- International engineering company, Meggitt, has seen its 2020 group revenue plunge 22% to £1,684 million - a direct result of the impact Covid-19 has had on the civil aerospace sector.

Underlying operating profit was 53% lower at £191 million when compared with the 2019 figure of £403m. In light of ongoing challenging and uncertain market conditions, the board has recommended not to pay a final dividend for 2020

It also reported a statutory operating loss of £297m (FY 2019: profit of £325m) as a result of the non-cash impairment of intangible assets and other asset write downs.

The company did, however, have a 'successful delivery' of in-year cash savings of £450m and has a positive free cash flow of £32m. It also reduced its net debt by £138m to £773m.

CEO of Meggitt, Tony Wood, said: 'Our focus throughout 2020 and as we move into 2021, continues to be ensuring the safety and well-being of our people, protecting our sites, serving our customers and communities and executing our strategy.

'Faced with a reduction in activity and demand in one of our core markets, we acted fast, executed well operationally and took decisive action while positioning the group for the recovery in civil aerospace. While our full year performance has clearly been impacted by the ongoing effects of COVID-19, it also reflects the resilience and diverse nature of the Group, including the mitigating impact of our defence and energy businesses.'

Mr Wood added that the roll-out of vaccines, coupled with significant pent-up demand to travel, provides a supportive backdrop for the recovery in civil aerospace in 2021, although this positive development is likely to take time to feed through into growth in global flight activity and the aftermarket.

He said: 'Based on the significant progress we've made over the last four years to transform the group, the effective actions we've taken in 2020, diverse end market exposure and leading market positions, we are well placed to benefit from the recovery and to continue to deliver long-term profitable growth.'

At 9:07am: [LON:MGGT] Meggitt PLC share price was 0p at 376p

Story provided by