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Meggitt PLC on Thursday saw a rebound in 2021 with a swing to profit helped by reduced costs, while dividends were still on hold due to its takeover by Parker-Hannifin Corp.
Meggitt shares were down 0.2% to 762.40 pence each in London.
The Coventry, England-based aerospace components maker swung to a pretax profit of £31.3 million in 2021 from a £334.0 million loss a year before. Profit was helped by a fall in cost of sales to £1.02 billion from £1.20 billion.
Revenue fell to £1.49 billion from £1.68 billion in 2020.
‘We delivered a robust performance in 2021, during which we adapted to challenging market conditions and finished the year with a good cash performance and increasing momentum, as shown by our encouraging order intake,’ Chief Executive Tony Wood said.
Meggitt did not pay a final dividend, which was in line with the terms of its £6.3 billion takeover by Parker-Hannifin. This left the annual total payout at nothing, with the last dividend being paid in 2019.
Looking ahead, Meggitt said: ‘Building on the positive momentum in 2021 and good order intake at the end of the year, the outlook for our civil aerospace business is encouraging. However, with a number of countries still experiencing high infection rates and with travel restrictions in place, forecasting the pace and trajectory of this recovery remains difficult, particularly in the short-term. The prospects for our energy and defence end markets are expected to remain solid.’
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