Melrose Industries (LN: MRO)

Currency in GBP

Last close As at 25/01/2023


−2.65 (−1.83%)

Market capitalisation


Melrose Industries acquires underperforming industrial companies. It undertakes operational improvements through restructuring and investment before disposing of the assets. Deals are individually financed through new equity (and debt) with proceeds returned in cash post value realisation.

Interim results were in line with expectations with no change to full year guidance. Automotive margins made progress on H221 but were held back by the industry supply chain/chip issues and inflationary pressures, both of which are set to improve in H2. Aerospace margins continue to recover which, with restructuring programmes all now underway and the market starting to recover, bodes well for achieving targeted 14% margin.

Latest Insights

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Melrose Industries — Releasing the potential


Melrose Industries — Two are better than one


Melrose Industries — Aerospace rising



Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • Christopher Miller

    Executive Vice Chairman

  • Geoff Martin


  • Simon Peckham


Balance Sheet

Forecast net debt (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 8.4 30.1 (4.9)
Relative 4.4 17.7 (7.2)
52 week high/low 165.8p/95.5p


Melrose has a proven track record for its ‘buy, improve, sell’ strategy having completed four transactions since 2005 generating an IRR for shareholders of c 20%. The latest transaction, GKN (acquired in 2018) is well advanced in restructuring, hence the decision to demerge the Automotive business to enable it to develop its EV opportunities as a standalone entity while Melrose/Aerospace is expected to be re-rated ex automotive and offer a platform for the next stage of Melrose development.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2020A 7723.0 521.0 (41.0) (0.6) N/A 13.2
2021A 7496.0 734.0 252.0 4.1 34.6 9.1
2022E 7718.0 831.0 307.0 5.6 25.4 7.3
2023E 8334.0 1016.0 466.0 8.8 16.1 5.7



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