Melrose launches £250m share buyback scheme

Engineering powerhouse Melrose has announced a further £250m share buyback scheme, following on from a £500m buyback launched last October.
Melrose says it’s on track for its 2024 guidance of securing revenue between £3.6bn and £3.75bn, but has updated its 2025 projections to £3.8bn, to “reflect supply chain challenges and disposals”.
Melrose’s focus turned to becoming a pure-play aerospace company, whilst Dowlais effectively became an automotive platform.
Group revenue has risen in the first half of 2024 by 12% to £1.742bn, after its engines division reported a 21% growth. Its structures division grew by just 6%, after being suppressed by supply constraints and customer destocking. There was a 52% increase in adjusted operating profit to £260m.
A statutory operating loss of £62m was adjusted by items including restructuring costs of £70m, amortisation charges on assets acquired in business combined of £128m and acquisition and disposal-related costs.
New Chair designate, Chris Grigg, will be appointed to the Board with effect from October 1.
Justin Dowley will step down from the Melrose Board on 31 March 2025 and Grigg will succeed Dowley as the group’s Non-Executive Chairman.
Peter Dilnot, Chief Executive Officer of Melrose Industries PLC, today said: “We have made strong progress in the first half, driven by Engines aftermarket performance and business improvement actions, despite industry-wide supply chain challenges. We remain confident of delivering on our 2024 and 2025 guidance.
“Our positive outlook and disciplined capital allocation enables us to invest more in attractive organic growth opportunities, as well as continue shareholder returns through our growing dividend and the further share buyback programme announced today. We have positive momentum, a clear strategy and excellent growth opportunities ahead.”