LONDON (ShareCast) - (Sharecast News) - Senior hailed a strong trading performance on Monday as it posted a jump in full-year operating profit and said its order book remains healthy.
In the year to the end of December 2022, adjusted operating profit rose to £28.5m from £6.1m the year before, with revenue up 29% at £848.4m. The group said it swung to a pre-tax profit of £20.1m from a loss of £1.9m a year earlier.

Revenue in the aerospace division rose 17.5% year-on-year on a constant currency basis to £553.6m, "reflecting the overall recovery in demand". Senior highlighted a ramp-up in civil aircraft production rates, growth from semi-conductor equipment markets and ramp-up in space programmes reflecting end market growth. This more than offset a decline in defence, it said.

The civil aerospace sector had the strongest growth during the period, with Senior's sales up by 31.6% on the year. The company pointed to a significant ramp-up in aircraft production rates from the OEMs, resulting in rates being higher in 2022 than in 2021. This was driven by single aisle aircraft including regional and large business jets, with widebody production rate increases announced towards the end of the year.

Chief executive David Squires said: "We have delivered a strong set of results for 2022, overcoming what was a difficult macroeconomic environment. We significantly improved profitability, generated excellent free cashflow, strengthened our balance sheet and continued to make very good progress on our sustainability goals, maintaining our sector leading position.

"As we start 2023, our order book is healthy, reflecting favourable market dynamics, with commercial aerospace recovery in full swing with other important markets remaining buoyant. Demand is currently holding up well, though we remain mindful of the potential impact of the ongoing supply chain pressures in aerospace, as well as the broader macro-economic situation and geopolitical uncertainty."

At 1325 GMT, the shares were up 4.9% at 170.40p.

Jefferies, which reiterated its 'buy' rating on the shares and lifted the price target to 195p from 180p after the results - said they were ahead of its and consensus estimates, with "strong" year-over-year top- and bottom-line growth.

"We see multi-year recovery potential for Senior, and the MT/LT growth prospects also appeal. Indeed, we have growing conviction in the group's outlook, with significant transition potential ahead," it said.

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