Engineering firm profits take 53 per cent tumble following Boeing 737 MAX issues

A UK engineering firm has reported a profit drop of more than 50 per cent.

Senior, which focuses on aerospace, suffered a 53 per cent drop in profit before tax in 2019, going from £61.3m to 28.7m – a decrease of more than £32m.

However, the firm’s revenue increased by 3 per cent, increasing from £1082.1m to £1110.7m.

The company owns UPECA in Malaysia, which is currently in a five-year deal with Spirit Aerosystems – the manufacturers of the Boeing 737 MAX fuselage.

In today’s report, the firm said that the civil aerospace market as a whole has been impacted by the grounding of the Boeing 737 MAX.

David Squires, chief executive of Senior, commented: “Senior delivered robust full year results for 2019 with adjusted earnings per share growth and a strong free cash flow performance.

“This result has been achieved in a period where the business has faced challenges caused by the grounding of the Boeing 737 MAX fleet.

“It is clear that our performance in 2020 will continue to be affected by the 737 MAX situation and the Company is taking all necessary actions to mitigate the impact.”

Senior also has a 49 per cent stake in Senior Flexonics Technologies, which is based in Wuhan, the centre of the COVID-19 outbreak.

“We are closely monitoring the development of the coronavirus (COVID-19), including the potential impact of any macroeconomic disruption on our end markets, our supply chain and those of our customers.

“However, we entered 2020 with a robust balance sheet and a continued focus on cost, efficiency and cash generation.

“We are taking firm actions to restructure the business and have every confidence in returning to growth in 2021.”