Melrose Industries PLC Trading Statement (0373X)
21 November 2017 - 6:01PM
UK Regulatory
TIDMMRO
RNS Number : 0373X
Melrose Industries PLC
21 November 2017
21 November 2017
MELROSE INDUSTRIES PLC
TRADING UPDATE
This trading update refers to the period from the half year 1
July 2017 to 29 October 2017.
Revenue for Nortek was up 3%(1) compared to the same period last
year which, as expected, is a better performance than in the first
half of the year. This means that Nortek revenue for the first ten
months of the year is up 1%(1,2) and margin improvement continues
to be seen. Melrose is on track to achieve a performance consistent
with expectations for this year and cash generation remains
strong.
The Air Management division has a positive market backdrop and
the operational improvements available in the heating, ventilation
and air conditioning (HVAC) business are significant. Security
& Smart Technology has continued to deliver an excellent
performance within a market place which is relatively flat and its
margin could eventually exceed our original expectations should
part of a lower margin contract come to its conclusion during 2018.
Ergonomics continues to deliver excellent margins with future
growth expected as we focus on new product development and the
digital offering.
There are some headwinds facing Nortek in 2018, namely an
adverse exchange rate movement on products imported from China and
increased costs of materials; however, the Melrose Board remains
confident of achieving its objectives for Nortek.
As announced at the interim results the market for Brush has
been very difficult. This has continued to worsen, consistent with
the most recent negative trading statements elsewhere in the
sector. The current order intake by Brush would result in a low
single-digit margin during 2018 but, as stated at the time of the
interim results, a full review of Brush is underway to improve its
performance and shareholders will be updated in due course.
1. At constant currency and excluding revenue from exited sales
channels. Full year revenue for the Nortek Group in 2016, excluding
exited sales channels and at US$=1.30, was GBP1,798 million.
2. Revenue growth this year excludes GBP29 million of sales in
2017 from these channels before they were fully exited.
-ends-
Enquiries:
Montfort Communications:
Nick Miles, Charlotte McMullen: +44 (0) 20 3514 0897
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFBLLLDFFFFBX
(END) Dow Jones Newswires
November 21, 2017 02:01 ET (07:01 GMT)
Melrose Industries (LSE:MRO)
Historical Stock Chart
From Apr 2024 to May 2024
Melrose Industries (LSE:MRO)
Historical Stock Chart
From May 2023 to May 2024