Energy and aerospace growth boosts parts maker Meggitt

STRONG performance from civil aerospace and energy markets boosted aircraft parts maker Meggitt in its full year results released yesterday.

The FTSE firm, which supplies flight displays and wheels to big plane makers such as Airbus and Boeing, posted a 12 per cent rise in underlying pre-tax profit over the year to £362.8m.

Revenues jumped 10 per cent to £1.6bn, with a 45 per cent increase in energy revenues driving the rise.

Demand for circuit heat exchanges flattered revenues, and Meggitt added that the energy business was forecast to grow at a rate above 10 per cent over the next few years.

Civil aerospace revenues grew seven per cent over the year, with strong growth in large jets, Meggitt said.

The firm appeared to shrug off concerns over the international probe into Boeing’s 787 Dreamliner. In January, one of its US subsidiaries, which makes chargers for the lithium ion batteries used on the planes, was drawn into the investigation.

On the back of strong results, Meggitt hiked its dividend 12 per cent to 11.8p a share, adding that it expects to deliver mid-single-digit organic growth this year.

Shares closed up 2.37 per cent yesterday at 470p.