13th May 2014 07:51
LONDON (Alliance News) - Melrose Industries PLC Tuesday expressed confidence in meeting full-year expectations, as it saw order intake up 3% in the year to date, compared to the previous year.
The industrial investment company said that its two largest businesses, Elster Gas and Brush, both had good visibility with their current order books supporting full year expectations.
Elster Gas saw orders rise 10% during the year to date, although underlying sales were down 1%, Melrose said. Elster Electricity showed signs of growth, although trading is weighted to the second half, it said. Elster Water continued to show improvement since it was acquired; restructuring at the business has largely been completed, Melrose said, and continues to benefit its performance.
Electricity generating equipment business Brush continued to weather slow end-markets, which hit revenue in the year to date. However order intake was up 8%, which Melrose said would primarily benefit 2015.
Its Bridon mining business continued to be hit by poor market conditions, leading to a 3% decline in order intake. Melrose said that cost-cutting measures have been undertaken at the business to support its financial performance for the year.
Melrose expressed optimism in its future, although it warned that its tough macro trading environment continues to make significant and consistent revenue growth hard to achieve.
Shares in Melrose were trading up 3.0% at 295.90 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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