Meggitt shares fly after revenue hit nearly £2 billion in 2016

Meggitt

Shares in engineering company Meggitt soared over 10 percent on Tuesday, after revenue hit nearly £2 billion over the course of 2016.

Pre-tax profit fell to £195.5 million from £210.2 million the year before, but revenue climbed higher to £1.99 million.

Underlying profit before tax grew to £352.1 million from £310.3 million in 2015, with a 4 percent boost in organic revenue growth in the civil aerospace sector.

In a statement disclosing its full-year results, Meggitt attributed the stronger than expected figures to positive currency movements, as well as the completion of composite acquisitions at the end of 2015.

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Stephen Young, Meggitt’s chief executive, said: “2016 trading was very much in line with our expectations and the stronger second half performance gives us good momentum going into 2017.

“We are past the peak of engineering investment on the many new aircraft programmes that have recently entered, or are entering, into service.  Our increased content on these new programmes will drive higher revenue in the coming years.

“We are now focusing our resources to accelerate progress on our key operational initiatives which we expect will deliver significant improvement in operating margin and cash conversion by 2021.”

Meggitt is a global engineering company specialising in high-performance components and sub–systems for aerospace, defence and energy markets. Headquartered at Bournemouth Airport in Dorset, it is a FTSE 250 company listed on the London Stock Exchange.

The company also confirmed to investors a final dividend of 10.3p, resulting in a full year dividend up 5 per cent to 15.1p.

Shares in Meggitt (LON:MGGT) are currently trading up 10.45 percent at 459.60 (0950GMT).