Meggitts interim dividend is up 5% to 5.55p from 5.30p reflecting continued confidence in the prospects for the Group.
Other financial highlights include:
Organic revenue growth of 9% reflects strong trading performance in civil OE and defence. Reported revenues increased by 12% due to organic growth and currency, partly offset by non-core divestments.
Full year organic revenue growth guidance increased to 4 to 6% following better than anticipated trading in H1 and strong order intake with organic book to bill of 1.13x.
Underlying operating profit increased by 7% to £161m. Underlying operating margin reduced to 15.0% reflecting additional investment in Engine Composites and the growth in their installed base which was partly offset by the growing financial contribution from strategic initiatives.
Statutory operating profit decreased by 26% to £91m, principally as a result of lower gains from disposal of businesses compared to the prior period.
Free cash flow increased by 80% to £49m inclusive of the sale of land and buildings associated with their move to the Ansty Park site.
Strong progress on key strategic initiatives:
o Continued investment in differentiated technologies with good progress made in priority areas such as thermal systems, optical sensing, fire protection and braking systems;
o Factory consolidation and expansion activity ahead of plan; three sites exited since the beginning of the year with footprint reduced by 25% compared to the 2016 baseline;
o Good momentum in reducing purchased costs sustained, with 2% purchased cost decrease achieved in the first half; and
o Completed two further non-core divestments to focus the portfolio, with 75% of revenue now in attractive growth markets where Meggitt has a strong competitive position.
