Meggitt reiterates full year revenue guidance

FTSE 250 defence and aerospace engineer Meggitt reiterated its full-year revenue guidance as it said first-quarter trading has been in line with expectations.

The group reported organic revenue growth of 1%, excluding the effects of M&A and foreign exchange, which it said was consistent with its previously announced expectation that revenue and earnings will be weighted towards the second half of the year following the atypical phasing in 2015.

Civil aerospace revenue grew 6% organically, within which organic aftermarket revenue growth was 7%. In the military division, revenue was up 1% on an organic basis, while energy weakness persisted, as expected, resulting in a 15% decline.

Meggitt said it has made good progress with the cost reduction plans outlined in the full-year results in February, and is confident of achieving the targeted headcount reduction of 400 by the end of the first half.

“Overall, the group continues to expect low single digit organic revenue growth for the year, in line with guidance issued with the 2015 full-year results in February.

“As previously advised, reported revenue growth will benefit from the favourable effect of the strengthening of the US dollar against sterling and the two composites acquisitions completed towards the end of 2015.”