Hints and tips:
...Melrose is now expecting to make adjusted operating profit of between £550mn and £570mn in 2024....
...Melrose, whose GKN is a 4 per cent partner in the project, estimated the cash cost of the recall at £200mn....
...Melrose Industries, the former UK turnaround specialist, has ruled out any imminent deals saying it will focus on building up its booming aerospace business instead....
...Together with the remaining Melrose aerospace business, the combined value of the two rose 5 per cent on the day. Melrose’s decision to spin off Dowlais was a change of direction....
...[but] I think there is room for a Melrose on the London market.”...
...Melrose was already something of a hangover of a bygone time....
...One reason is the dearth of big sticker prices, meaning most PLCs are already comfortably within reach of retail investors....
...Shareholders in Melrose will get shares in Dowlais commensurate with their holding in Melrose....
...The Dowlais demerger leaves Melrose with GKN’s aerospace business, which Melrose aims to grow to making £1bn of profit in the coming years....
...The state of Melrose’s other main markets in aerospace are not much better. The difference is that Melrose believes its turnround of the automotive business is complete....
...Melrose shareholders will hold shares in the holding company....
...Melrose has a “buy, improve, sell” business model....
...A former investment banker, he used to chair alternative asset manager Intermediate Capital Group and heads the board at FTSE 100 conglomerate Melrose Industries....
...Melrose had no operations in Ukraine or Russia, he added. Like other western aerospace companies, Melrose sources between 15 and 20 per cent of its titanium from Russia....
...In 2018, when Melrose Industries won the backing of 52 per cent of GKN shareholders following a hostile takeover bid, Melrose chairman Christopher Miller spoke of his company’s “plan to create a UK industrial...
...The market for articles about how UK plc is on sale has remained buoyant, after all....
...Without those tweaks Melrose reported a statutory operating loss of £137m in the six months to end-June....
...In the process, Melrose has generated substantial returns for executives and shareholders....
...The disposal is Melrose’s largest deal since its controversial takeover in 2018 of GKN for £8bn....
...Melrose, whose strategy is to buy, improve and sell, is in the process of restructuring all three divisions....
...Melrose shares fell 5 per cent as a result. Since Melrose bought Nortek for $2.8bn in 2016, operating margins at the business have almost doubled to 15.3 per cent last year....
...Melrose will provide further details of its plans for the division at an investor day this month....
...Shares in Melrose were trading 3 per cent lower at 174.02p by the early afternoon....
...Melrose is a production line, spitting out reconditioned assets....
...Its sales rose 5 per cent last year, helped by growing zeal for cleaner air during the pandemic, and accounted for 14 per cent of Melrose’s 2020 revenues....
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