Melrose Industries announced in its trading update for Q1 that its trading is in line with expectations which helped shares gain 4.4% to 112p in early morning trade on Tuesday.
Melrose Industries buys and sells engineering companies. The group said that its trading has been consistent with the year’s forecasts in its latest trading update for Q1.
In line with industry patterns, the Aerospace division continues to develop, with like-for-like sales up 6%, while the Automotive and Powder Metallurgy divisions are still hampered by supply, with combined like-for-like sales down 4%, well below underlying consumer demand levels.
As supply restrictions ease, the Melrose Board is optimistic that the well-advanced restructuring steps will position all of the company’s businesses to realise their full potential.
Furthermore, significant progress has been made in regaining inflation. The financial performance will be second-half weighted due to the time lag effect, but Melrose is confident that the impact of inflation can be compensated by the steps adopted.
Melrose will host an Investor Day on GKN Aerospace on June 8th at 2.30 pm to discuss the company’s entire potential, including growth and improvement prospects, strong long-term cash flow dynamics, and innovative sustainable technologies.
Simon Peckham, CEO of Melrose Industries stated, “Your Group continues to make good progress whilst dealing with the broader world challenges.”
“We are increasingly seeing growth return to our Aerospace business, which is being rapidly well positioned for its future, and are confident of demonstrating the full quality of our largely restructured automotive businesses. We are well set to realise shareholder value as conditions improve.”