Meggitt increases its 2015 interim dividend by 8%

DividendMax Ltd.

Meggitt increases its 2015 interim dividend by 8%

Good organic revenue growth in civil aerospace (+5%) and military (+6%), partially offset by organic decline in energy (-18%).

Operating margin reflects higher expensed R&D and further investment in new product introduction continuing from H2 last year.

Significant investment in future growth: Total R&D spend at 9.9% of revenue.

Excellent progress made on deployment of the Meggitt Production System

o Launched at 36 sites - on course to complete all 45 site launches by the end of 2015.

o Quality improved by 86%; on-time delivery up by 10% since inception

Good working capital management driving a strong free cash flow performance - further improvement expected in second-half.

Share buyback progressing in line with plan - 19.2 million shares purchased in H1.

Strong balance sheet: net debt at 1.5x EBITDA.

Interim dividend increased by 8%.

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