Aerospace supplier’s first half revenue reaches over £1bn mark
Aerospace supplier Meggitt, which is building a £130m HQ in Coventry, saw revenue rise to over £1bn in the first half of 2019 which it attributed to “ robust growth” in both civil original equipment and defence divisions.
The company reported a 12% rise in group revenue of £1,070.9m for the first half of 2019, up from £952.2m in the same period last year.
The company posted a 31% fall in first-half profit of £73m, down from £105m owing to lower gains from asset sales, but underlying profit before tax rose to £145m from £136m.
Orders grew from 1.2bn from just over £1bn.
Free cash flow increased by 80% to £49m inclusive of the sale of land and buildings associated with the company’s move to the Ansty Park site in Coventry, which will provide a base for up to 1,000 employees and will serve as the new home for Meggitt’s international headquarters.
Tony Wood, chief executive, said: “Trading in the first half was strong, with robust growth in both civil original equipment and defence and good performance in our civil aftermarket business, despite an easing in air traffic growth and lower demand for initial provisioning spares following the grounding of the 737 MAX. As a result, we have increased our full year organic revenue growth guidance to 4 to 6% and remain on track to deliver a margin improvement of between 0 and 50 basis points in 2019.
“We continue to make good progress in the operational transformation of the Group, including our centre-led approach to purchasing, footprint rationalisation programme and driving improved operational performance at our Engine Composites product group. We have strengthened and focused our portfolio, with further investment in priority technology areas such as thermal systems, optical sensing, fire protection and braking systems and the completion of two non-core divestments.
“The acceleration in growth and our continuing confidence in the prospects for the Group underpins our interim dividend increase of 5% to 5.55p.”
The company also announced this morning that Philip Green, executive director, commercial and corporate affairs,will retire at the end of December.
Green has served on the Board for 18 years and is currently responsible for legal, commercial, trade compliance and government relations matters.
Sir Nigel Rudd, chairman, said: “The board thanks Philip for his commitment and tremendous contribution over the past 25 years working for Meggitt, and particularly during his 18 years as a board director. Philip has played a significant role in the growth and development of Meggitt through his management of legal, trade compliance, commercial and other matters over the years. We wish him all the best in his retirement.”
