Meggitt profits jump 18%, shares up 5%

Meggitt (LON:MGGT), the UK based aircraft equipment supplier soared over 5% in early Tuesday trade after it announced a 10% increase in revenue.

There has been under some pressure elsewhere in the aircraft industry, todays results have been cheered by investors who welcome Meggit’s ability to navigate the challenges in the market.

“Over the last few years we have made important decisions to further improve our competitiveness in the markets we serve. With implementation of the Meggitt Production System we are delivering valued improvements in customer experience through enhanced quality and delivery and, while this will take several years to optimise fully, the experience we have gathered to date serves to increase our confidence that over the medium term it will drive further cost and working capital benefits,” said CEO Stephen Young

In addition to the jump in revenue which supported an 18% increase in first half pre-tax profit, Meggitt said full year profit is likely to be in line with guidance.

Adding to investor’s delight was a 4.6 pence interim dividend to be returned alongside the current buyback program.

Shares in Meggitt were up 5.6% at 11.00am in London trading, the second highest riser after Smiths Group (LON:SMIN) who were up 5.9% after a US activist investor took a stake.

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