REG - Rosebank Industries - Trading Update

ROSEBANK INDUSTRIESAnnouncement

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RNS Number : 6291I  Rosebank Industries PLC  24 November 2025

24 November 2025

ROSEBANK INDUSTRIES PLC

("ROSEBANK" OR THE "COMPANY" OR THE "GROUP")

 

TRADING UPDATE

 

HIGHLY CONFIDENT FULL YEAR EXPECTATIONS WILL BE ACHIEVED; STRONG ADJUSTED
OPERATING MARGIN GROWTH; EVALUATING FURTHER M&A

 

Rosebank announces the following trading update for the period of 1 July to 31
October 2025 ("the Period"), which includes only ten weeks ownership of
Electrical Components International ("ECI") following its acquisition on 19
August 2025.

 

Ownership of ECI

 

Since taking ownership of ECI the performance of the business has been as
expected and key actions have been taken in line with our pre-acquisition
plan. These actions create the foundation for achieving our stated targets and
include:

 

·    The agreement of a strategic plan with ECI management that aligns
with Rosebank stated shareholder returns

 

·    An initial 24 month restructuring programme now agreed with ECI
management which includes reducing the number of sites by over a quarter. This
will cost c.$80 million and uplift adjusted operating profit by c.$30 million,
spread over the next two years

 

·    An agreed plan in place to reduce central costs, including the
closure of the duplicate ECI head office, situated in St Louis, which will be
closed this month

 

·    The appointment of a new Finance Director at ECI, Diego Laurent, who
was previously the Finance Director of GKN Powder Metallurgy, when owned by
Melrose Industries PLC

 

·    As planned, a material reduction of ECI's leverage(1) to
approximately 2.5x EBITDA, which has been well received by customers and
suppliers and will lead to better trading terms

 

·    The exit of costly working capital customer factoring and supplier
finance arrangements totalling in excess of $100 million, in line with our
pre-acquisition assumptions and built into year-end net debt(2) guidance

 

·    Agreeing with customers the full recovery of all tariffs incurred,
which are being invoiced and paid

 

·    Active re-engagement in the search for potential North American
bolt-on acquisition opportunities for ECI, including engaging with several
specific targets

 

·    The enhancement of the Rosebank head office team, building to a size
that can fulfil the public company requirements of the Group, whilst at the
same time exploring new potential acquisition opportunities

 

·    The integration of Rosebank and ECI finance systems and policies,
rolling out Rosebank's  Group reporting OneStream system at all ECI sites

 

·    A full review of the ECI Balance Sheet acquired, with all ECI sites
visited by the year end, which has not identified any surprises

 

·    Confirmation that the intended step-up to main market is on track for
Q2 next year.  As part of this the conversion of US GAAP to IFRS has been
completed without any significant differences identified

 

ECI trading performance in the Period

 

We are highly confident of achieving the full year 2025 expectations for ECI
that were set out at acquisition.

 

Revenue in the Period was as expected and net new business wins that should
convert to orders in the medium-term were significantly ahead of last year.

 

Adjusted operating margin was 15.7% in the Period, 2.2 percentage points
higher than the same period last year, continuing to build on the momentum
seen in the first half of the year when adjusted operating margin was 15.1%.
With improvement plans already underway we expect further operating margin
progress through 2026.

 

Electrification and Industrial revenue was flat in the Period.  Sector
activity in construction, agriculture and the broader transportation markets
remain constrained for now, however adjusted operating margin in the Period
was up 1.9 percentage points compared to the same period last year.

 

Appliance and HVAC revenue was up 2% in the Period, and adjusted operating
margin was up 3.0 percentage points compared to the same period last year.

 

Net debt(2)

 

Based on the initial cash performance and Balance Sheet position we expect net
debt(2) to be below current market expectations of $550 million, and
leverage(1) at the year-end to be approximately 2.5x adjusted EBITDA.

 

Outlook

 

We are highly confident of achieving 2025 expectations. There is an agreed
plan that will deliver the intended returns for this investment.  We are
excited to work with an experienced management team to achieve the potential
of ECI. Fast and effective actions have already been taken.  We also have a
number of other opportunities that we are pursuing and are confident that
Rosebank will achieve its strategy.

 

 

 

 

Simon Peckham, Chief Executive of Rosebank Industries plc, today said:

"As promised, a lot has been achieved in the first few weeks of our ownership
of ECI. 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."

 

ENDS

 

Notes:

1.     Calculated using a full year of trading for ECI

2.     Including cash and cash equivalents less interest-bearing loans and
borrowings, excluding operating lease liabilities

 

 

Enquiries:

Rosebank Industries plc:

Simon Peckham                               Chief Executive

Matthew Richards                           Group
Finance Director

 

Investor Relations:

Chris Dyett                                        +44 (0)
7974 974 690, ir@rosebankindustries.com (mailto:ir@rosebankindustries.com)

 

Montfort Communications:

Nick Miles                                         +44 (0)
7739 701 634, miles@montfort.london (mailto:miles@montfort.london)

Charlotte McMullen                       +44 (0) 7921 881
800, mcmullen@montfort.london (mailto:mcmullen@montfort.london)

 

Investec Bank plc                             +44
(0)20 7597 5970

(Nominated Advisor, Joint Broker & Financial Advisor)

Carlton Nelson

Christopher Baird

 

 

 

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