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%.
