Meggitt takes off on boosted guidance

The price of shares in aeronautical engineering specialist Meggitt (LON:MGGT) has risen by 4.48% to 596.80p (as of 13:00 BST) after it announced that revenues for the six months ended 30th June climbed by 9%. As a result of strong first-half trading, the company has increased its revenue growth guidance for the full year from 4% to 6%.

CEO Tony Wood commented: “Trading in the first half was strong, with robust growth in both civil original equipment and defence and good performance in our civil aftermarket business, despite an easing in air traffic growth and lower demand for initial provisioning spares following the grounding of the 737 MAX. As a result, we have increased our full year organic revenue growth guidance to 4 to 6% and remain on track to deliver a margin improvement of between 0 and 50 basis points in 2019.

“We continue to make good progress in the operational transformation of the Group, including our centre-led approach to purchasing, footprint rationalisation programme and driving improved operational performance at our Engine Composites product group. We have strengthened and focused our portfolio, with further investment in priority technology areas such as thermal systems, optical sensing, fire protection and braking systems and the completion of two non-core divestments“.