7th May 2014 08:35
LONDON (Alliance News) - Engineering group Meggitt PLC Wednesday said trading during the first fourth months of 2014 has been broadly in line with expectations, but warned revenue for the year is expected to be impacted by disposals made during 2013 and the effect of the recent strengthening of sterling against the dollar, euro and Swiss franc.
The company also said Tuesday that Chairman Colin Terry intends to retire at the end of the 2015 annual general meeting in a year's time, and it hopes to appoint a successor soon. Meggitt is holding its 2014 AGM on Tuesday.
In an interim management statement for the period January 1 to May 6 ahead of the meeting, Meggitt said it expects mid-single-digit organic revenue growth for the current year, significantly weighted towards the second half, in line with guidance issued with its full-year resulted published in March.
The company said a number of changes have been made within the business.
The power conversion, distribution and storage businesses has been transferred from Meggitt Equipment Group into Meggitt Sensing Systems to leverage the group's electrical and power capabilities under one management team.
In addition, the company's fire protection businesses has been transferred from Meggitt Equipment Group to Meggitt Control Systems to create a "more focused engine accessories business unit".
As a result 2014 results will be reported on this new basis, with prior-year comparators to be provided for both the first half and full-year results.
Megitt said its financial position remains "very strong", and "we expect further improvement driven by our ongoing focus on cash generation".
In a separate note, Tuesday Meggitt said its Heatric heat exchanger business has been awarded a contract for the supply of printed circuit heat exchangers (PCHEs) for Petronas' second floating Liquefied Natural Gas facility (PFLNG 2) rom Japanese engineering company JGC Corp.
Petronas, short for Petroliam Nasional Berhad, is a major Malaysian oil and gas company.
JGC leads a consortium for the development of the PFLNG 2, which will be located in gas fields off the Malaysian coast, with a production capacity of 1.5 million tonnes per year of liquefied natural gas.
"We are delighted that Heatric continues as JGC's heat exchanger partner as it moves offshore to meet the requirements of ground-breaking FLNG projects such as Malaysia's Petronas' PFLNG 1 project, the world's first floating LNG plant located in gas fields more than 1,000 metres beneath the ocean's surface," Meggitt Chief Executive Stephen Young said in a statement.
The financial details for the deal were not disclosed.
Meggitt was quoted at 484.00 pence Wednesday morning, up 3.00 pence or 0.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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