Senior PLC - Market Update
Ahead of its Annual General Meeting later today,
Coronavirus (COVID-19) update
The Health and Safety of our employees remains our highest priority. We are providing best practice guidelines to all of our businesses and are following national and local government instructions and guidance in the multiple jurisdictions in which we operate. We continue to pay special attention to those in our community who are most vulnerable and we are doing all that we can to support our employees during this unprecedented crisis.
Daily oversight of employee welfare and business continuity plans is being undertaken by senior executives, chaired by the Group Chief Executive Officer.
The actions taken have proved effective and have allowed all of our operations to remain open, other than a small number where national governments have mandated a total shutdown.
Coronavirus (COVID-19) is causing significant disruptions to our end markets and their respective supply chains, with customer demand falling as activity levels have reduced. As a consequence, it has been necessary to furlough significant numbers of employees in those businesses most affected by the downturn. Where government assistance is not available to financially support furloughs, for example in
At the same time, the Executive Directors, the Chairman and the Non-Executive Directors are reducing their salaries and fees by 20% for a three-month period and the situation will be reviewed at the end of that period. The other members of the Executive Committee and senior leaders throughout the business are also taking a reduction in their salaries.
Until the extent and duration of the disruption is better understood, the Group continues to focus on taking actions to conserve cash to manage through the crisis, including curtailing capital expenditure, tightly managing working capital and implementing further cost cutting actions. Around 17% of the Group's employees are currently on furlough and the restructuring activities, which commenced last year, are further adapting to the changing end market conditions.
The Group has very supportive lenders, both banks and US private placement investors. With our
We have undertaken extensive scenario testing for 2020, based on a variety of end market assumptions, while taking account of appropriate cost reduction and cash preservation mitigating actions. Against this set of assumptions, our assessment shows that the Group has sufficient liquidity under its existing committed facilities without utilising other funding sources that would be available to it.
Update on strategic review of Aerostructures business
Senior support to health and care workers
Senior is a long-term term supplier of parts in numerous medical applications, for example critical parts for ventilators, and we have explored other ways in which we can support frontline medical staff. Specifically, since March we have been providing many thousands of
Trading for the three months ended
We are continuing with the restructuring plan, which is delivering the expected benefits and we remain focused on taking further actions as appropriate to manage the business through the current crisis.
Our defence and industrial power & energy aftermarket businesses are robust which is helping to partially offset the impact of the coronavirus pandemic on civil aerospace, land vehicle and oil & gas markets.
While macro-economic recovery is expected over the medium-term, the pace and duration of recovery remains unknown. Therefore, guidance for 2020 remains suspended.
This announcement contains inside information.
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Group Finance Director,
+44 (0) 1923 714 725
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Director of Investor Relations,
+44 (0) 1923 714 722
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+44 (0) 7796 708 551
Senior is an international manufacturing group with operations in 13 countries. It is listed on the main market of the
This announcement contains certain forward-looking statements. Such statements are made by the Directors in good faith, based on the information available to them at the time of the announcement, and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.
This information is provided by RNS, the news service of the
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Market Cap: £292.12 m
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