Senior (SNR) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results with revenue up 5% and adjusted operating profit up 14% year-over-year from continuing operations, driven by robust demand in core markets and operational improvements.

• Announced binding agreement to sell Aerostructures business for up to £200 million, with proceeds to reduce net debt and fund a £40 million share buyback.

• Trading performance robust across continuing operations, especially in Aerospace, Flexonics, and Spencer Aerospace.

• Board approved a 13% increase in interim dividend to 0.85p per share, reflecting confidence in financial strength and future prospects.

• Sustainability remains a strategic focus, with top CDP ratings for climate and supplier engagement.

Financial highlights

• Revenue from continuing operations rose 5% at constant currency to £371.2 million; adjusted operating profit up 14% to £31.2 million; margin up 60bps to 8.4%.

• Adjusted EPS increased 8% to 5.07p; reported profit up 35% to £21.0 million.

• Free cash flow grew 43% to £10.6 million; cash conversion improved to 66%.

• Total group revenue (including Aerostructures) up 4% to £519 million; adjusted operating profit up 26% to £32 million.

• Adjusting items of £45.8 million related to Aerostructures sale, including £39.7 million impairment and £3.6 million disposal costs.

Outlook and guidance

• Full-year expectations for both continuing and discontinued businesses remain unchanged at constant currency; trading in line with expectations.

• Aerospace and Flexonics divisions expected to maintain or improve performance; Aerostructures operating profit guidance at £9–11 million.

• Medium-term targets: double-digit group operating margins, Aerospace margins at least mid-teens, Flexonics 10%–12%, ROCE 15%–20%, and operating cash conversion >85%.