Meggitt PLC (LON:MGGT), a leading international engineering company specialising in high performance components and sub-systems for the aerospace, defence and selected energy markets, today provided a further update on the impact of Covid-19.
Since our market update on 19 March 2020, we have conducted further analysis of the adverse impact of Covid-19 on the civil aerospace sector and our business. This analysis incorporates the latest industry projections on the reduction in air traffic in 2020, and the associated decrease in demand for both original equipment and aftermarket services.
As a result, and despite the strength of our financial position (as summarised on 19 March), the Board has decided that it is prudent to withdraw the recommendation to pay the final dividend of 11.95 pence per share. Consequently, the dividend resolution referred to in the notice of Annual General Meeting will not now be put to that meeting.
This action, together with a series of significant measures to reduce costs and tightly manage cash flow, will further strengthen our financial position and liquidity.
A further update on progress and Meggitt’s first quarter trading performance will be provided in our AGM statement on 23 April 2020.
