Aerospace parts maker Senior raises dividend 30% as profit tops forecasts
By Simone Lobo
March 2 (Reuters) - Britain's Senior SNR.L raised its final dividend by 30% on Monday after annual profit beat expectations, helped by strong demand and better pricing for aerospace components as the engineering firm faces a potential takeover.
Senior, which provides high-tech products to the civil aerospace, defence, land vehicle and power industries, last week said it had received several takeover proposals, with private equity firm Advent among those considering a bid.
"We weren't setting out to sell the company. We think we have a very bright future as an independent PLC, but we have a fiduciary responsibility as a board to consider any offer that comes our way, and that's what we've been doing," CEO David Squires told Reuters.
Squires declined to provide further details on the bidders. Only Advent has so far confirmed its interest in the company.
SENIOR MAINTAINS 2026 FORECAST
The company that builds and supplies components to aircraft manufacturers including Boeing BA.N and Airbus AIR.PA maintained its forecast for 2026, and said the first two months of the year have started well.
Senior reported adjusted operating profit of 63.6 million pounds ($85.1 million) for the year ended December 31, up 20% from last year, and compared with 59.44 million pounds expected by analysts, according to an LSEG poll.
Squires noted that the company's strong cashflow gave it options for shareholder returns or to consider mergers and acquisitions in the future.
NO INDICATIONS OF DISRUPTIONS FROM IRAN CONFLICT
Its shares fell as much as 4.7% on Monday as the larger commercial aviation sector took a hit due to the Iran conflict.
Commenting on the conflict, Squires said that Senior had not seen any early indications of any disruption to manufacturing and supply. Senior does not have any facilities in the Middle East.
Senior proposed a final dividend of 2.15 pence per share, taking total dividends to 3 pence for the year.
"We believe the business is carrying strong momentum into FY26, having exited FY25 on a robust trajectory," Panmure Liberum analyst Alexandro da Silva O'Hanlon said.
($1 = 0.7473 pounds)
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