News Releases

06 September 2018 07:00 Download the pdf

2018 Half Year Results

Melrose Industries PLC today announces its interim results for the six months ended 30 June 2018.

Highlights

Proforma results assume that GKN plc (“GKN”) was owned for the full six month period, adjusted results and statutory results only include GKN for the 73 day period from 19 April 2018 when it was acquired by Melrose.

 

Proforma 1 results

Adjusted 2 results

Statutory
results

 

£m

£m

£m

Revenue

6,203

3,062

2,937

Operating profit/(loss)

501

280

(256)

Profit/(loss) before tax

401

240

(303)

Profit/(loss) after tax

307

184

(276)

 

Diluted earnings per share

6.3p

5.8p

(8.9p)

Average number of shares for diluted EPS (million)

4,858

3,045

3,045

 

  • Melrose is trading in line with the Board’s expectations for 2018
  • The statutory loss occurred due to booking significant acquisition related charges but only including 73 days of trading from GKN
  • The Board has declared an interim dividend of 1.55 pence per share (2017: 1.4 pence), an 11% increase on last year
  • GKN offers an outstanding opportunity which is meeting the Board’s expectations; no black holes found
  • All GKN businesses are being managed successfully on a standalone basis, freed from head office bureaucracy and with medium and long-term improvement plans agreed
  • Significant investment projects in development including:
    • a planned new global technology centre for Aerospace in the UK
    • substantial automotive factory improvements in Europe
    • state-of-the-art aerospace engine repair facility in Asia
  • Whilst trading conditions in some Nortek businesses are competitive, new breakthrough technologies with exciting prospects have been developed
  • Net debt is in line with expectations at £3.4 billion, with Group half year leverage being 2.4x EBITDA3

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

“Melrose is delighted with the acquisition of GKN, which has the significant potential for improvement which we identified when we made our offer. Plans have been agreed and are now being implemented to realise the full potential of GKN’s world leading, but currently underdeveloped, businesses. This is an exciting opportunity for Melrose, its shareholders and all other stakeholders.”

1. Proforma results, which are presented on an adjusted basis, are described in the glossary to the Interim Financial Statements and assume that GKN was owned for the full period
2. Considered by the Board to be a key measure of performance. The adjusted results are described in the glossary to the Interim Financial Statements
3. Last 12 months proforma¹ operating profit before depreciation and amortisation

 

A conference call with webcast for institutional investors will be held at 12:30pm BST today.  

Institutional investors should register for the call and / or webcast. Please email melrosecall@montfort.london before 11am today.

Enquiries:

Montfort Communications: +44 (0) 20 3514 0897

Nick Miles +44 (0) 7973 130 669 / Charlotte McMullen +44 (0) 7921 881 800

miles@montfort.london / mcmullen@montfort.london