Aerospace and defence manufacturer Senior posted a trading update in line with expectations, largely driven by a big jump in sales for the aerospace side of its business as demand for commercial planes has boomed.
Revenue rose by seven per cent in the three months ended March 2024 compared to the same time last year, when changes in currency value were excluded.
The London-listed firm makes high-tech parts for planes, tanks, and power systems. Shares jumped as much as eight per cent when the market opened on Friday before retreating slightly.
Aerospace revenue grew by 12% year-on-year, driven by growth in commercial aerospace.
It said it expected “good growth” from its aerospace business this year due to the increasing number of aircraft built. Senior makes the parts for both civilian and military planes.
“Regarding the 737 MAX, we have agreed sensible schedules with Boeing and other customers that take into account ongoing production demand, and current customer inventory levels,” Senior said.
“We have mitigated the impact of lower 737 MAX production with growth in other business.”
“Overall, the Board anticipates good growth for the Group in 2024 in line with its expectations,” it added.
Yesterday, Senior said it was granted a five-year extension on their contract with Spirit AeroSystems Holdings. It means they will continue to supply parts for Boeing planes like the 777, 777-9, and 737 MAX family. The contract starts in January 2026 and is worth around $130m (£104m) over the five years.
Commenting on the award, Launie Fleming, chief executive of Senior Aerospace, said: “Spirit AeroSystems is an important customer to Senior who values our high levels of quality and on-time delivery.
“As aircraft build rates continue to increase, we are delighted to be awarded this 5-year contract extension for precision, complex aerostructure components.”