Senior Plc (LSE:SNR) said its proposed acquisition by a consortium backed by Tinicum and Blackstone remains on course to complete before the end of 2026 after obtaining regulatory clearance in 10 of the 12 jurisdictions required for the transaction. The update came as the aerospace and industrial engineering group reported a strong increase in first-half adjusted profit, although earnings, margins and earnings per share fell short of S&P Global Visible Alpha consensus forecasts.
Revenue Beats Expectations Despite Earnings Shortfall
Adjusted profit before tax for the six months ended 30 June increased to £34.8 million from £25.3 million a year earlier. However, this was £1.75 million, or 4.8%, below the £36.55 million consensus estimate compiled from Peel Hunt and PanLib forecasts.
Revenue reached £390.8 million, exceeding the market expectation of £371.2 million by £19.6 million, or 5.3%, supported by a 13% constant-currency increase in Aerospace sales.
Adjusted operating profit rose to £39.1 million but came in £2.7 million, or 6.5%, below the consensus forecast of £41.8 million. The adjusted operating margin was 10.0%, compared with analysts’ expectation of 11.26%, while adjusted diluted earnings per share of 6.46 pence missed the 7.08 pence consensus by 0.62 pence, or 8.8%.
Aerospace Delivers Strong Performance
Senior’s Aerospace division continued to outperform, generating revenue of £231.4 million compared with market expectations of £208.9 million. Growth was driven by increased commercial aircraft production, stronger defence demand and expanding sales into adjacent markets such as semiconductor manufacturing equipment.
Adjusted operating profit for Aerospace reached £30.3 million, comfortably ahead of the £21.6 million forecast. The division’s adjusted operating margin improved by 270 basis points to 13.1%.
In contrast, Flexonics revenue totalled £160.2 million, slightly below the £162.8 million consensus estimate as weaker downstream oil and gas demand offset stronger heavy-duty truck sales in North America. Adjusted operating profit, excluding the China joint venture, was £18.2 million, narrowly below the £18.4 million forecast.
Acquisition Costs Weigh on Reported Results
On a statutory basis, Senior reported a pre-tax loss of £5.6 million compared with a pre-tax profit of £22.8 million in the same period last year. The decline reflected £38.9 million of adviser fees and employee-related remuneration costs linked to the proposed acquisition by Zeus UK Bidco, with £34.7 million of those costs contingent on the transaction completing.
Group chief executive David Squires said the business had “performed very strongly in the first half of 2026,” adding that the board expects the Tinicum- and Blackstone-backed acquisition to complete before the end of the year.
The takeover, which is being implemented through a court-approved scheme of arrangement, received support from 99.7% of shareholders at a meeting held on 26 May.
Cash Flow Improves as Guidance Remains Unchanged
Senior generated free cash flow from continuing operations of £16.3 million during the first half, compared with £10.6 million a year earlier.
Net debt, excluding capitalised lease liabilities, stood at £89.4 million at 30 June, equivalent to leverage of 0.9 times net debt to EBITDA. The company’s book-to-bill ratio was 1.23 for the period.
The board did not declare an interim dividend, noting that no shareholder distributions will be made before completion of the acquisition. Management also reaffirmed the full-year guidance issued in its post-close trading update in July.
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