Melrose Industries (LSE: MRO)

Currency in GBP

Last close As at 28/11/2023

GBP5.15

56.40 (12.30%)

Market capitalisation

GBP6,165m

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. The company has commenced a £500m share buyback programme.

Latest Insights

View More

Industrials | Update

Melrose Industries — Increasing trajectory

Industrials | Flash note

Melrose Industries — GE partnership expansion

Industrials | Update

Melrose Industries — Engine for growth

Industrials | Flash note

Melrose Industries — Clarity on GTF helpful for investors

Industrial Science Device

Sector

Industrials

Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • Christopher Miller

    Executive Vice Chairman

  • Geoff Martin

    FD

  • Simon Peckham

    CEO

Balance Sheet

Forecast net debt (£m)

1023

Forecast gearing ratio (%)

27

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (2) (13.5) 110.1
Relative 2.8 (9) 100.5
52 week high/low 170.2p/95.5p

Financials

The aerospace cycle is in strong recovery mode and Melrose Industries, assisted by the restructuring actions, is taking full advantage at both the top line and profit level. Internal momentum and market recovery provide confidence that management’s target returns set out for FY25 will be achieved, offering a further positive valuation catalyst.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 2957.0 292.0 62.0 4.1 111.9 22.1
2023A 3410.0 505.0 288.0 17.2 26.7 12.3
2024E 3605.0 638.0 415.0 26.2 17.5 9.5
2025E 4068.0 842.0 616.0 36.0 12.7 7.1

Research

Flash note

Industrials

Melrose Industries — Clarity on GTF helpful for investors

Industrial Science Device

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

Update

Industrials

Melrose Industries — Accelerating sustainability

Thematics

thematic

Industrials

Deutsches Eigenkapitalforum (EKF) 2023 industrials

thematic

Industrials

The long and winding road

thematic

Industrials

Quantum computing: A booming industry

thematic

Industrials

UK housebuilders

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free