Strong growth in commercial aerospace and heavy duty land vehicles steered aircraft and auto parts firm Senior to record results. There's more to come as well, given plane makers Airbus and Boeing have an order book stretching out eight years and the group's defence business is holding up, too.
Higher revenues and record adjusted operating margin of 13.8 per cent propelled underlying group pre-tax profit 19 per cent higher to £78m. With commercial planes metaphorically flying off the production line, aerospace sales jumped 14.6 per cent to £382m. Revenues generated from large commercial aircraft grew by 26 per cent, and with operating margins in the aerospace division improving to 15.6 per cent, divisional profits rose from £50m to £59.6m. The defence business chipped in with sales rising 10 per cent, even though military budgets are plunging in the west. Increasing build rates on programmes like the Black Hawk helicopter and launch of the Airbus A400M military transporter and F-35 fighter jet should shield Senior from the worst of the budget cuts.
Flexonics, which includes the group's automotive and industrial arm, saw volumes grow across the board apart from passenger vehicles. Heavy truck and off-roaders stood out, driving sales up 11 per cent to £258m and margins were higher, too.
Investec upgraded 2012 adjusted EPS estimates by 3 per cent to 16.4p (14.05p in 2011).
SENIOR (SNR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 194p | MARKET VALUE: | £780m | |
| TOUCH: | 194-195p | 12-MONTH HIGH: | 201p | LOW: 128p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 14 | |
| NET ASSET VALUE | 69p* | NET DEBT: | 34% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 471 | 34.3 | 7.2 | 0.24 |
| 2008 | 562 | 51.3 | 9.9 | 2.60 |
| 2009 | 540 | 49.6 | 9.8 | 2.60 |
| 2010 | 567 | 52.1 | 10.1 | 3.12 |
| 2011 | 641 | 72.7 | 13.7 | 3.80 |
| % change | +13 | +40 | +35 | +22 |
Ex-div: 2 May Payment: 31 May *Includes intangible assets of £226.8m, or 56p a share | ||||
