Melrose trading 'materially ahead' of expectations

(Sharecast News) - Melrose Industries said on Wednesday that it was trading "materially ahead" of expectations, with significant growth in revenue, profit and margin, as it issued new guidance for the full year. In the first four months of this year, revenue was up 19% on the same period a year earlier, with Engines showing the fastest momentum, up 28%, and Structures up 14%.

Melrose now expects full-year 2023 revenue of between £3.35bn and £3.45bn, adjusted operation profit of between £340m and £360m and adjusted EBITDA of £495m to £515m.

Melrose also said on Wednesday that for the next 12 months, its focus will be "to create further substantial value for shareholders by maximising the embedded quality and potential of Aerospace". Beyond that, it will continue as a pureplay aerospace company.

As a result, it will not seek to make another acquisition of an unrelated industrial business or, in the near term, a material aerospace business.

Chief executive Simon Peckham said: "Aerospace has huge embedded value and an EBITDA of £1 billion is achievable within the next few years, much of this coming from the premium Engines business.

"With the new simplified strategy for Melrose announced today, we look forward to explaining the full potential of Aerospace at the upcoming capital markets event next week including the route to realising this value."