Melrose Industries

Melrose Industries (LSE: MRO)

Currency in GBP

Last close As at 04/12/2023

GBP5.15

▲ 56.40 (12.30%)

Market capitalisation

GBP6,165m

Overview
Price performance
Financials
Research
Thematics

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

Industrials |
Update

17.11.23

Melrose Industries — Increasing trajectory

Industrials |
Flash note

07.11.23

Melrose Industries — GE partnership expansion

Industrials |
Update

24.10.23

Melrose Industries — Engine for growth

Industrials |
Flash note

12.09.23

Melrose Industries — Clarity on GTF helpful for investors

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Sector

Industrials

Equity Analyst

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 (%)

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.