StockMarketWire.com - Senior, which manufactures components and systems for the aerospace, defence, land vehicle and power and energy market, said it has launched a restructuring programme across the group following challenges in its aerospace and flexonics markets.

In a trading update for the 10 months ended October 2019, the company reported that activity in the flexonics division was broadly in line with expectations, with markets weakening in the last four months as anticipated.

Its aerospace division saw year-on-year sales growth in the ten months of 2019 compared to the previous year, but revenue in the last four months has been lower than expected. The company said this was due to weakness in wide-body commercial aircraft engine demand and 'further impact of the 737 MAX situation as some customers balance inventory to demand'.

Senior said the opportunities currently identified will result in a total exceptional restructuring charge of around £20m, with a significant portion coming from headcount reductions.

Group chief executive David Squires said: 'Senior is focussed on delivering improved returns for shareholders with many of our operating businesses performing well. However, in recognition of the challenges in some of our Flexonics and Aerospace markets, Senior is implementing a restructuring programme to drive improved returns.

'Combined with a slightly lower forecast tax rate and lower central costs, this means that the group's performance in 2019 will be broadly in line with our expectations.'


At 10:01am: [LON:SNR] Senior PLC share price was -10.2p at 177.6p



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