Senior negotiates currency headwind

Admittedly, growth last year was nothing spectacular. Before acquisitions and a big currency benefit, sales grew just 3 per cent, and operating profit by 5 per cent. But commercial aerospace generates 36 per cent of Senior’s revenue and both Airbus and Boeing are working through eight-year order books. Organic sales here grew 15 per cent in 2013, but chief executive Mark Rollins reckons Boeing 787-related revenue alone will soar by 30 per cent in 2014. Rising build rates on the Airbus A350 from mid-year will lift the second half, too. Importantly, Senior has far more content on the A320 neo and B737, which enter service in 2015 and 2017, respectively.

Elsewhere, sales at the small military business might ease slightly, but a return to growth in Europe’s car market and anticipated upturn in demand for North American trucks should drive organic growth at Flexonics. Even after factoring in a £6m currency headwind, Numis Securities expects adjusted pre-tax profit of £103m this year, giving adjusted EPS of 19.8p (2013: £98.1m/19p).