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Meggit raises 2018 organic growth forecasts after stronger than anticipated second quarter trading

The FTSE 250-listed engineer said: “Trading in the second quarter has been stronger than previously anticipated, with good growth across the Group's Civil Aftermarket, Military and Energy market segments”
Eurofighter jet
Meggitt said it now expects total organic revenue growth in 2018 to rise by 4%-6%, up from the 2%-4% growth it had predicted earlier

Meggit PLC (LON:MGGT) has raised its organic growth forecasts for 2018 after seeing stronger than anticipated trading in the second quarter.

The FTSE 250-listed engineering company said it now expects total organic revenue growth in 2018 to rise by 4%-6%, up from the 2%-4% growth it had predicted earlier.

READ: Meggitt sells Precision Micro to Lloyds Banking Group’s LDC for £22.5mln in cash

The group added: “Trading in the second quarter has been stronger than previously anticipated, with good growth across the Group's Civil Aftermarket, Military and Energy market segments.” 

However, the firm said it expected operating margins to be at the lower end of its 17.7% to 18% guidance range due to slower-than-anticipated recovery at its polymers and composites division in the first half of the year.

Divisional reorganisation

In a separate statement, Meggitt also announced a reorganisation “designed to align its divisions more closely with its customer base and support the company's plans to accelerate organic growth.”

The group said, With effect from 1 January 2019, the current structure of capability-based business units will be replaced by four customer-focused divisions – Airframe Systems, Engine Systems, Energy & Equipment, and Services & Support.

Tony Wood, Meggitt’s chief executive, commented: "The reorganisation of the Group into four customer-focused divisions that we are announcing today provides an opportunity to accelerate growth and better leverage the operational benefits of our continued transition from a holding company to an integrated aerospace, defence and selected energy market group."

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