UK's Meggitt says financial position strong after media report

British engineering firm Meggitt said on Thursday its liquidity was strong and that it continues to trade in line with its expectations, adding it had committed facilities in place worth 856 million pounds ($1.13 billion). On Wednesday Bloomberg reported that Meggitt was considering selling as much as $600 million in new stock and was working with advisers to review its debt options.

British engineering firm Meggitt said on Thursday its liquidity was strong and that it continues to trade in line with its expectations, adding it had committed facilities in place worth 856 million pounds ($1.13 billion).

On Wednesday Bloomberg reported that Meggitt was considering selling as much as $600 million in new stock and was working with advisers to review its debt options. "The Group notes the recent press speculation regarding potential debt or equity funding options," Meggitt said in response.

"The group continues to review a range of trading scenarios and associated actions to mitigate any material adverse change to the industry outlook," it said in a statement. Meggitt, a supplier to planemakers Airbus and Boeing, added it has access to additional liquidity under the Bank of England's COVID Corporate Financing Facility.

The company has already announced job cuts equivalent to 15% of its global workforce of 12,000 people. In recent weeks airlines including EasyJet and British Airways owner IAG have looked to shareholders to raise money.

Meggitt customer Rolls-Royce, has said it is considering its options. Meggitt shares, which have lost more than half of their value this year, were down 5% to 279 pence at 0744 GMT.

 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)