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07 September 2023 07:00 Download the pdf

2023 Half Year Results




Trading ahead of expectations, upgraded outlook, share buybacks to be commenced early

Melrose Industries PLC (“Melrose”, the “Company” or the “Group”), an Aerospace Engines and Structures Group, today announces its interim results for the six months ended 30 June 2023 (“the Period”).




Adjusted1 results

Statutory results






Continuing operations










Aerospace operating profit/(loss)





Operating profit/(loss) (post PLC costs)





Profit/(loss) before tax





Diluted earnings per share





Net debt1





Melrose Group – at constant currency3

Trading ahead of expectations – upgraded guidance

  • Upgraded full year guidance: Aerospace 2023 adjusted1 operating profit range increases by over 8% to between £375 million and £385 million with a higher Engines margin than previously guided
  • Net debt leverage1 reducing towards 1x EBITDA1 by the end of 2023 (before share buyback programme)
  • This outperformance further underpins the achievement of the 2025 guidance

Half year results

  • Aerospace revenue of £1.63 billion, growth of 19%3 over last year (15% including businesses being exited)
  • Aerospace adjusted1 operating profit of £175 million, more than 2.5x the prior year
  • Aerospace adjusted1 operating margin of 10.7% an increase of 5.8 percentage points on the prior year and 3.2 percentage points on the second half of 2022
  • Adjusted1 diluted earnings per share increased to 7.5p (2022: 0.2p). Statutory loss per share was 3.0p (2022: 16.8p)
  • Restructuring and repricing progressing well combined with improved quality and arrears reduction
  • Net debt1 of £553 million in line with expectations, reducing leverage1 to 1.5x (pro-forma 2022 opening leverage18x)

Earlier shareholder returns

  • Higher confidence and strong progress allows Melrose to commence early its share buyback programme, at the beginning of October 2023, starting with a £500 million buyback over 12 months and being well placed to continue thereafter keeping leverage1 comfortably within previous guidance
  • Continuation of the progressive annual dividend, with an interim dividend of 1.5 pence per share declared

New Investor Event - Engines

  • To be held on site in Sweden, the global HQ for the Engines business, during October 2023 to showcase in more detail and colour the full quality of the Engines business, including a new target for Engines operating margins to rise above 30% post 2025

Management changes

  • Melrose is now a long-term aerospace group with exceptional organic growth prospects. In line with this new strategic direction, on 7 March 2024 Simon Peckham and Geoffrey Martin will step down as Melrose Chief Executive and Group Finance Director respectively, to be replaced by Peter Dilnot (currently Melrose Chief Operating Officer) and Matthew Gregory (currently Chief Financial Officer GKN Aerospace) respectively.  Thus providing management continuity as Melrose becomes a pureplay aerospace group.  Simon Peckham, Geoffrey Martin and Christopher Miller will not stand for re-election as directors at the 2024 AGM 

By division – at constant currency3


  • Engines revenue growth of 19% in the first half with adjusted1 operating profit nearly doubling and adjusted1 operating margin up to 24.5%
  • Engines aftermarket growth of 46% driven by recovering flying hours and the Group entering the lucrative aftermarket ‘sweet spot’ allowing an above market performance


  • Structures revenue growth of 18%3 (13% including businesses being exited) and adjusted operating margin reaching 2.5% in the first half versus loss-making in the first half of 2022
  • Civil ramp-up delivering 24% growth. Defence repricing and portfolio work accelerated with around 25% of the renegotiations planned by 2025 being successfully concluded in the last few months

Demerger of GKN Automotive, GKN Powder Metallurgy and GKN Hydrogen

  • The demerger of the GKN Automotive, GKN Powder Metallurgy and GKN Hydrogen businesses from Melrose into Dowlais Group PLC successfully completed on 20 April 2023 as scheduled

Upgraded guidance for 2023 full year (assuming US $ = 1.25 average exchange rate for the year)


  • Revenue of between £3.35 billion and £3.45 billion
  • Aerospace adjusted1 operating profit between £375 million and £385 million
  • Aerospace adjusted1 EBITDA of between £525 million and £535 million
  • PLC costs reducing to £30 million
  • Net debt leverage1 reducing towards 1x EBITDA1 by the end of 2023 (before share buyback programme)

Simon Peckham, Chief Executive of Melrose Industries PLC, today said:

“We are delighted with these results and the outlook for Melrose.  Whilst there is still work to do, the business is very capable of producing over £1 billion of EBITDA and providing excellent returns for shareholders.  This is further demonstrated by the confidence to start early the share buyback programme.  Chris, Geoff and I are pleased to hand over to Peter and Matthew to continue the great performance achieved by Aerospace, and to guide this handover during the coming months and into 2024.  Melrose shareholders own a truly special business, with rapidly increasing profits, exceptionally strong long-term cash flows and a disciplined shareholder focused approach to capital.”

  1. Described in the glossary to the 2023 Interim Financial Statements
  2. Results for the period ended 30 June 2022 have been restated for discontinued operations and the one for three share consolidation
  3. Like-for-like growth is calculated at constant currency against 2022 results and excludes businesses being exited




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