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Pre-Tax Profit Up 7% At Meggitt Plc

The share price of Meggitt (LSE: MGGT) —  the international engineering company that specialises in high-performance components and sub-systems for the aerospace, defence and energy markets — is slightly higher following the release of its interim results to 30 June 2013 this morning.

Underlying pre-tax profit was up 7%, to £182.4m, on revenue that had increased 4%, to £810m. Underlying earnings per share improved 9% to 18.1p, and the interim dividend has been increased by 10% to 3.95p, which reflects “ongoing confidence in our end markets“, the company says.

Commenting on the results, chief executive Stephen Young said:

“The business delivered top line growth in line with our expectations in the first half, with particularly strong performances in the civil OE and energy markets.  Military held up well given the challenging budgetary environment, and we have seen a modest recovery in the civil aftermarket in the second quarter.  The work we are undertaking as part of the raising the bar programme, focusing the Group on achieving world-class operations and programme management, underpins our confidence in delivering further strong growth.”

Meggitt also announced two contract wins this morning. One is from Sikorsky, for a “multi-million dollar” fuel system, and will run from 2015 to 2030. The other — worth $50m — is to provide fire protection equipment for the Russian Irkut MC-21 aircraft programme.

At the time of writing, Meggitt’s share price is 557.5p. That’s up over 46% so far in 2013, and almost 200% over the past five years. Meggitt’s dividend yield is currently around 2.4%, and is forecast to rise to close over 2.5% in 2014.

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> Jon doesn’t own shares in Meggitt.