Ahead of its Annual General Meeting on Friday 26 April 2024, Senior plc (LON:SNR), an international manufacturer of high technology components and systems, principally for the worldwide aerospace & defence, land vehicle and power & energy markets, has issued this Trading Update for the three months ended March 2024.
Key points
| ● | Trading in the Period in line with expectations |
| ● | Strong growth in commercial aerospace |
| ● | Outlook for the year remains unchanged; Board anticipates good growth for the Group in 2024 in line with its expectations |
Trading Update
Overall, trading in the Period has been in line with expectations with Group revenue growing 7% year-on-year on a constant currency basis. Aerospace revenue grew by 12% year-on-year driven by growth in commercial aerospace. In Flexonics we had good growth in downstream oil & gas and nuclear with land vehicle sales remaining resilient. As stated in our Full Year results in March, we were anticipating a rebalancing of inventory by our upstream oil & gas customers in 2024. Overall, this has led to Flexonics revenue reducing 2% year-on-year.
Outlook
Overall, the Board anticipates good growth for the Group in 2024 in line with its expectations.
Senior’s diversified position across key civil and defence aircraft platforms and increasing aircraft build rates is expected to drive good growth in Aerospace Division revenue through 2024. Regarding the 737 MAX, we have agreed sensible schedules with Boeing and other customers that take into account ongoing production demand, and current customer inventory levels. We have mitigated the impact of lower 737 MAX production with growth in other business.
For the full year we still expect to maintain good performance in Flexonics. Robust demand in our downstream oil & gas business is helping to offset the ongoing rebalancing of inventory by our upstream oil & gas customers and the normalisation to more typical levels of land vehicle market demand.
