Senior provide engineering products for highly demanding operating environments and have been doing very well this side of the financial crisis, with regular improvements of turnover, profits and dividends.
An interesting statistic thrown into their press releases is employee numbers, which also show a regular increase in workforce over the last 5 years, growing from 4,866 in 2009 to 6,352 in 2013, a healthy 30.5% increase during very tough times.
On 04 August 2014 Senior released first half figures to 30 June which showed a continuum of improving profits, with a 22% increase to £45.1m, on fairly static revenues of circa £400m citing continuing growth in the core aerospace industry as key contributor. This was sufficient for Senior to raise its interim dividend 10% to 1.67 pence per share.
Moreover, during the interim management statement released on 22 October, Senior stated that their aircraft build order book was strong for 9 years at current build rates. There are many industries right now that would love an order book like that!
Senior’s niche is providing engineering products for demanding environments while adhering to ever more stringent emission control legislation. They seem to have carved out great respect from their industry.
Technically, buying Senior shares late January or early February with a view to holding for approximately 4 months to May, has been rewarding in all years since 2008 with an average gain made of 41% (assuming exact timing trough to peak in each year).
Shares currently sit just below their record high of circa £3.20 reached this time last year and have been in a prolonged trading range of circa £2.50 to £3.20 since July 2013.
Should Senior return share performance similar to previous years then a break out into new record high ground will be complete which should help propel shares higher.
Despite their name Senior are not working in a pedestrian industry and the share performance has been far from pedestrian between January and May in all years since 2008.
|Date||Company||Status||Mid Price||Target 1||Target 2||Target 3||Target 4|
|26/01/2015||Senior||Initial write up||£3.177||£3.75||£4.21||£4.41||£4.70|