2 May 2024
MELROSE
INDUSTRIES PLC
Trading
Update
Strong
start to the year, full year expectations unchanged
Melrose Industries PLC
("Melrose") announces the following trading update for the quarter from 1
January to 31 March 2024 ("the Period"). All numbers are
calculated at constant currency.
Revenue was up 8% on the same period
in 2023 with Engines showing strong progress, up 21%, and
Structures flat, as expected. Ongoing restructuring projects and
business improvement actions are progressing well. As a
result, adjusted operating profit is up substantially on the prior
year, in line with our expectations and recently upgraded
guidance. Our end markets continue to be positive with
strong demand and increasing backlogs in both civil and defence,
and favourable Engines aftermarket dynamics.
Engines
The strong performance in Engines
was driven by aftermarket with our RRSPs and repair activities
growing above the divisional average. Engine OE volumes
continue to increase, albeit they are still constrained by
industry-wide supply chain issues. Given the higher
profitability of aftermarket, the resulting business mix is
generating strong margins, in line with previous
guidance.
Structures
The flat reported revenue in
Structures, as expected, reflects the planned exit of non-core work
and destocking by a major customer as highlighted at our full year
results. The division is making encouraging progress from
business improvement actions, with the majority of benefits
expected in the second half and into 2025. These improvements
include the recent agreement to transfer the St. Louis site to our
customer, Boeing Co., as part of our planned defence portfolio
reshaping.
Outlook
The Group's full year guidance is
unchanged, with an expected 33% year-on-year increase in adjusted
operating profit to £560 million at the midpoint (pre-PLC costs),
modestly second half weighted as previously indicated.
Peter Dilnot, Chief Executive
Officer of Melrose said:
"We have had a strong start to the
year with a particularly good performance from our Engines
division. We expect this momentum to continue throughout the
year. Longer term, the Group is well positioned to deliver
ongoing growth and margin expansion supported by positive end
markets and excellent business improvement momentum. We are
confident about unlocking significant further potential in the
years ahead."
-ends-
Enquiries:
Investor Relations: Chris Dyett +44
(0) 7974 974690
ir@melroseplc.net
Montfort Communications: +44 (0) 20
3514 0897
Nick Miles +44 (0) 7739 701634 /
Charlotte McMullen +44 (0) 7921 881800
miles@montfort.london / mcmullen@montfort.london