Meggitt pulls dividend as Covid-19 slams air industry

Defence engineering firm Meggitt pulled its final dividend to save cash as the coronavirus pandemic hit its aerospace market.

The company on Friday said it had made the decision to cancel the 11.95p a share payout after the slump in air traffic in 2020, “and the associated decrease in demand for both original equipment and aftermarket services”.

“This action, together with a series of significant measures to reduce costs and tightly manage cash flow, will further strengthen our financial position and liquidity,” the company said in a statement, adding an update would be provided on April 23.