Meggitt PLC (‘Meggitt’ or ‘the Group’), a leading international engineering company specialising in high performance components and sub-systems for the aerospace, defence and energy markets, today announces unaudited interim results for the six months ended 30 June 2018.
| £m | H1 2018 | H1 20171 | Change | ||
| Reported | Organic2 | ||||
| Orders | 1,087.2 | 968.3 | 12% | 24% | |
| Revenue | 952.2 | 965.4 | (1%) | 9% | |
| Underlying3 | |||||
| EBITDA4 | 197.3 | 202.6 | (3%) | 3% | |
| Operating profit | 150.8 | 161.4 | (7%) | (2%) | |
| Profit before tax | 136.1 | 143.1 | (5%) | (1%) | |
| Earnings per share (p) | 13.9 | 14.2 | (2%) | ||
| Statutory | |||||
| Operating profit | 123.8 | 196.3 | (37%) | ||
| Profit before tax | 105.2 | 172.2 | (39%) | ||
| Earnings per share (p) | 11.7 | 19.6 | (40%) | ||
| Free cash flow | 27.1 | 22.8 | 19% | ||
| Net borrowings5 | 1,032.3 | 1,115.9 | (7%) | ||
| Dividend (p) | 5.30 | 5.05 | 5% | ||
1 Restated for IFRS 9 / 15 / 16.
2 Organic numbers exclude the impact of acquisitions, disposals and foreign exchange.
3 Underlying profit and EPS are used by the Board to measure the trading performance of the Group as set out in notes 4 and 9.
4 Underlying EBITDA represents underlying operating profit adjusted to add back depreciation, amortisation and impairment losses.
5 Net borrowings represent net debt adjusted to exclude lease liabilities.
Tony Wood, Chief Executive, commented:
‘Trading in the first half was strong, with organic growth accelerating across our civil aftermarket, military and energy end markets. As a result, in July we increased our full year revenue growth guidance to 4 to 6%.
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. 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.
As previously indicated, elevated costs at Meggitt Polymers & Composites (‘MPC’) mean that we expect full year operating margins to be towards the lower end of our 17.7 to 18.0% guidance range. We remain focused on delivering further operational improvements at MPC and expect financial recovery to build through the second half and into 2019.
Looking forward, we remain well placed to deliver our 2021 targets to achieve an underlying operating margin of at least 19.9% and to deliver £200m of cash from increasing inventory turns from 2.3x to 4.0x.
The acceleration in growth and our continuing confidence in the prospects for the Group, underpins our interim dividend increase of 5% to 5.3p.’
ENDS
Tony Wood, Chief Executive
Doug Webb, Chief Financial Officer
Adrian Bunn, Vice President, Strategy & Investor Relations
Tel: +44 1202 597597
Deborah Scott, Senior Managing Director
Nick Hasell, Managing Director
Tel: +44 203 727 1340
Headquartered in the United Kingdom, this international group operates in North America, Europe and Asia. Known for its specialised extreme environment engineering, Meggitt is a world leader in aerospace, defence and energy. Meggitt employs more than 9,000 people at over 40 manufacturing facilities and regional offices worldwide.