Melrose 2018 interim results
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."
