Rosebank Industries shares jump as H1 performance beats expectations

(Sharecast News) - Shares in Rosebank Industries jumped on Thursday after the industrial group said it was trading ahead of recently upgraded full-year forecasts, with its acquired businesses making faster-than-expected operational progress. The company, which specialises in turnaround situations, reported a maiden first-half revenue of $733m and adjusted operating profit of $110m, compared with an adjusted operating loss of $3m a year earlier, when the group was still largely in its pre-acquisition phase.

Adjusted profit after tax was $74m and adjusted diluted earnings per share came in at 10.3 cents.

On a statutory basis, Rosebank posted an operating loss of $34m, reflecting $144m of adjusting items related mainly to acquisition and disposal activity, restructuring and other non-cash charges.

Net debt stood at $1.07bn, significantly better than market expectations, according to the company, with leverage at 2.4 times. The board also declared its first interim dividend of 2.1 cents per share.

Rosebank said its acquired businesses of ECI, CPM and MW Components were all progressing well under its "Buy, Improve, Sell" strategy.

Chief executive Simon Peckham said he was "delighted" with the progress of the acquired businesses, all of which quality "have significant potential for improvement in our ownership".

He added: "Plans have been agreed and are now being implemented faster than we had forecast to achieve our stated shareholder targets."

For 2026, Rosebank now expects adjusted operating profit and adjusted EPS to come in ahead of current market expectations, which had most recently been raised in July.

At 1310 BST, the shares were up 5.0% at 359p.

See the latest RNS on Investegate.