Meggitt (MGGT)

Sector:

Defense and Aeronautics

Index:

FTSE 250

618.40p
   
  • Change Today:
    -6.60p
  • 52 Week High: 643.00
  • 52 Week Low: 458.00
  • Currency: UK Pounds
  • Shares Issued: 776.96m
  • Volume: 1,420,967
  • Market Cap: £4,804.69m
  • RiskGrade: 93
  • Beta: 0.01

Meggitt beats on first-half sales, raises full-year guidance

By Alexander Bueso

Date: Tuesday 06 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Meggitt delivered better than expected half-year topline growth on the back of \"robust\" growth in both civil original equipment and defence, guiding higher for full-year sales.
The manufacturer of flight, power and defence systems also cited a \"good performance\" in its civil aftermarket business as a reason for its strong performance during the half and reiterated its forecast for an improvement in its full-year margins of up to 50 basis points.

Management highlighted Megitt\'s continued investment in differentiated technologies, that factory consolidation and expansion activity was running ahead of plan, reduction in purchased costs sustained and additional sales of non-core units.

\"We continue to make good progress in the operational transformation of the Group, including our centre-led approach to purchasing, footprint rationalisation programme and driving improved operational performance at our Engine Composites product group,\" said company boss Tim Wood.

\"We have strengthened and focused our portfolio, with further investment in priority technology areas such as thermal systems, optical sensing, fire protection and braking systems and the completion of two non-core divestments.\"

For the six months ending on 30 June, the engineer posted an approximately 9.0% jump in organic revenues to reach £1,071m or of 12.0% on an as reported basis, which compared quite favourably with the 3.0% rise that analysts at UBS had penciled-in.

The above resulted in a 2.0% jump in profits before tax on an underlying basis to £145.0m, for earnings per share of 14.7p.

On a statutory basis however, fewer divestments versus a year ago meant that profits before tax declined by 31.0% to reach £73.0m.

THe firm\'s orders increased by 7.0% on an organic basis to £1,193.0m for a book-to-bill ratio of 1.13, alongside especially strong growth in orders from defence customers for a first half book-to-bill ratio of 1.33.

Free cash flow meanwhile improved by roughly 80.0% to £49.0m, with net borrowings 1.0% lower at £1,018m.

In terms of guidance, Meggitt raised its forecast for full-year organic revenue growth to a range of 4.0-6.0%, in comparison to a prior forecast for an increase of 3.0-5.0%, and said the outfit remained on track to deliver a margin improvement of between zero and 50 basis points.

The interim dividend was raised by 5.0% to 5.55p on the back of \"the acceleration in growth and our continuing confidence in the prospects for the group.\"



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Meggitt Market Data

Currency UK Pounds
Share Price 618.40p
Change Today -6.60p
% Change -1.06 %
52 Week High 643.00
52 Week Low 458.00
Volume 1,420,967
Shares Issued 776.96m
Market Cap £4,804.69m
Beta 0.01
RiskGrade 93

Meggitt Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
82.61% below the market average82.61% below the market average82.61% below the market average82.61% below the market average82.61% below the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average
Price Trend
85.01% above the market average85.01% above the market average85.01% above the market average85.01% above the market average85.01% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Income
24.8% below the market average24.8% below the market average24.8% below the market average24.8% below the market average24.8% below the market average
40.00% above the sector average40.00% above the sector average40.00% above the sector average40.00% above the sector average40.00% above the sector average
Growth
57.2% below the market average57.2% below the market average57.2% below the market average57.2% below the market average57.2% below the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average

What The Brokers Say

Strong Buy 6
Buy 1
Neutral 6
Sell 0
Strong Sell 3
Total 16
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Meggitt Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 21-Mar-19
Paid 04-Oct-19 03-May-19
Amount 5.55p 11.35p

Trades for 16-Sep-2019

Time Volume / Share Price
16:49 43,700 @ 618.92p
16:49 43,700 @ 618.92p
16:49 43,700 @ 615.80p
16:49 43,700 @ 615.80p
16:45 53,210 @ 619.72p

Meggitt Key Personnel

CEO Tony Wood

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