Following good results in March there has been consistent price rises and decent volumes going through ,

any one else following them , I am a holder since FKI , so glad to see any good news ,

Melrose Industries bosses to land £200m-plus share bonanza
The quartet of executives who run Melrose are likely to be handed shares worth more than £150m, Sky News learns.
15:17, UK,
Sunday 19 March 2017
LONDON STOCK EXCHANGE

Melrose management team to share windfall




By Mark Kleinman, City Editor

Top executives at one of Britain's best-performing industrial groups are close to landing a share bonanza worth more than £200m, placing it among the largest one-off payouts ever made by a FTSE-100 company.

Sky News has learnt that the management team of Melrose Industries, which specialises in turning around underperforming engineering businesses, could receive in the region of £206m from an incentive scheme due to pay out in the next few months.

The details, which will be disclosed in Melrose's annual report‎ next month, relate to a five-year bonus scheme approved by the company's shareholders in 2012.

Melrose, which owns manufacturing names such as Brush and Nortek, has generated billions of pounds of profit for its investors since it was set up more than a decade ago.

Sources said that an accounting note in Melrose's recent annual results, which disclosed a £22.8m charge for employers' National Insurance‎ contributions, hinted at the scale of the potential share scheme payout.

‎One insider said the current 40-day average share price of about 210p would equate to a total award to Melrose's top team of £206m, although the final figure had yet to be determined this weekend.

A number of top shareholders in Melrose contacted by Sky News said they were comfortable with the size of the payout.

"We signed up to this knowing the scale of the upside for management," said one.

"They only make money if we do."

Melrose's top team is led by chairman Christopher Miller, deputy chairman David Roper, Simon Peckham, the chief executive, and chief financial officer Geoff Martin.

Between them, the four men are expected to receive roughly 75% of the aggregate payout, which is calculated by handing participants in the bonus plan 7.5% of the total shareholder gain.

A further 20 senior managers would share the remainder of the multimillion pound rewards under the scheme.

Melrose has sold companies including metering business Elster and Bridon, an industrial cable-maker, during the last few years.

The share bonanza will come amid growing scrutiny of boardroom pay at the UK's top companies, with Theresa May vowing last year to crack down on corporate excess.

Ministers are starting to formulate responses to a green paper published in the autumn, while a report on corporate governance and executive pay is expected to be published by the Department for Business, Energy and Industrial Strategy shortly.

While some companies, such as Thomas Cook and Imperial Brands, have faced revolts over much smaller management incentives than those at Melrose, the industrial turnaround group has generally enjoyed strong support from its shareholders.

Since its inception, Melrose has returned roughly £3.2bn to investors by selling a string of companies for big profits.

A person close to Melrose pointed out that its executives' pay was strongly aligned to shareholder returns and that its chief executive's basic salary was £450,000 - well below the average for a company with a market value of more than £4bn.

This year's share scheme will be the second to crystallise at Melrose since the company was established.

In 2012, executives shared a £126m windfall under the previous incentive plan.

The company's management team have never sold shares other than to settle tax liabilities, and will be obliged to hold onto half of the latest‎ share awards for at least two years.

Melrose, which declined to comment, will seek shareholder approval for a further incentive scheme at its annual meeting later this year.

StockMarketWire.com
Melrose Industries' ownership percentage of GKN has increased to 94% and is expected to reach 100% in June 2018.

Further guidance on future plans for GKN will be given at the Melrose half year results announcement in the first week of September.

The board intends to review the existing Melrose remuneration arrangements and expects to consult with shareholders in the coming months.

Within Nortek, Air Management has continued to invest in new product development programmes which are expected to result in product launches over the next year as well as improving order pipelines.

Security and Smart Technology recently acquired IntelliVision for $35 million, a US company that develops and implements video and artificial intelligence analytics technology. This acquisition gives Security and Smart Technology access to a range of recognition and detection analytics.

A lower margin contract manufacturing arrangement winds down this year with sales of approximately $150 million in 2017. The company has retained the higher margin sensors associated with this arrangement of roughly $40 million and is replacing the balance with other products but the rollout of these has been slower than expected.

Ergotron is at the initial stages of a sale process, with US corporate tax likely being due on the excess of the sale price above $350 million.

Foreign currency movements are creating a headwind for 2018. If exchange rates stay as they were at the end of April, for the balance of the year this will cause a headwind of approximately 11% to the Nortek results.

StockMarketWire.com
Engineering group Melrose Industries said it was trading in line with its expectations for 2018, with revenue growing in its aerospace and power metallurgy divisions but remaining flat in automotive.

In a trading update for the four months through October, Melrose, which recently acquired rival GKN, said aerospace was performing well, with revenue up over 6% on-year.

Good progress had been made on margin,including improvement in the performance of North America, it added.

Power metallurgy revenue grew 9%, with improved margins, giving the company confidence that a 14% margin target could be achieved in the medium term.

In automotive, margins shrunk as revenue remained flat. Melrose, however, said remained confident that operational improvements were achievable and would improve performance in 2019 and beyond.

'Melrose has a proven business model, which has been successful over many years and through several economic cycles,' chairman Christopher Miller said.

'We are confident that there is an outstanding opportunity to make significant and lasting improvements to the performance of the GKN businesses.'

'Whilst certain end markets may be unpredictable, the group is on track to meet our expectations for this year.'

'We are excited by the future prospects of the group and look forward to delivering significant value for shareholders.'