Meggitt says its full-year results are expected to match guidance
- Meggitt says its full-year results are expected to match guidance.
- The British international firm forecasts £1.7 billion of revenue in 2020.
- Meggitt expects underlying operating profit to print near £190 million.
In an announcement on Friday, Meggitt plc (LON: MGGT) said that its full-year results are likely to come in line with the guidance. The company expressed confidence that COVID-19 vaccination programs will help fuel demand for air travel and consequently for its aerospace-related components and sub-systems in 2021. But logistical challenges related to vaccine rollout, it added, are expected to translate into a delayed recovery.
“Given the logistical challenges associated with a global vaccine roll-out, we expect this positive development will take time to feed through into growth in flight and passenger numbers and aftermarket activity levels.”
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The Coronavirus pandemic has so far infected more than 3.2 million people in the United Kingdom and caused over 86 thousand deaths. In a report published in September, Meggitt had posted a 14% decline in its fiscal first-half revenue attributed to the COVID-19 crisis that restricted people to their homes.
Meggitt forecasts £1.7 billion of revenue in fiscal 2020
The company that also caters to the defence and energy markets expressed confidence that its underlying operating profit will print close to £190 million this year. In its previous guidance, Meggitt had forecast its annual underlying operating profit to fall in the range of £180 million to £200 million.
The FTSE 250 listed company also said on Friday that its revenue was likely to come in around £1.7 billion in fiscal 2020. As per Meggitt, its free cash flow will be positive this year. Compared to 2019, the British firm expects its net debt level to be lower in 2020.
Earlier this week, Meggitt said that it secured SMARTSupport aftermarket contract with Sichuan Services Aero-Engine Maintenance Company (SSAMC).
Meggitt’s performance in the stock market
Meggitt plc opened roughly 2.5% up on Friday. Including the price action, the stock is now exchanging hands at 435 pence per share versus a significantly lower 217 pence per share in the first week of April 2020, when the COVID-19 crisis wreaked havoc the demand for air travel. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.
Meggitt performed largely downbeat in the stock market last year with an annual decline of more than 30%. At the time of writing, the British international company has a market cap of £3.43 billion.