8th Aug 2016 10:23
LONDON (Alliance News) - Hedge fund Elliott International Ltd has taken a 5% stake in Meggitt PLC, crossing the 5% threshold last Wednesday, the UK engineering firm said in a stock-exchange filing Monday.
Elliott now has a stake of 5.2% in the FTSE 250 engineer. Elliott International is the UK operations of Elliott Management, a US-based activist investor.
This comes after Meggitt reported last Tuesday a fall in pretax profit for the first half of 2016. The company reported pretax profit for the half-year to the end of June was GBP46.6 million, a 60% drop against the GBP115.8 million reported a year earlier due to writedowns on mark-to-market financial instruments, primarily resulting from the fall of sterling after the Brexit vote.
However, revenue rose 11% to GBP882.9 million from GBP793.7 million, helped by beneficial currency movements and by a boost from composites segment acquisitions Meggitt made.
Shares in Meggitt were up 7.6% at 445.90 pence Monday morning, the best performer in the FTSE 100.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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