Senior (SNR) H2 2011 earnings summary

Executive summary

• Record 2011 results: revenue £640.7m, up 13%; adjusted profit before tax £78.0m, up 19%; adjusted operating margin reached a record 13.8%.

• Organic revenue grew 12% at constant currency; both Aerospace and Flexonics delivered higher sales, adjusted operating profit and record operating margins.

• Strong cash generation funded £68.6m of acquisitions and higher growth investment; year-end net debt was £93.0m, or 0.8x EBITDA.

Financial highlights

• Revenue £640.7m, up 13% reported and 12% from organic operations at constant currency; adjusted operating profit £88.3m, up 17%.

• Reported operating profit £83.0m vs £62.2m; adjusted profit before tax £78.0m, up 19%, and reported profit before tax £72.7m, up 40%.

• Profit for the year £55.0m vs £40.4m; basic EPS 13.68p vs 10.11p and adjusted EPS 14.55p, up 21%.

• Free cash flow £55.6m vs £58.8m; net cash from operating activities £77.1m vs £70.2m.

Outlook and guidance

• Trading started 2012 in line with Board expectations; prospects for the remainder of 2012 and beyond were described as encouraging.

• Boeing and Airbus expected combined 2012 deliveries ~15% above 2011, with build rates forecast to rise at a healthy pace over the following 2–3 years.

• 2012 capital expenditure expected to increase; level dependent mainly on large commercial aircraft build-rate increases and new programme wins in both divisions.

• Proposed full-year dividend of 3.80p per share, up 22%; final dividend 2.65p, subject to shareholder approval.