Meggitt chief eyes acquisitions this year after revenues grow
THE CHIEF executive of Meggitt yesterday said the engineering firm is open to M&A deals this year, as it posted strong full-year results that were in line with expectations.
“Our customers want to reduce their supply chain,” Stephen Young told City A.M. “We’re absolutely interested in acquisitions, but it has to be at the right price.”
He cited engine controls and energy or industrial-based valves as attractive sectors for a deal.
The FTSE 100-quoted company, which makes components for the aerospace, military and energy markets, said that revenue rose by two per cent to £1.64bn in 2013, while underlying pre-tax profit rose three per cent to £377.8m. It lifted its dividend by eight per cent.
It expects mid-single-digit organic revenue growth in 2014, weighted towards the second half, although Young warned that “currency headwinds” would affect this year’s results.
Shares closed up 2.3 per cent.