Senior boosted by aerospace recovery

 
City A.M. Reporter
Aero engineer Senior reported a 17 per cent rise in first-half profit, helped by a ramp up in production by its largest planemaking customers who are seeing continued growth in demand for commercial aircraft.

Senior, which makes components and systems for the aerospace, defence, land vehicle and energy markets, posted an adjusted pre-tax profit of £38m on revenues 10 per cent higher at £315.6m for the six months to the end of June.

Commercial aircraft demand is picking up as air travel recovers and funds return to the leasing market. Soaring oil prices, meanwhile, are forcing airlines to renew fleets with more fuel-efficient planes. As such, planemakers Boeing and Airbus, two of Senior's largest customers, have both increased production rates in recent months.

Senior, which increased its interim dividend by 15 percent to 1.15 pence, said the outlook was encouraging.

"The large commercial aerospace industry is anticipated to be strong for a number of years with Boeing and Airbus increasing build rates and the Boeing 787 due to start delivery to customers in the third quarter of this year," Senior Chairman Martin Clark said.

"Elsewhere across the group, the outlook appears generally positive."

Revenue at Senior's aeropace business, which accounts for around 60 per cent of group sales, rose 15 percent to £23.8m, helped by increased production of Boeing's 787, Lockheed Martin's C-130J military transporter and Joint Strike Fighter aircraft, as well as the acquisition of Damar.

The unit makes aircraft parts such as the engine pylon, struts, and wing box accounts.