Senior pulls planned sale of aerostructures unit

Aerospace engineering Senior pulled the planned sale of its Aerostructures business despite receiving “strong interest” from potential buyers.

The company added that its board members would take a 20% pay cut for three months as the company looked to conserve cash amid the fallout from the coronavirus pandemic impact. Its suspension of full year guidance remained in place.

Senior last December said it was reviewing its options for the aerostructures business, including a possible sale.

“Although Senior received strong interest for the business, the group has determined that it is in the best interests of Senior and its stakeholders for the Aerostructures business to remain within the group,” the company said on Friday.

Senior last month said it was scrapping its dividend to deal with the expected impact on demand from its customers, which include aircraft maker Boeing. The company added that it had sufficient liquidity under its existing committed facilities without using other available funding sources.

“Coronavirus is causing significant disruptions to our end markets and their respective supply chains, with customer demand falling as activity levels have reduced,” the company said on Friday in an update.

It added that strong demand from defence and industrial customers would partially offset declines in civil aerospace, land vehicle and oil and gas markets.

“The group has very supportive lenders, both banks and US private placement investors. With our UK and US banks, we have agreed covenant relaxations in relation to the June and December 2020 testing periods to provide flexibility should this be needed.”

Senior also said it had been making protective face visors use for those treating coronavirus patients since March and increased manufacturing capacity to 10,000 per day due to high demand.