Meggitt H1 pre-tax profits fall but confident on growth

7th Aug 2018 07:45

(Sharecast News) - Engineering outfit Meggitt on Tuesday said first half pre-tax profits fell 39% to £105.2m as a result of lower gains from disposals, but added that it was in good shape to meet full year guidance.Revenue fell to £952.2m from £965.4m. Meggitt said it still expected total organic revenue growth for the year of 4%-6% after upgrading forecasts last month from 2%-4%.Organic revenue grew 9%, reflecting a strong trading performance in civil aftermarket, military and energy.It added that full year margins would be at the lower end of the 17.7%-18% range due to a slower than anticipated recovery at Meggitt Polymers & Composites during the first half.The interim dividend was increased 5.30p a share from 5.05p.Chief executive Tony Wood said organic growth accelerated across the company's civil aftermarket, military and energy end markets."Good progress has been made in the ongoing execution of our strategy in the first half. We have continued to sharpen the strategic focus of our portfolio and taken further steps in the delivery of our operational transformation," he said."Relationships with our key customers are expanding and we have announced our intention to move to a customer-aligned organisation structure from 2019.""These steps will further accelerate our transition to an integrated aerospace, defence and selected energy group."