Senior shares rocket on profit forecast boost
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Seniors stocks as an aerospace and defense manufacturer shoot up earnings expectations on demand for ‘flexonics’
- Expected full-year pre-tax profit ‘above’ forecast of £16.2m to £18m
- Senior sees strong performance within the flexonics and aerospace divisions
FTSE 250 aerospace maker Senior has raised earnings expectations after trading beat expectations at the end of 2022.
Senior, which makes components and systems for the aerospace and defence, land vehicle and power and energy markets, told investors on Tuesday that adjusted pre-tax profit for 2022 is expected to be “above the top” of an analyst forecast of £16.2 million. to £18 million.
The group, which will publish its annual results on Monday, February 27, said it had delivered particularly strong performances in its flexonics and aerospace divisions at the end of last year.
Senior supplies parts such as airframes and mounting tubes for engines to companies such as Boeing and Airbus
senior shares rose 11.4 percent in early trading to 152 pence, bringing year-over-year gains to 16.8 percent. They slid back slightly, trading 9 percent higher at 2:45 p.m.
However, senior stocks have lost 45.4 percent of their value over the past five years, after a major pandemic exacerbated the decline in the years leading up to Covid-19.
Senior of Rickmansworth, which supplies components such as airframes and engine mounting tubes to companies such as Boeing and Airbus, performed particularly well in its Flexonics division.
Flexonics supplies specialized components to industries such as oil and gas refining and steel, which deal with high temperatures and complicated pressure piping systems. Senior said performance in the department was “driven by strong customer demand in the land vehicle and power and energy markets.”
It added: “In particular, the demand for heavy trucks and the level of maintenance and overhaul in terms of power and energy have improved since the last trade update.”
Senior started paying dividends again in August after a break of more than two years following a recovery in air traffic that led to a 16 per cent increase in revenue to £402.2 million in the first half.
The group was previously troubled by a halt to global travel due to the pandemic, and before that Boeing’s decision to halt production of the troubled 737 Max in January 2019, following two crashes that killed 346.