Market report: Meggitt takes to the skies

A strong first-quarter update from Meggitt set the aerospace engineer’s shares back on course.

The FTSE 250 company, which makes brakes for fighter jets and commercial planes, saw first-quarter organic revenue growth of 1%, reassuring anxious investors expecting another profit warning similar to that suffered in October.

Revenues in civil aerospace, its largest division, grew an encouraging 6%, with aftermarket revenues up 7% on increased orders. But belt-tightening in the oil industry caused a 15% slump in organic revenues as expected.

Shares in the company, which expects to cut 400 jobs in the first six months of this year, flew 21.5p or 5.5% higher to 410.7p. The update offered hope to rival firms including BAE Systems, which rose 8.21p to 518.21p, and Cobham, up 4.2p at 212.2p.

Defence group Chemring was 1.5p firmer at 137.75p, with the news Carl-Peter Forster, a former BMW and General Motors executive, is taking over as chairman from Peter Hickson in July.

On the wider market, the FTSE 100 climbed above 6400 for the first time this year. The early euphoria didn’t last long but the blue-chip index was still up 32.32 points at 6385.84, with support from the oil price and overnight Wall Street. Experian improved 18p to 1277p as the credit checker revealed it was buying identity fraud detector CSIdentity for $360 million (£251 million).

Citi said that clients who think Britain will stay in the EU should buy shares in ITV. They have fallen 14% this year as investors weigh the possible impact of Brexit on the broadcaster of The Durrells, starring Keeley Hawes.

The broker trimmed its target price to 280p, which suggests shares will return to their all-time highs. They were 1.7p better off at 239p on Tuesday.

Investors also dialled into Telecom Plus, the owner of Utility Warehouse. It was up 48.05p or 5.8% to 875.05p after confirming annual profits will hit guidance of at least £54 million despite tough conditions for the energy market.

Mobile security software firm Defenx, which floated in December, was 4.5p stronger at 123p when it revealed revenues of €4.5 million (£3.6 million) last year, although pre-tax profits slipped to €360,000 as it ramped up marketing.

Elsewhere, cash continued to flood into bulletin board favourite 88Energy, the AIM-listed Alaskan oil explorer and the year’s best performer, up 400%. It gained 0.28p to 2.23p.