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.

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Meggitt

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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.