REG - Melrose Industries - Engines Investor Event

Melrose IndustriesAnnouncement

17/10/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231017:nRSQ2816Qa&default-theme=true

RNS Number : 2816Q  Melrose Industries PLC  17 October 2023

 

 

 

17 October 2023

 

 

                            MELROSE INDUSTRIES PLC

 

Engines Investor Event

 

Ahead of the Engines Investor Event taking place today and tomorrow in
Trollhättan, Sweden, Melrose Industries PLC ("Melrose") publishes the
following statement.

 

The Engines Investor Event in Sweden

 

A well attended Capital Markets Event was held in London in May 2023,
immediately post the demerger, for Aerospace.  This included new guidance for
2023 and 2025.

 

Melrose is today following up this event with a more in-depth Engines Investor
Event to explain and showcase the full quality of this business which will
deliver industry leading performance.

 

Current trading for the Engines business

 

Melrose can now confirm that the Engines adjusted operating margin this year
will continue the outperformance seen in the first half of the year, against
the 2023 target disclosed at the May Capital Markets Event.  The full year
margin for 2023 is therefore expected to be c.24%, beating the previous margin
target by c.2 percentage points.  This extra progress significantly underpins
the 2025 targets by reducing the further required improvements from 6
percentage points (explained in May) to 4 percentage points.  Melrose has
full confidence that the 2025 targets will be achieved and current trading
makes that more secure.

 

The biggest single reason for this outperformance is the continued strong
aftermarket demand, at high margin, for the Engines business.  A full Melrose
trading update will be given in November, which is expected to continue this
strong margin story.

 

The Engines Investor Event key messages:

 

·    Melrose has become a focused aerospace business with 80% of profit
expected to come from Engines and over 80% of this being from aftermarket

·    Public guidance given in May is being exceeded

·    Engines has OEM-level capability and responsibility for selected
engines which gives more technical and commercial advantages than normal for a
Tier 1 supplier

·    Engines is a leading independent Tier 1 partner to all major engine
OEMs with its lucrative and diverse RRSP portfolio providing balance and
resulting opportunities

·    Engines has strong long-term demand for its proprietary breakthrough
technologies which will shape new ways for the industry to improve

·    Two ongoing industry consequences of the recent GTF updates are
likely, namely generally higher aftermarket pricing in a supply constrained
industry and legacy engines potentially flying for longer - both of these will
be beneficial to Melrose

 

All information from the Engines Investor Event will be available on the
Melrose website after the event concludes.

 

Peter Dilnot, Aerospace Chief Executive (and Melrose CEO designate), said:

 

"The quality of our Engines business continues to shine through with margins
exceeding expectations.  The investor event this week will highlight our
unique and diverse portfolio of engines contracts entering their lucrative
aftermarket phase, together with strong demand for our proprietary
breakthrough technology, such as additive fabrication.  With positive
momentum evident, we are confident of delivering strong returns and achieving
our 30% margin target in the years ahead."

 

 

-ends-

 

 

 

Enquiries:

 

Montfort Communications: +44 (0) 20 3514 0897

Nick Miles +44 (0) 7739 701634 / Charlotte McMullen +44 (0) 7921 881800

miles@montfort.london (mailto:miles@montfort.london) /
mcmullen@montfort.london (mailto:mcmullen@montfort.london)

 

Investor Relations: Chris Dyett +44 (0) 7974 974690

ir@melroseplc.net (mailto:ir@melrosePLC.net)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCMFBATMTABBIJ