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Interim Results

Meggitt revenue up

01 August 2017 07:21

Meggitt reported revenue growth of 10%, which benefitted from currency movements.

The company reiterated full-year guidance and medium term targets for margin and cash.

HIGHLIGHTS

- Flat organic revenue reflects 2% growth in civil aerospace and flat military revenue, partially offset by the expected, continued weakness in energy (down 14%)

- Underlying operating profit growth of 7% includes currency benefits. Underlying operating margin reduced, as expected, to 18% reflecting primarily the stronger second half weighting of revenue and phasing of expensed research and development costs

Strong momentum on key strategic initiatives:

Good progress on the Meggitt Production System (MPS), particularly in respect of inventory where a focus at our more advanced sites has started to yield benefit

- Further improvement at Customer Services & Support (CSS), where we have acquired additional MRO capabilities and secured long term agreements to support airline customers

- Contract wins, including award of the braking system for the A321neo and additional content on both 777X and C919

- Continued focus on actively managing the portfolio, having completed the sale of three non-core industrial businesses to Amphenol

- Manufacturing footprint reduced to 48 sites following closure of the Corona site and disposals

- Strong free cash in-flow of £19m (June 2016: £33m outflow)

Healthy balance sheet with net debt:EBITDA on a covenant basis of 2.2x (June 2016: 2.6x)

- Interim dividend up 5% to 5.05p

Story provided by StockMarketWire.com

Related Company: MGGT

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