Meggitt increases its 2016 interim dividend by 4.3%

DividendMax Ltd.

Meggitt increases its 2016 interim dividend by 4.3%

Strong order intake supports second half growth expectations.

Reported revenue up 11%, benefiting from foreign currency movements and composites acquisitions. 

Organic revenue decline of 2% reflecting tough comparators in military and further weakness in energy. 

Statutory results significantly impacted by £50.8m negative mark to market of our financial instruments, principally as a result of the recent weakness of Sterling.

Excellent progress made on deployment of the Meggitt Production System (MPS)

o Defective parts per million down 87% and on-time delivery up 14% since inception;

o Site launches now under way at the composites facilities acquired in 2015.

Cost reduction initiative launched in October 2015 completed on schedule; two site closures announced as part of footprint consolidation plan.

Integration of two composites acquisitions in late 2015 progressing well.

Net debt:EBITDA up to 2.6x on a covenant basis, commensurate with typical seasonality of cash flow and phasing of profit. Will be within 1.5x-2.5x target range at year end as previously indicated.

Interim dividend up 4.3% to 4.8p.

Full-year 2016 guidance reconfirmed.

Companies mentioned