Meggitt warns on Falcon programme changes

Meggitt noted the announcement by Dassault Aviation of the cancellation of the Falcon 5X programme on Thursday, along with the launch of a new Falcon programme featuring the same cross section, powered by Pratt & Whitney Canada engines, with an expected entry into service of 2022.

The FTSE 250 company said Dassault had indicated that it expected to reuse a maximum of work undertaken to date on the Falcon 5X, and that it intended to work with Meggitt on the successor Falcon programme.

Meggitt said it was expecting to have further discussions with Dassault Aviation in the coming weeks.

Additionally, it said it had “good content” on the Pratt & Whitney PW800 engine anticipated to be used in the successor aircraft.

“However, it remains possible that the cancellation of the Falcon 5X programme could lead to a non-cash impairment of some or all of the capitalised work undertaken to date,” the board warned in its statement.

“Meggitt currently has £50m of assets relating specifically to the 5X programme, and a further £11m of assets relating to the Silvercrest engine on its balance sheet.”

The Meggitt board said it would update the market on further developments as required.