Melrose reported revenue growth of 14% over the four months to 31 October.
Revenue growth was driven by its Engines division, which saw a 28% uplift due to strong demand for equipment sales and aftermarket services. Structures revenue grew by 5%, with performance improving since the half-year mark, helped by strong Defence demand.
Underlying operating profit was “significantly higher” than the prior year, and in line with group expectations.
Full-year guidance has been reiterated, pointing to revenue and underlying operating profit of £3.5bn and £635mn at the midpoints of its target range. Free cash flow is expected to exceed £100mn.
The shares were broadly flat in early trading.
Our view
HL view to follow.
Melrose key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.