Member Article

Blackburn-based Meggitt report pre-tax profit down 13%

Blackburn-based Meggitt, an engineering company specialising in defence, aerospace and energy, report pre-tax profit for 2014 was £328.7 million, down 13% compared to the previous year.

Revenue was also down 5% for 2014 compared to 2013.

The company report spending on R&D and strong currency headwinds have impacted its financial results.

2015 looks set to improve with the news of a new multi-million dollar contract won with AVIC Aircraft Xi’an Branch.

Chief Executive, Stephen Young, said: “2014 was a challenging year for the Group, exacerbated by the impact of external factors including a significant foreign exchange headwind.

“However, the organic decline in the first half was followed by a return to growth in the second half.

“The record levels of investment in R&D and new product introduction follow a very successful period of winning work on new platforms.

“This will drive revenue growth extending over many decades.

“We made excellent progress against our key strategic initiatives including deployment of the Meggitt Production System, our global continuous improvement programme which, together with a 9% increase in orders and the stronger second half revenue growth, gives us good momentum going into 2015.

“Reflecting our continuing confidence in the prospects for the Group, the proposed final dividend is up 8% on last year to 9.50p resulting in a full-year dividend of 13.75p, also up 8%.”

This was posted in Bdaily's Members' News section by Sophia Taha .