senior shrugs off pandemic blip to deliver strong 2023 results
Manufacturing group Senior PLC’s flexonics and aerospace divisions helped it to a strong performance last year, with profit, revenue and earnings per share all up substantially on 2022.
The firm, which in 2021 rejected a $1.2bn (£950m) takeover bid bd from private equity firm Lone Star, saw its adjusted operating profit rise 61 per cent year-on-year, to £45.8m.
This comes on the back of impressive results in 2022, before which the company, along with its entire sector, struggled to adjust to the supply chain issues brought about by the pandemic.
The latest set of results also saw Senior rake in a revenue of £964m, up 14 per cent from the £848m the previous year.
David Squires, the group’s chief executive officer, said: “Senior has delivered a year of strong trading performance and profit growth.
“Our Flexonics Division [which makes thermal management solutions for hybrid and electric vehicles] performed well, with double-digit margins and strong growth in both land vehicle and power and energy… Momentum is building in our Aerospace Division.”
Squires added that he anticipates “good growth” for the group this year, in line with expectations. He singled out the prospects of its aerospace division, which supplies parts for plane manufacturers and last month signed a landmark deal with Airbus. Senior also downplayed the effect that the pause in expansion of the Boeing 737-MAX will have on the business, saying aerospace giant would maintain its master schedule.
The firm did, however, warn of a tapering off in demand for its land vehicle division, which is likely to be affected by a wider decline in the automobile sector that is anticipated. Senior warned the North American heavy-duty truck sector will shrink by 16 per cent, while the European truck and bus market is set to decline by 11 per cent.
The firm expects further consistent growth in its power and energy division, which makes up 15 per cent of the group currently.