- Engineering group Meggitt posted a 5.3% drop in annual profit, pinned on a fall in the market value of certain investments.

Underlying earnings rose as the company beat its organic sales targets.

Pre-tax profit for the year through December fell to £216.1m, reflecting the non-cash impact of marking to market certain financial instruments, the company said.

Underlying operating profit rose 4% to £367.3m, as revenue rose 4% to £2.08bn.

Meggitt declared a full-year dividend of 16.65p, up 5% on-year.

'2018 was a landmark year for Meggitt, with strong performance underpinned by our increased content on new aircraft programmes and growing end-markets,' chief executive Tony Wood said.

Wood said Meggitt had boosted organic revenue by 9%, ahead of its raised guidance.

'We have a clear growth strategy and remain focused on driving further improvements in customer and operating performance through our new customer-aligned organisation and the sustained deployment of the Meggitt Production System,' he added.

'Together with our growing installed base of 71,000 aircraft, we are well positioned to sustain growth over the medium term and to deliver our 2021 targets for underlying operating margin and cash.'

Story provided by