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Senior cuts another 12% of its workforce as first-half revenue slumps 30%
StockMarketWire.com
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Component supplier to the aerospace, defence and energy sectors Senior said it had reduced its headcount by another 12% amid a slump in revenue owing to the Covid-19 crisis.
Revenue for the six months through June had fallen 30% and margins where 'significantly' lower, the company said.
Senior said that at the end of June last year it had about 8,200 employees, but had already reduced that number by about 5% between June and December 2019.
The company had cut its headcount by a further 12% in the six months through June 2020.
In addition, about 19% of its workforce remained on furlough.
Restructuring charges were expected to be up to £35m, an increase from the £23m advised at the 2019 full-year results. Cumulative savings would now be around £35m in 2020.
Senior also warned of a 'significant' reduction in the carrying value of certain intangible assets.
Turning to its outlook, it said a significant reduction in civil aerospace production rates was expected to continue in the second half of 2020 and into 2021.
'While it is likely to take several years for air traffic to return to 2019 levels, the demand for air travel is expected to continue to grow in the medium and long term,' Senior said.
In Flexonics, the company said it was not anticipating meaningful improvement in its end markets in the second half of 2020.
'Whilst we expect that the structural long-term drivers of our end markets will remain in place, trading for the rest of 2020 continues to be impacted by Covid-19,' Senior said.
'As a result, guidance for 2020 remains suspended.'
Story provided by StockMarketWire.com
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