7th Dec 2015 07:15
LONDON (Alliance News) - Engineer Meggitt PLC on Monday said trading has remained in line with its revised guidance in October and November, though it said the negative trends seen in the second half are set to continue into 2016.
The group, which makes components and sub-systems for aerospace, defence and energy markets and which will be demoted from the FTSE 100 later this month, said trading in October and November has been in line with the guidance given in its October trading update, when it issued a profit warning driven by severe weakness in energy end markets.
Turning to 2016, Meggitt said it expects organic revenue growth, stripping out the effects of acquisitions, disposals and foreign exchange movements, to be in the low to mid-single digits for its civil original-equipment, civil aftermarket and military businesses, but with continued weakness in its energy business.
This will result in organic revenue growth for the group in the low single digits, the company said, with reported revenue growth to be driven higher by the acquisitions made earlier this year, including the purchase of the composites business of FTSE 250-listed rival Cobham PLC.
Still, the negative revenue mix effects seen in the second half of 2015 will stay in place into 2016, though should be broadly offset by cost-cutting, the group said.
Meggitt said it remains confident it will deliver organic revenue growth ahead of the markets in which it operates over the medium term.
By Sam Unsted; [email protected]; @SamUAtAlliance
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