Melrose Industries, the former conglomerate turned aerospace specialist, saw profit more than double thanks to a rebound in the aviation sector and raised profit forecasts for next year even higher.
Now under the leadership of Peter Dilnot – his first day as CEO was yesterday – Melrose reported year profits of £420 million, up from £186 million.
Next year, they could go as high as £570 million.
Melrose makes parts for most jets – clients include Aerospace, GE, Rolls Royce and Boeing.
Boeing’s problems with its 737 jets may hit Melrose, but only in the short term, says Dilnot, who has been at Melrose for five years.
He admitted: “The trouble at Boeing is not good for the industry at large.”
Melrose shares slipped 28pp to 603p today, but it is still valued at £8 billion, making it one of the top 50 companies on the UK stock market.
It says it is fully committed to its London listing, even though 40% of its share owners are US based.
“The market has responded well to our equity case,” said Dilnot.
A dividend of 5p -- £66 million – will be paid.
Company founders including Simon Peckham, who built the business from an acquisitive AIM listed operation, said they would step down earlier this year.
There are issues with supply due to raw material shortages.
Dilnot said: “We have upgraded guidance for 2024 and are confident about unlocking significant further potential of the business going forward.”
Revenues rose 17% to £3.35 billion.
