Melrose returns to profit as business arms recover

Birmingham-based Melrose Industries says it is trading ahead of expectations after posting a rise in both revenue and profits for the six months to June 30.

The company’s turnover rose to £3.82bn over the period, while it returned to profit, posting a surplus of £109m.

Melrose said it has lowered the pension deficit at GKN UK from £1bn to £150m over the period, while the sales of Nortek Air Management and Brush has also boosted its bottom line.

Justin Dowley, chairman of Melrose Industries, said: “We are continuing to see recovery in all our businesses with trading ahead of expectations. Encouragingly, our aerospace business is now weighted towards the expected narrowbody recovery. Our automotive and powder metallurgy businesses are poised for strong growth as soon as the well publicised chip shortage abates and the progression in margins is ahead of plan with more to come. As with all its promises, Melrose has delivered its acquisition funding commitment to GKN pensioners early. We have scope on our balance sheet to return more money to shareholders next year and we are excited by the upcoming possibilities.”