Senior's interim results hurt by weak sales in Brazil and Europe

Shares in defence, aerospace and energy manufacturing firm Senior fell on Monday due to challenges in its aerospace programmes and weak demand in Brazil and Europe.

Revenue increased slightly by 6% to £820.8m, but profits before tax declined 4% to £80.6m. In constant currency, profits rose 2%.

As a result, basic earnings per share fell 11% to 15.25p.

Senior said it grew its commercial aerospace and North American heavy-duty truck markets, but costs and challenges in the industrialisation of new aerospace programmes affected its full-year results.

Furthermore, the suspension of Bombardier’s Learjet 85 business made Senior to take non-recurring exceptional charges of £1.8m.

The group said the challenges experienced in 2014, including the weak industrial sales in Brazil and Europe, will continue to hurt the company throughout 2015.

Chief executive Mark Rollins said 2014 was “another year of healthy progress” and said it increased its dividend thanks to a strong financial position, healthy outlook and large commercial aircraft.

Despite the challenges, chairman Charles Berry said the outlook “remains encouraging” thanks to new aerospace programmes, economy recovery and expected market share gains in its aerospace and flexonics divisions.

N+1 Singer welcomed the results, which were in line with analysts' expectations. The broker said the outlook was “generally strong” as the group remains "a key pick" in the industrial sector.

“The key risk to the group, in our opinion, remains the ability to gear up successfully for the increasing production rates that are being demanded by Boeing and Airbus, although we would note that management has been aware of this for many years and has been planning ahead."

Shares fell 1.7% to 334.7p on Monday at 14:16.