Defence giant Meggitt’s order book value teeters around £1bn ahead of takeover
Meggitt’s orders are up nearly 50 per cent, teetering around the £1bn mark, as the British defence manufacturer undergoes a foreign takeover.
The London-listed firm’s order book has been valued at £996.9m in the six months to 30 June, up from £671.4m in the same period last year, Meggitt revealed today.
Revenue has jumped more than 20 per cent to £821m in the period, up from £680m last year. Meanwhile, operating and pre-tax profits have grown around a third to £78.6m and £63.6m, respectively.
Civil aerospace demand carried Meggitt’s revenue growth, while defence revenue dwindled slightly, falling eight per cent behind last year’s figure.
“We are encouraged by the strong recovery in passenger demand for our civil business as airlines bring more aircraft into service and the improving prospects for defence as we come out of a period of significant destocking in the aftermarket,” chief executive Tony Wood said in a statement today.
“However, we are mindful of the challenges that our industry continues to face with availability across the supply chain and continued cost inflation on materials and labour. “
The half-year results come ahead of an overhaul in ownership in the third quarter of this year, when Meggitt’s takeover by Parker-Hannifin is expected to close.
Shareholders approved the cash offer of 800p per share in September last year.
However, the deal received the official go-ahead from the UK government just last month following a national security review of the deal.