AGM and Interim Management Statement

For immediate release 20 April 2011

Meggitt PLC

AGM and Interim Management Statement

Meggitt PLC ("Meggitt" or "the Group"), a leading international company specialising in high performance components and sub-systems for the aerospace, defence and energy markets, will hold its AGM later today. At the AGM, an update will be given on current trading, market conditions, and the outlook for the financial year.

This statement covers the period from 1 January 2011 to 19 April 2011 and constitutes Meggitt's first 2011 Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules.

At the AGM, Sir Colin Terry, KBE, CB, Chairman of Meggitt PLC will comment:

"The second half of 2010 saw a strong recovery in civil aerospace markets, and Meggitt achieved a 19% increase in total orders and a 9% increase in total revenues compared with the second half of 2009. As a result, the group achieved underlying profit before tax growth of 9% for the year and delivered a second consecutive year of record net cash generation which underlines the robustness of Meggitt's business model.

Last year also saw significant progress in our transformation programme. We strengthened the business by implementing a new divisional structure and concentrated key resources such as engineering and sales and marketing teams at a divisional level to improve customer responsiveness. We continue to embed common processes and systems across the Group, with ongoing investments through 2011 and 2012. We exceeded our original cost savings target of £50m per annum by the end of 2010 and have increased the target to £57m by the end of 2011.

When we published our Preliminary Results last month, we noted that the Group had good momentum going into 2011. This has continued through the first quarter with order intake up by 15% and revenues up by 12%, both at constant exchange rates, compared with the first quarter of last year. Within the period we saw double digit revenue growth in all market segments, with the training business contributing strongly to the military growth and energy continuing to progress well. This gives us confidence that trading will continue in line with our expectations.

The financial position of the Group has changed during the period as a result of two actions that we have taken. Firstly on 18 January we announced the proposed acquisition of Pacific Scientific Aerospace (PSA) and a related placing of 69.8m shares in the Group, which raised £246m net of costs. The balance of the purchase price is being funded through existing debt facilities. Secondly, we have completed the refinancing of our 2007 banking facility which was due to expire in March 2012. As a result of our strong cash generation, we have reduced the size of the facility from $920m to $700m.

The PSA acquisition brings us complementary capabilities in fire suppression, electric power generation and management as well as enhancing our portfolio of sensors and providing expected synergies of $18m per annum by 2014. The consideration of $685m (to be adjusted for working capital) represents a multiple of 8.7 times 2010 EBITDA, or 7.9 times after taking account of the estimated value of a tax cash benefit arising from the transaction. All necessary regulatory approvals have been received and the purchase of PSA is expected to complete around the end of April this year. 

Based on current market indicators and at constant exchange rates, the Group expects to deliver good organic growth in 2011 in line with our expectations, and is well positioned for the long term."

For further information, please contact:

Meggitt PLC (01202 597597)

Terry Twigger, Chief Executive

Stephen Young, Group Finance Director

Charles Andrews, Group Head of Financial Planning & Analysis

Buchanan Communications (020 7466 5000)

Charles Ryland, Jeremy Garcia or Helen Chan