UK's Senior expects to hit medium-term targets ahead of schedule

Aug 3 (Reuters) - British engineering firm Senior on Monday said it expects to achieve its medium-term targets ahead of schedule, citing resilient demand across its aerospace and fluid systems businesses.

Here are some details:

• Senior, which is set to be taken over by a consortium comprising Tinicum and Blackstone in a £1.4 billion ($1.88 billion) deal, is targeting at least double-digit adjusted operating margins in the medium term.

• CEO David Squires told Reuters that most analysts assumed that the targets would be achieved by 2028 or 2029, but the timeline had now moved forward, without specifying the exact timeline.

• Senior reported a 38% growth in adjusted profit before tax at £34.8 million for the half year ended June 30 and maintained its annual forecasts.

• The company, which counts original equipment manufacturers like Boeing and Airbus as its customers, has reported steady demand for aerospace parts.

• Flexonics, a unit which makes cooling systems, fuel‑mixing and distribution equipment, also performed ahead of the company's initial expectations.

• Senior said it was confident of delivering full-year performance in line with expectations upgraded in July.

• While civil aerospace was the main growth driver, the company's defence business, which focuses on military aerospace programmes, has also reported growth due to increased government spending, Squires said.

• Growth was driven mainly by the U.S., but increased spending in Europe would help Senior because it was on programmes like Eurofighter and Rafale from France, the CEO said.

• Commenting on whether the company expects a boost from new British Prime Minister Andy Burnham's plan to increase the UK's defence spending, Squires said it would depend on where the money was spent.

• The company said its takeover is expected to be completed by the end of 2026.

($1 = 0.7428 pounds)

(Reporting by Simone Lobo in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)