Senior PLC (LON:SNR) has announced its results for the year ended 31 December 2024
Trading in line with revised expectations, strong cash performance
| FINANCIAL HIGHLIGHTS | Year ended 31 December | change | change | (4) | |||
| 2024 | 2023 | (constant currency) | |||||
| REVENUE | £977.1m | £963.5m | +1% | +4% | |||
| OPERATING PROFIT | £40.3m | £37.9m | +6% | +10% | |||
| ADJUSTED OPERATING PROFIT (1) | £46.5m | £45.8m | +2% | +5% | |||
| ADJUSTED OPERATING MARGIN (1) | 4.8% | 4.8% | nil bps | +10 bps | |||
| PROFIT BEFORE TAX | £27.8m | £22.8m | +22% | +27% | |||
| ADJUSTED PROFIT BEFORE TAX (1) | £33.0m | £38.3m | -14% | -11% | |||
| BASIC EARNINGS PER SHARE | 6.25p | 7.52p | -17% | ||||
| ADJUSTED EARNINGS PER SHARE (1) | 7.17p | 10.28p | -30% | ||||
| TOTAL DIVIDEND (PAID AND PROPOSED) PER SHARE | 2.40p | 2.30p | +4% | ||||
| FREE CASH FLOW (2) | £17.3m | £15.5m | +12% | ||||
| NET DEBT EXCLUDING CAPITALISED LEASES (2) | £153.4m | £132.0m | £21m increase | ||||
| ROCE (3) | 6.8% | 7.1% | -30bps | ||||
Highlights
| ● | Group sales up 4%(4) and adjusted operating profit up 5%(4) yoy |
| ● | Group free cash flow of £17.3m, up 12% |
| ● | Book-to-bill 1.12 underpinning confidence in future growth |
| ● | Notable contract wins in both Aerospace and Flexonics divisions |
| ● | Spencer sales have grown over 135% in the two years since acquisition |
| ● | Sale process of Aerostructures at an advanced stage |
| ● | The Board anticipates good growth for the Group in 2025 in line with its expectations |
| ● | Final dividend of 1.65p, bringing full year dividend to 2.40p, up 4%, reflecting trading performance and future prospects |
Commenting on the results, David Squires, Group Chief Executive Officer of Senior plc, 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. We are focused on completing the sale process and maximising value for shareholders and will update the market in due course. This is in line with our strategy to position Senior as the leading pure play fluid conveyance and thermal management business.
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.
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.
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.
We expect Flexonics performance in 2025 to be broadly similar to 2024. In land vehicles, the ramp up of programmes recently won means we expect our 2025 performance to be broadly similar to 2024, despite some softness in North America and Germany. In power and energy, activity levels are expected to be similar to 2024.
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. We have today announced new and improved medium term financial targets which will deliver strong value creation for all of our stakeholders.(5)
Reflecting the Group’s performance and the Board’s confidence in its future prospects, the Board has approved a final dividend of 1.65 pence per share, bringing full year dividend to 2.40 pence per share, an increase of 4% compared to 2024.”
Webcast
For the Full Year Results 2024, there will be a presentation on Monday 3 March 2024 at 9.00am GMT.
Investor Event
Following the Full Year Results presentation, Senior will be holding an Investor Event from 10.00 am to 11.45 am GMT. This will focus on delivery of strategy, the prospects for Senior as a pure play fluid conveyance and thermal management (“FCTM”) business, and will outline new and improved medium term financial targets for the FCTM business. Both events will be accessible via a live webcast on Senior’s website at www.seniorplc.com/investors and the webcasts for both events will be made available on the website for subsequent viewing.
