Meggitt chief executive Mike Stacey sounded an optimistic note on the state of the industry at a breakfast briefing yesterday but added a cautionary caveat on the state of research and development by UK aerospace companies.
Stacey pointed out that the £10 million ($15.6 million) investment which his company made in R&D placed it 11th in the UK, which he described as a sad indication of the state of affairs.
Modest
Meggitt is a relatively modest operation with annual sales of around £250 million.
This is reduced from £350 million following a restructuring that left the company with just six core business units - a move which has given the company new focus, Meggitt officials said at the briefing.
Businesses
Twelve companies that "...did not fit" were sold, leaving the core businesses in aerospace components, avionics, target systems, electronic components, electronic systems and industrial controls.
The Meggitt boss reported 10% sales increases for the past two years, and indicated R&D will continue to play a key role to develop new products.
Doug Gemmell, managing director of Meggitt Avionics, stressed the importance of product development as an integral part of the commitment to R&D.
Products
"In the past people seemed to have forgotten to ask customers exactly what they want and we are concentrating on products that actually bring benefits to the end user."
Meggitt lived up to its words by unveiling the latest 30kg Unmanned Air Vehicle "Phantom", described as an innovative and advanced-design air vehicle.
Potential
It has just completed a series of successful demonstration flights to a potential European customer in the face of tough international competition.
Meggitt will continue to look globally for acquisitions and opportunities, says Stacey.
He pointed out that the company has an "extraordinarily good spread," with just 37% of its business in the domestic market and the rest overseas, primarily in the important US market which accounts for 35%.
Source: Flight Daily News
