7th Aug 2018 09:25
LONDON (Alliance News) - Engineering firm Meggitt PLC on Tuesday said it remains well positioned to deliver on its previously upgraded full-year guidance despite reporting a 39% drop in interim profit.
The London-listed company, which manufactures aircraft braking systems, recorded pretax profit of GBP105.2 million for the six months to June-end, down from GBP172.2 million in the year-ago period.
The drop in profit was attributed to lower gains from non-core business disposals and non-cash mark-to-market movements in financial instruments. Disposal gains totalled GBP22.0 million versus GBP53.2 million, while gains on movements in financial instruments totalled GBP2.7 million versus GBP36.5 million.
First half revenue was GBP952.2 million, down from GBP965.4 million. Order intake totalled GBP1.09 billion, up from GBP968.3 million.
The 1.4% decline in revenue was due to adverse currency movements and the impact of disposals and acquisitions, Meggitt said. Organic growth for the period was 9.1%, reflecting a good performance in civil aftermarket, military and energy markets.
Adjusted operating profit - the company's preferred profit measure - was down 7% to GBP150.8 million on lower margins, which stood at 15.8% versus 16.7%.
Meggitt said it remains on track to achieve recently upgraded full-year organic revenue growth forecast range of 4% to 6% following better-than-anticipated trading in the first half and strong order intake. Previously, the company's forecast saw revenue up by between 2% to 4%.
The company has lifted its interim dividend by 5% to 5.3 pence per share, reflecting continued confidence in future prospects for the business, it said.
Shares in Meggitt were down 2.3% at 555.80 pence on Tuesday morning.
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