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31 August 2017 07:02 Download the pdf

2017 Half Year Results

Melrose Industries PLC today announces its interim results for the six months ended 30 June 2017.



Underlying1  results £m

Statutory results £m
Revenue 1,085.6 1,085.6
Profit before tax 131.1 47.8
Diluted earnings per share 4.9p 2.0p


  • Record Nortek first half performance:  
    • Fastest improvement in profit compared to any previous Melrose deal
    • Highest ever first half cash generation of £103.4 million pre-capex2
    • Underlying1 operating profit of £145.5 million, 54%3 higher than last year 
    • Underlying1 operating margin of 14.7%, up 5.53 percentage points
    • Significant investment of over £47 million in capital and restructuring projects to further improve performance
  • Brush is experiencing its toughest market conditions since Melrose acquired it in 2008 and, accordingly, appropriate action is being taken for the long-term with all parts of the business being reviewed
  • Net debt of £669.1 million, equal to 2.3x EBITDA4, better than expected
  • Interim dividend of 1.4p per share (2016: 0.3p5


(1)  Considered by the Board to be the best measure of performance. A reconciliation of the statutory operating profit/(loss) to underlying operating profit/(loss) is given in the Finance Director’s review 

(2) Operating cash generated before capital expenditure 

(3) 2017 post acquisition performance compared to the same period in 2016. Proforma 2016 results are based on previous Nortek accounting policies, reported under US GAAP, using constant exchange rates 

(4) Underlying1 operating profit before depreciation and amortisation. Includes 12 months of Nortek 

(5) Adjusted to include the effects of the 2016 Rights Issue 

Christopher Miller, Chairman of Melrose Industries PLC, today said:

“During the first ten months of our ownership, Nortek has delivered the fastest initial improvement in performance Melrose has ever achieved. More investment is being made in Nortek to drive further improvements and appropriate actions are being taken in Brush for the long term. We have also been busy exploring potential acquisitions over the past few months, and remain confident in our ability to find the right opportunity.”

An analysts’ meeting will be held today at 11.00 a.m. at J P Morgan, Old School Building, 60 Victoria Embankment, London, EC4Y 0JP (entrance at 1 John Carpenter Street).

Nick Miles, Charlotte McMullen
Tel: +44 (0) 20 3514 0897