The Group achieved further good growth in 2012:
o Order intake was £1.64bn, giving a book-to-bill ratio of greater than one, underpinning confidence in continuing future revenue growth.
o Revenues increased 10%, of which civil was +7%, energy +45% and military +7%. Group proforma(2) revenues increased 6%.
Underlying earnings per share increased by 13% to 36.2p.
Net debt reduced by 19%, giving a net debt/EBITDA ratio of 1.3x (2011: 1.7x) driven by another year of very strong cash generation.
The Pacific Scientific Aerospace (PacSci) acquisition continues to trade in line with expectations; annual run-rate synergies currently at $20m, ahead of expectations; now expect run rate of $25m by 2014, almost 40% above original plan.
The Group continues to expect organic revenue growth of 6 to 7% on average over the medium term, with mid-single-digit growth in 2013.
Recommended final dividend increased by 12%, resulting in the full-year dividend up 12% to 11.80p.
Terry Twigger, Chief Executive, commented:
"Our business grew strongly in 2012, with revenues up 10% and underlying earnings per share up 13%. PacSci is trading well and we are raising our synergy target again. Our operational improvement initiative is off to an excellent start. We look forward to further good growth in 2013 and beyond.
"As a sign of our continuing confidence in the prospects for the Group, we are recommending an increase in the full-year dividend of 12%.
"I recently announced my intention to step down from the Board at the AGM in May 2013, ahead of my retirement in June, after over 12 years as CEO. During this time I have seen the Group grow from revenues of under £400m to £1.6bn and EPS and market capitalisation grow at 10% per annum and 15% per annum compound respectively. I am very proud of what the team has achieved at Meggitt and am confident this track record will continue under my successor, Stephen Young."
