Aerospace group Meggitt begins the search for a new chairman
THE chairman of aerospace group Meggitt, Sir Colin Terry, has announced he is to retire from the business after a tenure of almost 10 years.
Sir Colin said he intended to step down as soon as a suitable successor could be found and that he would stay with the business until next year’s AGM to ensure a smooth transition period.
At today’s AGM he said: “Having had the privilege of chairing the board of directors for nearly 10 years, I am announcing my intention to retire following the appointment of a suitable successor. It is intended that the appointment will be made with an appropriate transition period in time for me to retire at the end of the 2015 Annual General Meeting.”
In a trading update prior to the meeting, Sir Colin said trading during the first four months of 2014 had been broadly in line with expectations.
“There was further organic growth in civil original equipment (OE), a continuation of the improving civil aftermarket trend we saw during the second half of 2013 and, reflecting a strong prior-year comparator, flat energy revenues. These were offset by a decline in military resulting, in part, from the completion of two significant retrofit contracts during 2013.
“The group continues to expect mid-single-digit organic revenue growth for the year, significantly weighted towards the second half, in line with guidance issued with the 2013 full-year results in March. As previously advised, reported revenue will be impacted by disposals made during 2013 and the effect of the recent strengthening of sterling against our major translation currencies of the US dollar, euro and Swiss franc.”
He said the financial position of the group remained very strong and it expected further improvement driven a focus on cash generation.
Following the successful integration of Pacific Scientific Aerospace in 2013, Meggitt has realigned certain of the acquired businesses into the most appropriate group business units. The power conversion, distribution and storage businesses have been transferred from Meggitt Equipment Group into Meggitt Sensing Systems to leverage the group’s electrical and power capabilities under one management team.
Also, the fire protection businesses have been transferred from Meggitt Equipment Group to Meggitt Control Systems to create a more focused engine accessories business unit.
Meggitt, which has operations in Birmingham and Coventry, also announced the award of a new contract to its energy business.
It said its Heatric heat exchanger business had been awarded a contract by JGC Corporation for the supply of printed circuit heat exchangers for the PETRONAS’ second floating Liquefied Natural Gas facility.
The contract follows last year’s award valued at over $100m for PCHEs for gas processing applications on Petrobras’ floating production, storage and offloading vessels in the Lula and Guará Pre-Salt fields in the Santos Basin, offshore Brazil; and another to supply PCHEs for the Shell Prelude Floating LNG Project, the world’s biggest floating LNG facility.
Stephen Young, Meggitt’s chief executive, said: “Heatric is an established supplier to JGC, which has been responsible for constructing about 30% of LNG plants worldwide, including seven new projects in Malaysia, Australia, Indonesia, Papua New Guinea, Russia, and Canada.
“We are delighted that Heatric continues as JGC’s heat exchanger partner as it moves offshore to meet the requirements of ground-breaking FLNG projects such as Malaysia’s PETRONAS’ PFLNG 1 project, the world’s first floating LNG plant located in gas fields more than 1,000 metres beneath the ocean’s surface.”
