4th Mar 2014 08:32
LONDON (Alliance News) - Meggitt PLC said Tuesday pretax profit for the full-year declined by 4%
as the group hiked its dividend to demonstrate its continuing confidence in the company's prospects.
The engineering group said pretax profit for the full-year fell to GBP269.4 million from the GBP281.3 million reported last year. Meggitt group revenues were up two percentage points to GBP1.64 billion from GBP1.60 billion in 2012.
Operating profit for the year ended December 31, 2013 rose marginally, up 1% on the previous year to GBP397.2 million from GBP392.1 million. Earnings per share also show a small rise, up 3% or 1 pence to 37.5 pence.
Meggitt said, "We delivered revenue and underlying profit growth despite weakness in some of our markets and some operational - largely supply chain - challenges. These are now under control."
In order to demonstrate its confidence for the group's prospects, Meggitt is recommending a 7% increase to its final dividend to 8.80 pence on the 8.20 pence paid last year, representing a total dividend for the year of 12.75 pence, up 8% on the 11.80 pence paid in 2012.
On a divisional basis, the company said the 2% rise in group revenue saw its Civil Aerospace and Energy business report 3% and 5% rises, respectively, and 'other markets' rose 9%, while revenue from the Military division dropped by 1%.
Revenues from the Civil Aerospace business rose to GBP736.2 million from GBP714.8 million; Energy rose to GBP173.1 million from GBP164.2 million; Military revenues declined slightly to GBP616.4 million from GBP624.7 million last year.
Looking ahead, the firm said it expects organic revenue growth of 6-7% on average over the medium term, with mid-single digit organic revenue growth in 2014 consistent with the guidance issued by the company in November.
Stephen Young, Chief Executive, said, "The Group achieved continued growth in revenue and underlying profit despite some operational and end market-related challenges. The Meggitt Production System, launched in 2013, has made an excellent start, and we are already starting to see improvements in quality and delivery in a number of our businesses.
"We have emerged from an intensive bid cycle resulting in technology sales into a significant number of new aircraft programmes," said Young. "Many involve a full suite of Meggitt capabilities, exceeding the shipset content of their predecessors, and the resulting high level of investment in product development and capacity expansion will serve to deliver further good growth in 2014 and beyond."
Shares in Meggitt were trading up 1.94% at 504 pence per share Tuesday, one of the biggest risers on the FTSE 100.
By Alice Attwood; [email protected]; @AliceAtAlliance
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