In a trading update, the company said revenue for the six months to June 30, 2020, is estimated to fall by 15% on last year, mostly driven by civil aerospace – accounting for around half of total sales – which has seen a 30% drop amid travel restriction impacts.
The group's energy division revenue is also estimated to be lower than last year, though defence revenue is expected to rise by 1%-5%.
The FTSE 250-listed engineer said it is making good progress in delivering cost-saving measures, while the “significant” free cash outflow in the first half will be offset by the sale of its training systems subsidiary for US$146mln.
As of May 31, 2020, Meggitt said it had £1.6bn of committed facilities in place, while the group is also eligible to access extra cash via the Bank of England's Covid Corporate Financing Facility.
Shares shot up 6% to 322.8p on Thursday at the opening bell.