22MEGGITT PLC REPORT AND ACCOUNTS 2010AT A GLANCE | BUSINESS REVIEW | CORPORATE GOVERNANCE | FINANCIAL STATEMENTS | SUPPLEMENTARY INFORMATION7% in 2010. Meggitt is exceptionally
well-positioned to take advantage of this positive trend in the aftermarket, where our carbon brakes are common on these larger, high-cycle aircraft.Further opportunity exists with imminent Sukhoi SJ100 and COMAC ARJ21 service entries and a good start to the Mitsubishi MRJ70/90 programme.Business jetsThe business jet sector had a difficult 2010, with about half the number of aircraft being delivered compared to
the 2008 peak. There continues to be
a clear divide between larger and smaller platforms, with the larger models proving to be more resilient to the economic climate. In 2008, some 52% of Meggitt's business jet sales were made to larger aircraft, which afforded us some protection from the sector's subsequent fall. Larger aircraft will become even more important to Meggitt with the approaching first delivery of the Gulfstream G650, which hosts a wide array of our products.Business jet delivery forecast020092010201120122013201420152006004001,0008001,200Source: Meggitt Management Estimates8296656517688909961,048In smaller business jets, Embraer gained traction with a breakthrough NetJets order for 50 Phenom 300s.
Most forecasters expect Embraer to
win a significant share of this market, where Phenom 100/300 and Legacy 450/500 use our braking systems.2011 is perhaps too soon to expect overall OEM build rates to increase
but fleet utilisation is well along the
road to recovery, up 12% in the US in 2010, supporting our aftermarket-biased business model. In the mid-term
(2012-2015), we expect business jet deliveries to return strongly, driven
by a host of new jets with high Meggitt content, such as Gulfstream G250/G650, Learjet 85 and Cessna CJ4.Military aerospace and defenceMeggitt's military revenues account for 44% of our business, comprising fixed wing aircraft at 46%, rotary wing at 24%, land vehicles at 6% and other sectors, including training, at 24%. This diverse base is spread across a wide variety of platforms and our mix of OE (57%) and aftermarket (43%) is expected to give a strong revenue source in a challenging defence budget environment.Defence budgets around the world
are under pressure, as governments rebalance spending to compensate
for increased national debt. However, with active operational commitments
in Afghanistan, policies are being implemented to mitigate any adverse impact on the front line, whilst modernising with new and updated existing equipment as a long-term operating solution. Meggitt estimates this market will yield organic revenue growth in the region of 2% over the medium-term due to our positions on key workhorses (e.g. Black Hawk), incoming platforms (e.g. Typhoon, F-35 JSF) and potential retrofits.Fighting fit Eurofighter Typhoon, the world's most advanced swing-role combat aircraft and Europe's largest collaborative military programme, supports over 100,000 jobs across 400 companies. In service with the RAF and the air forces of Germany, Italy, Spain and Austria, it has been ordered by the Kingdom of Saudi Arabia. Its landing gear sub-systems, including control and comprehensive monitoring, were integrated by Meggitt and the aircraft carries our air data transducer and crash survivable memory unit. Production continues until 2015 with opportunities for additional orders from its home nations and potential in the export market. Market reviewUS Department of Defense (DoD)For the US, which is by far the most important military market for Meggitt, projections continue to show a growth in spending for the next couple of years followed by reductions once the drawdown of forces from Afghanistan has taken place. The precise impact
of these future spending reductions are still being determined but, in addition
to the requirement for cost savings, there is a continuing requirement to adapt tools, equipment and training to Military revenue by OE and aftermarket Aftermarket 43% OE 57%JMT UK and Indisplay have joined forces to offer a much wider choice of furniture, flooring and display hire, as well as increased stock levels to meet all of your rental requirements. All with the same exceptional service that our customers already enjoy. www.jmtindisplay.co.uk +44 (0)1923 851580Service without frontierS SUPPLIERS & INSTALLERS OF FLAME RETARDANT CEILING AND DRAPE FABRICS T EL: 0208 591 4945 FAX: 0208 591 4139 Email:email@example.com www.omegadrapes.co.uk +44 (0) 20 8545 2492 | firstname.lastname@example.orgSafe hands for your events Committed to the provision of high quality professionals and improving health and safety standards worldwide, ?e EEP Safety Team offers a comprehensive service. Whatever and wherever your event, we have a team experienced in both indoor and outdoor events. . Safety Officers . Aisle Marshals . Exhibitor Assistance & Guidance . Event Safety Planning & Risk Assesments . H & S documentation . Stand Approval Service . Floor Managers . Site Managers . Training . And More ...
INDUSTRY VIEWwww.exhibitionnews.co.uk 37LONDON 2012'S HEALTH AND SAFETY LEGACY: BURDEN OR BENEFIT?ESSA/AEV's Lee Holloway reports on the changes to event health and safety enforcement brought about by the London 2012 Olympic and Paralympic Games and the trade associations' work with the HSE to get cheers, not groans, from our industry's key stakeholdershe London 2012 Olympic and Paralympic Games will be the biggest live event to take place in the UK, and the size and complexity of the site construction project (the largest in Europe employing over 12,000 workers) attracted both the scrutiny and the support of the Health and Safety Executive (HSE) from the outset. Close involvement with the work onsite led the HSE to realise, and formally announce in late 2010, that it would be overseeing enforcement of health and safety at all events in terms of 'temporary and demountable structures'. This effectively added construction industry expertise and support to the UK's local authority teams that would continue to deliver overall enforcement of health, safety, food safety and other licensing at live events.Following visits to several more modest events, rumours quickly spread that the HSE was so concerned with the gap in standards it would apply complicated construction industry laws across the entire landscape of UK exhibitions and events to improve control and accountability. Many believed these laws would bring our industry to its knees. In the following months, however, the AEV, AEO and ESSA trade associations forged a relationship with the HSE which has led to a better understanding of the latter's concerns and intentions. POSSIBILITIES, NOT PROBLEMSIt would seem there is only good to be gained from the HSE's heightened insight and interest in the events sector, particularly in the context of the current political will to strip away the frustrating parts of the health and safety world.Participating in the trade association's seminar thread at the recent Event and Exhibiting Show, representatives from the HSE described The director of ESSA and the AEV, Chris Skeith, questioned the HSE on the common concern that the UK takes a completely disproportionate stance on health and safety compared with our European neighbours, and that this can lead to diffi culties when we are competing for international event business. HSE representatives Gavin Bye and Adrian Tinson were keen to point out the Lofstedt Review [launched in March 2011 by Professor Lofstedt] is likely to address some of the reasons behind this. STEPS FORWARDHowever, they agreed it was worth considering the whole picture in other countries where enforcement was not as tough but where imprisonment can be immediate once an accident occurs and that convincing mitigation is still required to avoid harsh punitive and compensatory measures. The associations will continue to work with the HSE to help ensure our industry does not go unnecessarily over-the-top with health and safety procedures. We also plan to paint what measures HSE does put in place in a positive light to exhibitors and other show participants. There are strong moral and economic grounds for robust (but proportionate) health and safety management. By working together, the associations and the HSE will ensure the legal framework and its interpretation present a benefi t as opposed to a burden to UK exhibiting and event production.- Lee Holloway is a member of the Institution of Occupation Health and Safety, Association of the International Institute of Risk and Safety Management, and health and safety advisor at the Event Supplier and Service Association (ESSA) and Association of Event Venues (AEV). TThere is only good to be gained from the HSE's heightened insight and interest in the events sectorhow they, with research partner the Health and Safety Laboratory, visited a number of shows in 2010 and indeed found areas that could benefi t from more structure. However, rigid enforcement of the Construction Design and Management Regulations was not something considered effective or benefi cial to events. The HSE's key observations included: Inadequately defi ned roles and responsibilities onsite; insuffi cient control of subcontractors and freelance personnel; poorly structured handovers; the absence of traditional 'toolbox talks'; the propensity for last-minute changes to design briefs leading to undertaking of unplanned or unassessed work; and improvements that could be made to the well-known areas of height working, manual handling and moving vehicles.CONSTRUCTIVE CRITICISMEncouragingly, the HSE not only identifi ed concerns but has also provided solutions. As the various event stakeholder working groups continue to review its HSG195 'Purple Guide' the HSE has additionally published some useful 'top tips' on its London 2012 Learning Legacy website. These practical measures are often low-cost or even no-cost to implement. They include simple near-miss reporting/observation cards that can be used to spot unsafe behavioural trends before an accident actually happens, as well as suggestions such as attaching hand tools to lanyards to prevent objects from falling, or tighter segregation between people and vehicles onsite. This last one is probably one of the toughest for us to address in practice as an industry, but is always worth review. The associations have already begun to feed this information into various working party initiatives including the eGuide and Ops Network groups.