(Sharecast News) – Defence and aerospace engineer Meggitt said it expected full year results to be in line with expectations but cautioned that the expected recovery in air travel from the Covid pandemic would take longer than expected.
The company reiterated guidance from November with underlying profit in the middle of a £180m – 200m range and revenue of £1.7bn.
Free cash flow was expected to be positive and net debt below 2019 levels after savings cuts, Meggitt said on Friday.
“Trading across our end markets in the final quarter was broadly in line with the trends experienced in October, with group performance lower than our September base case, which assumed a progressive improvement in civil aerospace in the fourth quarter.”
It said the rollout of coronavirus vaccines and pent-up demand for air travel, “provides a supportive backdrop for the recovery in civil aerospace in 2021”, but warned that logistical challenges in getting jabs administered meant “this positive development will take time to feed through into growth in flight and passenger numbers and aftermarket activity levels”.
Meggitt said trading across end markets in the final quarter was broadly in line with the trends experienced in October, with group performance lower than its September base case, which assumed a progressive improvement in Civil Aerospace in the final three months of the year.
