Strong order intake: book to bill of 1.03x supports growth in 2015 and beyond. Record expenditure on R&D and new product introduction underpins future revenue growth.
Organic revenue growth of 6% in civil aerospace offset by declines in military and energy. Total H2 organic revenue growth stronger at 3%.
Reported revenue adversely impacted by currency (£57m) and disposals of non-core businesses (£26m). Reduced operating margin resulting from unfavourable revenue mix and increased investment.
Excellent progress made on deployment of the Meggitt Production System (MPS)
o Now launched at 29 sites, 71% of manufacturing footprint;
o Defective parts per million reduced by 84% since inception.
Good improvement in free cash flow even with continuing high levels of investment.
Commenced share buyback programme to optimise capital structure.
Strong balance sheet: net debt at 1.2x EBITDA.
Recommended final dividend up 8% to 9.50p, resulting in full-year dividend also up 8% to 13.75p.
