Investment case

Melrose is a leading UK-listed global aerospace business with a record of delivering significant value to shareholders.

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Our strategy is focused on value creation, founded upon continuous operational and financial improvement over the longer term

Our positive trajectory is underpinned by the strong organic growth prospects within the aerospace sector, our exceptional engines aftermarket, sustained profit growth and our strong balance sheet.

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1. Structural market growth

The aerospace market has recovered rapidly and is characterised by long-term structural growth, including record aircraft order books. Within this market, our aero engines and structures technology is embedded on all the world's most successful, highest volume platforms. 

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2. Exceptional engines aftermarket

We have a uniquely wide risk and revenue sharing partnership (RRSP) portfolio. On these programmes, our work is largely complete when the engine is built, while we are entitled to lifetime share of the aftermarket profits. Our RRSPs will deliver an estimated £22bn of lifetime net cash inflow (£5.7bn NPV) for the business. 

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3. Sustained profit growth 

Our profit more than doubled in 2023, and is expected to expand significantly again to reach our 2025 targets. We will see increasingly higher drop through from the strong Engines division growth in the years ahead. 

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4. Strong balance sheet

Melrose launched a £500m share buyback programme in October 2023, and this will be completed by the end of September 2024. Beyond that, we will retain our disciplined approach to capital allocation as our engine RRSPs continue to mature.