15th Nov 2022 10:14
(Alliance News) - Melrose Industries PLC on Tuesday said it is trading in line with expectations for the full year, in the period to October 31 that started on July 1.
Melrose is a FTSE-100 London-based turnaround firm which specialises in buying and improving manufacturing firms.
It said group revenue during the period is up 14% on the same period last year and operating profit is "substantially higher".
In Aerospace, Melrose said it enjoyed improving momentum in the first half of the year, with sales up 11%. Average revenue per month in the period was 6% higher than that seen in the first half.
Additionally, Melrose said operating margins were "notably better" than achieved in the first half. It said the division is "positioned well to benefit from the strong momentum being seen into next year".
Furthermore, revenue in Automotive & Powder Metallurgy combined is up 19% compared to last year.
Chief Executive Officer Simon Peckham said: "Trading is going to plan and the demerger timetable for Automotive and Powder Metallurgy is on schedule. Our businesses are performing well, achieving a materially stronger performance in the second half of this year for profit and cash generation, and coping well with the current inflationary environment."
In September, Melrose said pretax loss widened to GBP358 million in the six month that ended on June 30, from GBP275 million a year prior. But revenue increased by 4.7% to GBP3.59 billion from GBP3.43 billion.
Shares were up 0.9% to 128.31 pence each on Tuesday morning in London.
By Xindi Wei; [email protected]
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