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 ,

StockMarketWire.com
Melrose FY pretax profit slipped to £128.9m, from £144.0m. Revenue was £1.38bn, from £1.47bn. It proposed a final dividend of 5.3p a share, from 5.0p, taking the total up 5% to 8.1p, from 7.75p.

Chairman Christopher Miller said he was delighted with Melrose's performance in 2014 given underlying headline pretax profits were up 21% in constant currencies to £213m.

"Elster has had another very successful year with profits up by two thirds since acquisition," he said.

"Our strategy is working: for a net shareholder investment of £170 million, and with a current market capitalisation of £3.0 billion, we have created £2.8 billion of shareholder value.

"We look forward to a further acquisition in due course to continue our success."

Highlights:
§ Elster profits up by two thirds (circa £80 million) in the two full years of ownership

§ Elster now delivering revenue and order intake growth, up +9% and +6% respectively in the second half of 2014

§ All three Elster divisions achieved profit growth in 2014 (Gas +13%, Electricity +23% and Water +11%)

§ Brush (revenue -3% and profit -7%) suffering from a tough OEM generator end market

§ In November 2014 Bridon sold for £365 million, doubling shareholders' original investment

§ Return of Capital of £200 million (18.7p per share) to be paid on 16 March 2015 alongside a 13 for 14 share consolidation

§ Net debt at 31 December 2014 of £501 million, equal to 1.8x EBITDA. Adjusting for the Return of Capital in March 2015, proforma leverage equal to 2.5x EBITDA

Melrose Industries featured in our weekly round-up of announcements from AIM. More at http://tinyurl.com/nfr2eks

Update on Acquisition and Rights Issue
Melrose announces that at midnight (Eastern Daylight Time) on 6 August 2016 the 'window shop period' in respect of its takeover proposal for Nortek Inc. ("Nortek") expired without Nortek having received a Superior Proposal.
In addition, as previously announced, all anti-trust conditions in relation to the Acquisition have been satisfied, plus all shareholder resolutions regarding the Acquisition and the fully underwritten Rights Issue were passed almost unanimously on 25 July 2016.
Consequently, Melrose is taking the necessary steps to implement the Rights Issue, with provisional allotment letters being posted today and the expectation that the CREST accounts will be credited and nil paid rights will be admitted for trading tomorrow. Assuming this occurs, the expected date for Completion of the Acquisition is 31 August 2016.

Redburn comment today:
"As potential deals for Melrose go, buying Nortek makes complete sense. We doubt if Nortek will experience much growth under Melrose but the margin opportunity is glaring and there are acquirers for Nortek’s businesses when Melrose is ready to sell. When Nortek’s restructuring is done, Melrose will be on 11x PE. This leaves 70% upside over 2-3 years. We upgrade to Buy.

The danger with writing this note prior to now is an interloper could have intervened in Melrose’s purchase of Nortek. The call felt binary. If such an event had happened Melrose’s shares would have tumbled 30-40% to where they started. On early Sunday morning (7 Aug) the ‘window shop’ period for others to bid for Nortek expired.

The merits of the Nortek deal are so straight forward we are surprised a rival bid did not emerge. However, Nortek is best restructured and then broken up. That is how it will end up under Melrose. The value creation from this is seen in in Fig 1 – Melrose’s new starting margins of 8% will end up at 14-15% in three years. We have based our valuation metrics on a TERP of 140p following the £1.7bn rights issue.
If Nortek can be restructured and improved such that it generates 16% margins then it will leave the Melrose group margin at 14.9% in 2019. Even without much sales growth at Nortek, Melrose’s share price could be worth 246p under this margin progression (pre RI)."

2 March 2017
MELROSE INDUSTRIES PLC

AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2016


Melrose Industries PLC today announces its audited results, which are reported under IFRS, for the year ended 31 December 2016.

Highlights

§ Melrose's 2016 results have exceeded market expectations:
‒ Brush, in its eighth year of Melrose ownership, is still experiencing adverse trading headwinds and management continues to take appropriate action
‒ Nortek, acquired on 31 August 2016 for an enterprise value of £2.2 billion, is responding well to Melrose ownership and has materially outperformed, albeit in a short four month period
§ In comparison to the same four month period last year, Nortek has achieved:
‒ An increase to underlying1 operating profit of 35%
‒ Underlying1 operating margin of 13.4%, up 4.1 percentage points
‒ Underlying1 profit conversion to cash of 134%
§ Since acquisition, Melrose has significantly reduced the debt levels in Nortek and also increased capital investment in the businesses to enhance long-term value
§ Future operating margin improvement possibilities for Nortek are better than originally thought
§ The Melrose Group achieved an underlying1 profit before tax of £96.4 million (2015: £2.4 million), despite declaring a statutory loss before tax of £69.3 million (2015: £30.7 million) after non-trading and acquisition costs
§ In spite of adverse foreign exchange translation effects on US$ debt, Melrose Group net debt has been reduced since acquisition to £541.5 million, reflecting very strong cash generation
§ A final dividend of 1.9 pence per share is proposed (2015: 0.5 pence2)
§ The Melrose Board has started the process of looking for the next acquisition


1 Considered by the Board to be the best measure of performance. A reconciliation of the statutory result
to underlying performance is set out in the Finance Director's Review
2 Adjusted by a bonus factor of 18.8% related to the Rights Issue completed in August 2016


Christopher Miller, Chairman of Melrose Industries PLC, today said:

"This has been a tremendous year for Melrose and we are delighted with the performance of Nortek which is exceeding expectations. All aspects of the business are being improved and its prospects are better than originally thought. As a result we have started looking for the next acquisition that will materially enhance shareholder value."

An analysts' meeting will be held today at 11.00 am at Investec, 2 Gresham Street, London EC2V 7QP.

Enquiries:

Montfort Communications:
Charlotte McMullen/Sophie Arnold +44 (0) 20 3514 0897



CHAIRMAN'S STATEMENT


I am pleased to report on our 14th set of annual results since flotation in 2003. Since the date of the first acquisition in 2005, Melrose has created net shareholder value of £4.8 billion and achieved an average annual return for a shareholder of 26% (as at 1 March 2017).

CALENDAR YEAR 2016

2016 has been another successful year. In February 2016, £2.4 billion was returned to shareholders following the sale of Elster in December 2015. In August, Nortek was acquired for £2.2 billion, financed from the net proceeds of a successful rights issue raising £1.6 billion, with the balance funded through debt of £0.6 billion.

The presentation of this year's results has been dominated by the Nortek acquisition, which, when combined with Brush, has more than tripled the revenue of the Melrose Group this year.

Melrose Group revenue for the year was £889.3 million (2015: £261.1 million) and, despite declaring a statutory loss before tax of £69.3 million (2015: £30.7 million), the underlying profit before tax was £96.4 million (2015: £2.4 million).

At Nortek, the Security & Smart Technology and Ergonomics divisions performed particularly well, driving outperformance, but all businesses are responding well to the improvement measures we have implemented to date. Brush continues to face challenging end-market conditions but we remain positive about its long-term prospects. Further details of these results are contained in the Chief Executive and Finance Director's reviews.

As ever, I would like to thank all our employees for their efforts in helping to produce this outstanding performance.

DIVIDEND

The Board proposes to pay a final dividend of 1.9 pence per share (2015: 0.5 pence2), making a total of 2.2 pence for the year (2015: 1.0 pence2), in line with its progressive annual dividend policy. This will be paid on 16 May 2017 to those shareholders on the register at 7 April 2017, subject to approval at the Annual General Meeting (AGM) on 11 May 2017.

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.'