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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Manufacturing & engineering

Senior running out of steam as road and oil & gas markets stutter

Shares lost around one-sixth of their value as the company warned hard times for its Flexonics division would hit full-year results

Engineer Senior PLC (LON:SNR) slumped 16% in early deals on the back of a profit warning.

“Whilst the board anticipates some improvement in the fourth quarter over the third quarter, the group's performance for the full year 2016 is expected to be lower than previously anticipated,” it told investors.

Adjusted profit before tax in the first nine months of 2017 fell 18% to £58.6mln from £71.6mln the year before.

Underlying group revenue from organic operations was down 4% on a constant currency basis as growth from the Aerospace Division (up 2%) was offset by lower Flexonics revenue (down 18%) due to weaker truck and off-highway, and oil and gas markets.

The group said that despite the challenging markets in which it operated, the Flexonics division, which makes engine & exhaust flex tubes & bellows, had continued to secure positions on new programmes and platforms, which bodes well for when markets recover.

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