Book to bill of 0.99x reflecting weakness in energy, and ongoing deliveries in respect of multi-year business jet aftermarket and military orders.
Organic revenue growth of 4% in civil aerospace and flat military revenue offset by weakness in energy.
Reported revenue growth of 6%. Reduced operating margin reflecting move from profit to loss at Heatric, unfavourable product mix, particularly within civil aftermarket, and further expenditure on new product introduction.
Excellent progress made on deployment of the Meggitt Production System (MPS)
o Now launched at all primary manufacturing sites;
o Defective parts per million down 87%; on-time delivery up 14% since inception.
Strong working capital performance drove good improvement in free cash flow even with continuing high levels of investment.
Integration of two composites acquisitions in late 2015 progressing well.
Net debt:EBITDA at 2.3x, within target range following composites acquisitions.
Recommended final dividend up 3% to 9.80p, resulting in full-year dividend up 5% to 14.40p.