logo-loader
Senior Plc

Senior shares gain as it reports record revenue although profits decline on narrower margins

Senior's revenue increased by 12% to £1.023bn, up from £917mln a year earlier, exceeding the £1bn level for the first time

engineering
Senior said its revenue increase was driven by sales growth across both its divisions

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.

READ: Senior raises profit guidance after strong performance in November and December

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.

Quick facts: Senior Plc

Price: £2.01

Market: LSE
Market Cap: £843.03 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Rockfire Resources' David Price discusses Brigalow Alluvial...

Rockfire Resources PLC's (LON:ROCK) David Price tells Proactive London's Andrew Scott they've been getting a better understanding of an alluvial gold deposit next one of their main assets in Queensland. Calculations made in 1986 on an area known as Brigalow Alluvial Goldfield has suggested...

2 days, 11 hours ago

2 min read