Meggitt increases its 2014 full year dividend by 8%

DividendMax Ltd.

Meggitt increases its 2014 full year dividend by 8%

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.

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