Meggitt PLC (“Meggitt” or “the Group”), a leading international company specialising in high performance components and sub-systems for the aerospace, defence and energy markets, today issues the following trading update. This statement covers the period from 1 January 2015 to 22 April 2015.
At the AGM, Sir Colin Terry, KBE, CB, Chairman of Meggitt PLC will comment:
“Trading during the first quarter of 2015 was in line with expectations. Organic1 revenue in civil original equipment (OE) and civil aftermarket (AM) grew at mid single digit rates, broadly consistent with our full-year expectations for these end markets, with OE slightly stronger than AM. Stronger than expected organic growth in military revenue was partially offset by a decline in energy, where near-term market uncertainties persist. In total, the Group achieved organic revenue growth of 4%.
Overall, the Group continues to expect low to mid single digit organic revenue growth for the year, in line with guidance issued with the 2014 full-year results in February. As previously advised, we expect reported revenue growth will benefit from the favourable effect of the strengthening of the US Dollar against Sterling and the acquisition of PECC, partially offset by the weakening of the Euro against Sterling.
Following the commencement of the share buyback programme announced in November 2014, we have now purchased a total of 17.7m shares at a cost of £93m, and are on target to achieve a net debt:EBITDA ratio at or slightly above 1.5x by the end of the year. Net debt:EBITDA at the end of the first half is likely to exceed this level reflecting the normal seasonality of the Group’s cash flow. The financial position of the Group remains strong.
Meggitt PLC +44(0)1202 597597
Richard Cashin, Group Head of Investor Relations
Buchanan +44(0)20 7466 5000
Charles Ryland/ Richard Oldworth/ Helen Chan
1 Organic numbers exclude the effect of acquisitions, disposals and foreign exchange.
This trading update, including information included or incorporated by reference in this trading update, may contain forward-looking statements concerning Meggitt PLC or its group. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. Such forward-looking statements involve risks, uncertainties and other important factors which could cause the actual results, performance or achievements of the Meggitt group or the market and economies in which the Meggitt group operates to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the ability of Meggitt PLC or its directors to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements, which speak only as at the date of this trading update. Neither Meggitt PLC, nor any of its group undertakings, nor the directors of any of them, assumes any obligations to, and do not intend to, update these forward-looking statements, except as required pursuant to applicable law.