Airplane parts supplier Senior (SNR) continues to benefit from the ramp-up of commercial aerospace production. According to departing chief executive Mark Rollins, Airbus and Boeing now boast a combined order book of 12,175 aircraft, which represents a "very healthy" nine years' worth of production at current build rates.
Meanwhile, an 11 per cent increase in US truck sales boosted the group's Flexonics automotive division. The strong North American market, operational improvements and a healthy contribution from recent acquisition Upeca helped the segment grow revenues, adjusted operating profits and margins despite tepid demand for passenger vehicles in economically weaker regions such as Europe and Brazil.
Bombardier's suspension of its Learjet L85 business jet programme, however, was damaging, resulting in a non-cash exceptional charge of £1.8m and a £9.4m goodwill impairment. The lower oil price has also fuelled concerns over the group's exposure to energy markets.
But Mr Rollins, whose seven-year tenure comes to an end this June, he's confident of leaving Senior in very good shape. Demand for commercial aircraft and US trucks are extremely strong, he says, while declines in defence spending are now a thing of the past. Broker N+1 Singer anticipates adjusted EPS of 20.9p this year (from 19.8p in 2014).
| SENIOR (SNR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 333p | MARKET VALUE: | £1.4bn | |
| TOUCH: | 333-336p | 12-MONTH HIGH: | 343p | LOW: 249p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 98p* | NET DEBT: | 26% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 567 | 52.1 | 10.1 | 3.12 |
| 2011 | 622 | 71.7 | 13.7 | 3.80 |
| 2012 | 712 | 83.4 | 16.3 | 4.65 |
| 2013 | 775 | 83.8 | 17.2 | 5.12 |
| 2014 | 821 | 80.6 | 15.3 | 5.63 |
| % change | +6 | -4 | -11 | +10 |
Ex-div: 30 Apr Payment: 29 May *Includes intangible assets of £291m, or 70p a share | ||||
