Meggitt increases its 2018 interim dividend by 5%
Meggitt 2018 interim results
Organic revenue growth of 9% reflects strong trading performance in civil aftermarket, military and energy. Reported revenue declined by 1% due to currency and non-core divestments.
Full year organic revenue growth forecast raised (on 2 July) to 4 to 6% following better than anticipated trading in H1 and strong order intake with organic book to bill of 1.13x.
Underlying operating profit declined organically by 2% to £150.8m, within which underlying operating profit at Meggitt Polymers & Composites ('MPC') was £2.3m (June 2017 as restated: £21.9m). Excluding MPC, underlying operating profit was up 7% (170 basis point margin improvement).
Statutory operating profit declined by 37% as a result of lower gains from disposals and non-cash mark to market of our financial instruments, compared to the prior period.
Free cash flow increased by 19% to £27.1m (June 2017 as restated: £22.8m) resulting in net borrowings:EBITDA on a covenant basis of 1.9x (June 2017: 2.2x).
Strong progress on key strategic initiatives:
o Completed three further divestments to focus the portfolio, with 70% of revenue now in attractive markets where Meggitt has a strong competitive position;
o Continued investment in differentiated technologies;
o Factory consolidation and expansion activity ahead of plan; work at UK Super Site now underway;
o Moving to a customer-aligned divisional structure from January 2019 in order to accelerate organic growth and realise the operational benefits of our continued journey to becoming an integrated Group.
Interim dividend up 5% to 5.3p reflecting our continued confidence in the prospects for the Group.
Shoe Zone 2018 final results
Avon Rubber 2018 final resultsRead more
Workspace 2019 interim resultsRead more
B&M European value retail 2019 interim resultsRead more
Land Securities 2018 interim resultsRead more
Adept technology 2019 interim resultsRead more
Softcat 2018 final resultsRead more
Bellway 2018 final resultsRead more
Ferguson 2018 Final resultsRead more