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Shares in Melrose Industries PLC on Thursday fell as lower 2025 sales guidance appeared to take the shine of results which the company said beat its expectations. The Birmingham, England-based aerospace firm with Engines and Structures divisions that were formerly part of GKN cut adjusted 2025 revenue guidance to £3.8 billion from £4.0 billion before to reflect supply chain challenges and disposals. Shares in Melrose fell 7.5% to 544.53 pence in London on Thursday. The wider FTSE 100 was down 0.3%. Nonetheless, Melrose said it was on track for 2024 guidance and 2025 profit targets, despite those supply chain challenges. The company maintained 2024 revenue guidance of £3.6 to £3.75 billion and adjusted operating profit guidance of £550 to £570 million. In the first half of 2024, the pretax loss widened to £105 million from £62 million, a year prior. Revenue climbed 6.7% £1.74 billion from £1.63 billion. Diluted losses per share were 6.1p compared with 3.0p. The dividend was increased to 2.0p per share from 1.5p. Alongside the increased dividend, Melrose announced a £250 million share buyback to be completed in the next 18 months. Engines revenue grew 21% to £720 million with adjusted operating profit up 46% to £212 million and adjusted operating margin up to 29.4%, the firm stated. The performance was driven by the strength of growth initiatives and the after-market including repairs and defence. Structures revenue growth of 6% to £1.02 billion reflected planned civil destocking offset by defence growth. Chief Executive Peter Dilnot 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.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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