Melrose Industries (LSE: MRO)

Last close As at 27/03/2024

GBP6.70

74.80 (12.57%)

Market capitalisation

GBP8,254m

Melrose Industries is a focused aerospace group with activities in engine components and structures, operating in both metallic and composite materials. The group has significant risk reward sharing partnership (RRSP) investments on multiple engine programmes.

As part of the change of strategy to a focused aerospace group, Simon Peckham (CEO) and Geoffrey Martin (CFO) will step down on 7 March 2024 to be replaced by internal appointments: Peter Dilnot, currently COO, will become CEO, and Matthew Gregory, currently CFO GKN Aerospace, will become group CFO.

Latest Insights

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Industrials | Update

Melrose Industries — Continued outperformance

Industrials | Update

Melrose Industries — Increasing trajectory

Industrials | Flash note

Melrose Industries — GE partnership expansion

Industrials | Update

Melrose Industries — Engine for growth

Sector

Industrials

Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • Christopher Miller

    Executive Vice Chairman

  • Geoff Martin

    FD

  • Matthew Gregory

    CFO

  • Peter Dilnot

    CEO

Balance Sheet

Forecast net debt (£m)

1126

Forecast gearing ratio (%)

31

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 7.12 20.46 102.31
Relative 6.71 17.21 107.54
52 week high/low 170.2p/95.5p

Financials

Melrose Industries’ shares have been re-rated over the past year, reflecting the company becoming a pure aerospace group and its improving operational performance. Attractions remain from the Risk and Revenue Sharing Partnerships (RRSPs) and associated cashflows along with the investments being made, such as in additive fabrication, to drive organic growth beyond the already positive aerospace market.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 2954.0 292.0 89.0 4.1 145.2 28.7
2023A 3350.0 532.0 331.0 19.1 31.2 15.1
2024E 3677.0 699.0 456.0 26.7 22.3 11.5
2025E 4028.0 839.0 575.0 34.2 17.4 9.4

Research

Update

Industrials

Melrose Industries — Engine for growth

Flash note

Industrials

Melrose Industries — Clarity on GTF helpful for investors

Update

Industrials

Melrose Industries — Building returns

Update

Industrials

Melrose Industries — The stars are aligned

Update

Industrials

Melrose Industries — Positive trajectory

Update

Industrials

Melrose Industries — Releasing the potential

Flash note

Industrials

Melrose Industries — Two are better than one

Update

Industrials

Melrose Industries — Aerospace rising

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