Bournemouth-based engineering and defence specialist Meggitt (MGGT) is among the FTSE 250's biggest gainers, advancing 11% to 428.5p on the back of a solid set of full year result.
Meggitt's advance contrasts with that of sector peer GKN (GKN), which trades 4.1% lower at 277p.
Meggitt's results for the year ended 31 December 2015 show the company recording turnover of £1.65 billion, up from £1.55 billion in 2014. Pre-tax profit also increased to £210.2 million from £208.9 million the year before.
The company said organic revenue growth of 4% per cent in its civil aerospace division and flat military revenue had been offset by weakness in its energy business.
Meggitt also reported declines in operating margin which reflected a loss at its Heatric subsidiary, unfavourable product mix, particularly within civil aftermarket, and further expenditure on new products.
Commenting on Meggitt's results and tying them in with sector peer GKN's finals, Andy Chambers at Edison Investment Research expects both groups to experience moderate growth in the current year.
'While Meggitt’s rating appears to be attractive on 11.7x FY16 consensus EPS estimates, GKN continues to look undervalued on a current year consensus PER of around 10.0x, notwithstanding its structurally lower margins,' writes Chambers.
