Meggitt delivers positive set of results for 2012

Meggitt, the FTSE 100 global engineering group, posted an upbeat set of results for 2012, with revenue and profit up, net debt lower, and a 12 per cent increase in the dividend.

Meggitt, the FTSE 100 global engineering group, posted an upbeat set of results for 2012, with revenue and profit up, net debt lower, and a 12 per cent increase in the dividend.

Underlying pre-tax profit for the year came in at £362.8m, up 12% from £323m the previous year, on revenues of £1,605.8m (2011: £1,455.3m).

Advertisement - Article continues below

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 9.0% to £468.4m from £428.5m the previous year. Earnings per share (EPS) totalled 36.2p, up from 31.9p.

On a statutory basis, profit before tax came in at £292.1m (2011: £226m), while EPS rose from 24p to 31.1p year-on-year.

Net debt fell to 642.5p from 788.4p at the end of 2011, a decline of 19%.

The dividend was increased from 10.50p by 11.80p.

Outgoing Chief Executive Terry Twigger said: "Our business grew strongly in 2012, with revenues up 10% and underlying earnings per share up 13%. PacSci is trading well and we are raising our synergy target again. Our operational improvement initiative is off to an excellent start. We look forward to further good growth in 2013 and beyond.

"As a sign of our continuing confidence in the prospects for the group, we are recommending an increase in the full-year dividend of 12%."

Advertisement - Article continues below

Divisionally, Civil and Military revenue both climbed 7.0%, while energy revenue leapt 45% on the back of heightened demand for Meggitt's printed circuit heat exchangers.

Looking ahead, organic revenue is expected to grow between 6-7% on average over the medium term, with mid-single-digit growth in 2013.

"The outlook for our civil markets remains good, with further growth in aircraft deliveries anticipated in 2013 and beyond," the company said.

"Growth in commercial air traffic is expected to continue, and the link between traffic growth and aftermarket revenues is expected to normalise during the course of 2013, providing a positive outlook for our civil aftermarket revenues.

"In the military market, uncertainties around US DoD spending persist as the potential for sequestration of the defence budget remains. As such, while we remain confident in delivering an average compound organic growth rate of c2% in military over the medium term, we anticipate flat military revenues in 2013 excluding sequestration. If sequestration occurs we would expect to see a modest decline in military revenues."

The share price rose 3.01% to 472.90p by 08:50 on Tuesday.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular


The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020

This chart pattern could be extraordinarily bullish for gold

The mother of all patterns is developing in the gold charts, says Dominic Frisby. And if everything plays out well, gold could hit a price that invest…
1 Jul 2020

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020