Business
Q3 Trading Update
Q3 Trading Update.
About this update from Senior Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0131E\n Senior PLC\n 03 November 2020\n \n \n \n \n 3 November\n 2020\n \n \n \n \n \n Senior plc: Q3 Trading Update\n \n \n Senior plc (\"Senior\" or the \"Group\"), an international manufacturer of high technology components and systems, principally for the worldwide aerospace & defence, land vehicle and power & energy markets, today issues this trading update for the nine-month period ended September 2020 (the \"Period\").\n \n \n Trading update\n \n \n At our 2020 Interim Results we highlighted that the lower level of activity seen in Q2 2020 due to the impact of COVID-19 on some of our key end markets was likely to persist for the remainder of 2020; and that remains our view.\n \n \n In Aerospace, for the Period, sales were 36% lower than for the same period in 2019 on a constant currency basis. On a quarterly basis, Aerospace sales declined 22% in Q1, 40% in Q2 and 45% in Q3, year-on-year. This was as expected, with our 2020 Aerospace revenues significantly reduced as a result of the ongoing impact of COVID-19 and the 737 MAX situation. On a sequential basis, Aerospace sales in Q3 declined 18% relative to Q2 reflecting the ongoing production cuts by civil aerospace original equipment manufacturers (OEMs) along with the rebalancing of inventory throughout the supply chain; an activity that is continuing.\n \n \n In Flexonics, sales for the Period were 27% lower than for the same period in 2019 on a constant currency basis. On a quarterly basis, Flexonics sales declined 23% in Q1, 33% in Q2 and 25% in Q3 year-on-year. As we expected, our customers continued to be impacted by the challenging end market conditions. On a sequential basis, Flexonics sales in Q3 were 1% below Q2. Whilst the performance in Q3 benefited from improved conditions in the heavy-duty truck and passenger vehicle markets compared to Q2, this was offset by continuing weakness in the oil & gas sector.\n \n \n Financial position\n \n \n The Group continues to focus on cash preservation and Q3 was in line with expectations. Headroom on our committed borrowing facilities was £142m at the end of September 2020. We are confident that at the year-end we will have sufficient liquidity under our existing committed facilities and that we will remain comfortably wit...