Melrose PLC Board has declared an interim dividend of 0.75 pence per share (2020: nil), which will be paid on 15 October 2021 to shareholders on the register at the close of business on 10 September 2021.
Other financial highlights include:
▪ Melrose is trading ahead of expectations, with better profit margins, better earnings per share and significantly lower net debt; building the Group's encouraging momentum
▪ The commitment, made on acquisition by Melrose, to improve significantly the funding of the GKN UK defined benefit pension schemes has been delivered ahead of schedule with the funding position of the schemes transformed for the better. The funding deficit of approximately £1 billion has currently reduced to approximately £150 million. Consequently the annual contribution halves to £30 million with no ongoing requirement to contribute from future disposal proceeds
▪ Net debt at 30 June 2021 was significantly lower at £300 million; proforma net debt at 30 June 2021 is £1,029 million after adjusting for the announced Return of Capital to be settled on 14 September 2021 (1.5x proforma leverage)
▪ Free cash flow generation in the first half was £75 million; all the investment in restructuring costs, capital expenditure and sustainable technology has been self-funded from trading cash flows in the Period
▪ The Group recorded an adjusted earnings per share of 2.2 pence. Adjusting for the accretion post the announced Return of Capital and share consolidation, the Proforma EPS increases to 2.5 pence. The statutory loss per share was 3.1 pence
▪ The Nortek Air Management and Brush disposals both completed in the Period and Melrose has exchanged contracts for the sale of Nortek Control for $285 million, all of which are consistent with doubling shareholders' money, or more, on each acquisition
▪ On 14 September Melrose is returning £729 million, 15 pence per share, to shareholders. In addition, the Melrose Balance Sheet has spare capacity for a significant further Capital Return next year
