23rd Feb 2016 07:36
LONDON (Alliance News) - Aerospace and defence components and sub-systems engineer Meggitt PLC on Tuesday said its pretax profit edged higher in 2015 thanks to growth in revenue and said it is confident on its prospects for 2016 despite experiencing a tough past year.
The group, which was demoted from the FTSE 100 to the FTSE 250 in 2015, said its pretax profit for the year to the end of December rose to GBP210.2 million in 2015 from GBP208.9 million in 2014, while revenue rose to GBP1.65 billion from GBP1.55 billion.
The rise, however, belied a tough operating environment for the group, as orders slowed over the course of the year from its energy business, due to the sharp slowdown in oil and gas markets. Revenue for Meggitt's aerospace business grew in the year, but military revenue was flat.
The group's operating margin also came under pressure, hit by a weak sales mix in its civil aftermarket sales, more spending on new products and a tough environment for its Heatric heat exchangers unit.
Still, Meggitt said it is confident on its outlook for the coming year and pushed its final dividend up to 9.80 pence per share, up 3.0% year-on-year, to send its total dividend up 5.0% to 14.40p.
"2015 was a challenging year for the group, with volatility across a number of our end markets affecting financial performance. However, we are confident that we are taking the right actions in the context of our long-cycle business," said Chief Executive Stephen Young.
By Sam Unsted; [email protected]; @SamUAtAlliance
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