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.
Industrials |
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Industrials |
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Industrials |
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Industrials |
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Christopher Miller
Executive Vice Chairman
Geoff Martin
FD
Simon Peckham
CEO
Forecast net debt (£m)
1023
Forecast gearing ratio (%)
27
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (2) | (13.5) | 110.1 |
Relative | 2.8 | (9) | 100.5 |
52 week high/low | 170.2p/95.5p |
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 |