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Rosebank Industries PLC on Monday reported strong progress following the completion of the $1.9 billion reverse takeover of Electrical Components International Inc The London-based acquisitions vehicle completed the purchase of the St Louis, Missouri-based electrical manufacturing firm in August. Rosebank said the performance of the business has been ‘as expected’ since taking ownership of ECI, as it provided a trading update for the period from July 1 to October 31, which includes 10 weeks of ownership of ECI. The company said it has agreed a two-year restructuring programme of ECI management, which includes reducing the number of sites by over a quarter. It said this will cost $80 million and increase adjusted operating profit by $30 million, spread over the next two years. The duplicate ECI head office in St Louis will be closed this month, the firm said. ‘We are highly confident of achieving the full year 2025 expectations for ECI that were set out at acquisition,’ Rosebank Industries said. Revenue in the four months was as expected, the company added. Net new business wins that should convert to orders in the medium-term were ‘significantly ahead’ of last year, it said. Adjusted operating margin was 15.7% in the recent four months, up 2.2 percentage points against the same period last year. Rosebank said it expects to see further operating margin progress through 2026. Electrification and Industrial revenue was flat in the period. The company said sector activity in construction, agriculture and the transportation market ‘remains constrained for now’ but the adjusted operating margin was up 1.9 percentage points. Appliance and Heating, Ventilation, & Air Conditioning revenue was 2% higher during the period, while the adjusted operating margin improved by 3.0 percentage points. Rosebank Industries said it expects net debt to be below current market expectations of $550 million. It is ‘highly confident’ of achieving 2025 expectations, it said. ‘As promised, a lot has been achieved in the first few weeks of our ownership of ECI,’ said Chief Executive Simon Peckham. ‘We have an agreed plan with ECI management to deliver on our promised shareholder returns, to double their investment in three to five years, and are confident in achieving it. We are now also looking into a number of other opportunities.’ Shares in Rosebank Industries were up 1.1% at 346.76 pence on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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