Meggitt sees 'significant' non-cash exceptional tax credit from US reforms

Meggitt, a FTSE 250 engineering business specialising in aerospace equipment, said on Thursday that it expects changes to the US tax system to result in a “significant” non-cash exceptional tax credit in its 2017 financial results due to the revaluation of certain US deferred tax liabilities.

The group, which is still working through the full impact of the new legislation that cuts the corporate tax rate to 21% from 35%, will provide further guidance at its 2017 full-year results presentation next month.

Its preliminary assessment is that the announced changes will reduce the company’s headline underlying effective tax rate to between 20% and 22% from the previously-guided rate of 24% for 2017.

At 0820 GMT, the shares were down 0.5% to 469.60p.