Meggitt
5% Expected annual organic growth
Meggitt has made clear that, with a dearth of appropriate and properly priced acquisition targets out there, the company would rather its strong cashflow was returned to shareholders, while its level of borrowings is probably not high enough in these low interest rate times.
That debt was refinanced last year. The company is, therefore, at the start of a share buyback programme that will stretch through this year, one that analysts expect to run to £230 million to £270 million, or perhaps 7 per cent of the share capital.
The latest purchase is not going to change any of this, being merely a useful bolt-on to the energy business that the company has been expanding to lessen its dependence