Senior (SNR) H2 2024 earnings summary

Executive summary

• 2024 trading was in line with revised expectations, with strong free cash flow and increased group sales and profits despite Boeing and Airbus supply chain disruptions.

• Group sales increased 4% year-over-year on a constant currency basis, with adjusted operating profit up 5% and free cash flow up 12%.

• The board approved a final dividend of GBP 1.65 per share, bringing the full-year dividend to GBP 2.4 per share, up 4% year-over-year.

• Strategic review and advanced sale negotiations for the Aerostructures business are underway.

• Sustainability achievements include a 33% reduction in Scope 1 and 2 emissions since 2018 and a third consecutive A rating from CDP.

Financial highlights

• Revenue grew 4% on a constant currency basis to GBP 977 million, with adjusted operating profit up 5% to GBP 46.5 million.

• Adjusted profit before tax was GBP 33 million, and adjusted EPS was GBP 7.17, both lower year-over-year due to non-recurring 2023 tax/interest benefits.

• Free cash inflow was GBP 17.3 million, an improvement over last year.

• Net debt (ex-leases) rose to GBP 153.4 million, with net debt to EBITDA at 1.8x.

• Return on capital employed decreased by 30bps to 6.8%.

Outlook and guidance

• Board anticipates good growth for 2025, in line with expectations.

• Aerospace expected to see growth from higher aircraft build rates, efficiency, and improved pricing; H2 to be stronger than H1.

• Aerostructures forecast to move from loss in 2024 to GBP 9–11 million operating profit in 2025, mostly in H2.

• Flexonics and land vehicles expected to perform similarly to 2024, with H2 stronger due to new program ramp-ups.

• Strategy focused on pure play fluid conveyance and thermal management, with sector-leading sustainability.