Senior shares rocket as aerospace and defence manufacturer lifts profit expectations on ‘flexonics’ demand
- Full-year pre-tax profits expected ‘above’ forecast range of £16.2m to £18m
- Senior sees strong performance within flexonics and aerospace divisions
FTSE 250 aerospace manufacturer Senior has lifted profit expectations after trade beat expectations at the close of 2022.
Senior, which makes components and systems for aerospace and defence, land vehicle, and power and energy markets, told investors on Tuesday that adjusted pre-tax profits for 2022 are expected to be ‘above the top end’ of an analyst forecast range of £16.2million to £18million.
The group, which will report its full-year results on Monday 27 February, said it had seen particularly strong performance within its ‘flexonics’ and aerospace divisions at the end of last year.
Senior supplies parts such as airframes and engine build-up tubes to firms like Boeing and Airbus
Senior shares soared 11.4 per cent in early trading to 152p, bringing gains to 16.8 per cent over one year. They slipped back slightly and were trading up 9 per cent at 2.45pm.
However, Senior shares have lost 45.4 per cent of their value over the last five years, after a major pandemic hit exacerbated a decline in the years running up to Covid 19.
Rickmansworth-based Senior, which supplies parts such as airframes and engine build-up tubes to firms like Boeing and Airbus, highlighted particularly strong performance in its Flexonics division.
Flexonics provides specialist components to industries such as oil and gas refinement, and steel, which deal with high temperatures and complicated pressure piping systems. Senior said performance in the department had been ‘driven by strong customer demand in the land vehicle, and power and energy markets’.
It added: ‘In particular, demand for heavy duty truck and the levels of maintenance and overhaul in power & energy have improved since the last trading update.’
Senior restarted paying dividends after a more than two-year hiatus in August, following a recovery in air travel that led to a 16 per cent rise in revenues to £402.2million in the first half.
The group had previously suffered from halt in global travel due to the pandemic, and before that, Boeing’s decision to axe production of the troubled 737 Max in January 2019, following two crashes in which 346 died.