Meggitt maintains guidance

Underlying revenue from the big aircraft manufacturers grew 15 per cent to £152.5m, and bullish forecasts look justified. Repair work has been slack for over a year now as airlines run down inventories, and first-half aftermarket sales were flat. However, destocking cycles have typically lasted 12-18 months, and modest growth in the second quarter is a start. City analysts also expect a return to growth at the regional and business jets operation this year, although a cloud still hangs over the military division. Revenue only nudged down to £305m, but when US state spending cuts take effect, Meggitt predicts a 2 per cent drop in military sales both this year and next offset, perhaps, by extra demand for spares as defence chiefs squeeze more out of existing fleets. Elsewhere, spectacular growth from energy products, principally printed circuit heat exchangers, is unlikely to be repeated in the second half following a strong end to last year.

Bank of America Merrill Lynch expects underlying 2013 pre-tax profit of £404m, giving underlying EPS of 39.2p (from £363m and 35.7p in 2012).