Senior PLC (LON:SNR) reported ‘record' full-year sales, exceeding the £1bn level for the first time after a strong second half performance, although the engineering group's profits declined due to narrower margins.
The FTSE 250-listed company saw its adjusted operating profit fall by 4% to £82.6mln, down from £85.6mln in 2016, as its operating margin decreased to 8.1% from 9.2%.
The group said margins for its Aerospace division were impacted by the transition from more mature aircraft production programmes, while margins in its Flexonics division reflected some of the challenging market conditions in higher margin segments.
However, Senior's revenue increased by 12% to £1.023bn, up from £917mln a year earlier, exceeding the £1bn level for the first time, driven by sales growth across both its divisions.
David Squires, the engineer's chief executive, commented: “As anticipated, conditions in some of our markets remained challenging, particularly during the first half of the year, so it was pleasing to see market conditions and performance improving, as expected, in the second half of the year.”
He concluded: “Overall, at current exchange rates, the Board expects good progress to be made in 2018 with performance slightly weighted to the second half.”
In late morning trade, Senior’s shares were up 4% at 296.8p.