Senior to top expectations with aerospace demand strong

Defence and aerospace firm Senior today said it expected full-year results to be slightly ahead of predictions.

Senior, whose clients include Airbus, Boeing and Siemens, has been boosted by sales of high-margin products such as expansion joints at its Flexonics division, which also makes parts for land and passenger vehicles.

Expansion joints are used in petrochemical plants for the production of gasoline and industrial chemicals.

Analysts forecasted a 31% increase in full-year pre-tax profit, before amortisation and exceptionals, to £63 million, and sales of £574 million.

Senior's aerospace division, which accounted for almost 60% of its half-year sales this year, was performing as expected and demand for large commercial planes at Boeing and Airbus was strong.

Senior sounded a negative note about the market for business jets for which its Capo Industries division caters.

"The regional and business jet markets are showing few signs of improvement and this is causing the Group to review the carrying value of goodwill held in respect of its Capo Industries operation acquired in early 2008," Senior said.