Aerospace engineer Senior today cranked up its full year forecasts in expectation that global aviation and energy markets would continue to recover throughout 2021.
The London-listed firm, which recently saw off a takeover bid from private equity firm Lone Star, said it expected group production “to be slightly ahead of our previous expectations”.
The update sent shares in the Rickmansworth-based firm ticking up 0.6 per cent as markets opened this morning.
Compared to last year, Senior said that over the first six months sales were on track to be 13 per cent lower due to the continued travel downturn.
For its aerospace division, sales are down 21 per cent on 2020, it added. The first three months of last year saw normal trading, but since then the industry has been in freefall.
However, pointing to recent announcements from aerospace giants Boeing and Airbus, which it supplies, Senior said that production rates for single-aisle jets such as the A320 are expected to pick up towards the end of the year.
And despite the current shortage of semiconductor chips, it said that heavy-duty truck and passenger vehicle markets are expected to continue to recover in 2021, positive news for its land vehicle division.
The update comes just weeks after Senior’s board rejected a fifth and final offer from Lone Star after a rapid dogfight with the private equity firm.
The final 200p per share offer – valuing the firm at £838.8m – was deemed to “fundamentally undervalue” the firm.
After the bid was rejected, Lone Star quit its pursuit of the firm.