|
Article Excerpt
Original Source: FD (FAIR DISCLOSURE) WIRE
TERRY TWIGGER, CHIEF EXECUTIVE, MEGGITT PLC: Good morning, ladies and gentlemen. I'm Terry Twigger, Chief Executive. My colleagues are Stephen Young, Group Finance Director and Andy Mann, Investor Relations.
The presentation will follow our usual format. I'll run through the highlights, Stephen will take you through the financials and then I'll go through what's been happening in the markets and our businesses in the last six months. And finally, I'll end by summarizing the outlook for Meggitt.
We have a clear strategy. It's based on developing highly engineered products which operate in harsh environments. We've got some great market positions and technologies. We've proven our business model by delivering sustained results over many years. We're continuing to invest in the businesses. In the first half of 2008, we invested around 7% of our revenues in R&D to generate new IPR owned by the Group.
An essential part of our strategy is to operate in balanced end markets. We're not solely dependent on Civil OE or the Civil Aftermarket. 37% of our revenues come from Military sales and we're developing a growing energy related business. Equally importantly, whether it's Civil or Military, no one customer or platform dominates our sales.
We have a broad footprint with sales and distribution around the world and access to lower cost sources of manufacturing in China and Mexico.
This slide summarizes our strategy. It's all about picking the end markets, investing in them and then putting in the structure and resources to make sure the whole Group executes. We implement these strategies and report through the three SPUs.
The results demonstrate we're continuing to deliver. We've had a great first half performance, tremendous top-line growth, partly helped by the acquisition of K&F, but also strong organic growth with sales up 14%. Our pro forma order intake was up 18% in the first half, compared to the first half of '07, with Civil up 13% and Military up 22%, helped by some lumpy contracts.
K&F is trading strongly, in line with our expectations, the integration is well underway and the increased synergies will be delivered. And to support our continued growth into the future and to enhance our profitability, we've not only made significant investments in R&D, but we're increasing our manufacturing presence in China and Mexico.
I'll now hand over to Stephen, who can take you through the financial results in a bit more detail.
STEPHEN YOUNG, GROUP FINANCE DIRECTOR, MEGGITT PLC: Thank you, Terry, and good morning. Clearly, we didn't have K&F in our reported numbers for the first six months last year and so we have some pretty significant increases in the headline numbers.
To give you a better view of the like-for-like performance of the enlarged business, we've also added K&F's 2007 figures into the prior year comparator to give, what we call, a pro forma growth figure.
We had excellent order intake, which was up 53% year-on-year and on a pro forma basis the increase was 18%.
Our revenues increased by 47% and on a pro forma basis the increase was 14%. Underlying PBT was up 59%, again, on a pro forma basis the increase was 22%. And underlying earnings per share was up 22%, again, on a pro forma basis the increase was 21%.
Now, just to show you what would happen -- what the figures would have been if we exclude K&F altogether, in other words, to give you an organic, old-Meggitt growth figure, those figures would have been up 22% on order intake, up 10% on revenue and up 8% on underlying PBT.
Net debt reduced by nearly GBP30m to GBP786m at the end of June, just under 2.5 times EBITDA. So, which ever way you look at it, that was an excellent set of results. And on the back of this strong performance, the Board have increased the interim dividend by 10%.
This is our usual P&L slide. As you know, we focus on the underlying profit numbers, which are highlighted in the yellow box. The adjustments we've made to get from statutory to underlying profit are the usual ones and they're described in more detail in...
|
