Shares of Melrose Industries PLC (LON: MRO) gained 5% after the company said it agreed improved financial covenants with its banks.
Under the terms of the arrangement that will run until the end of 2022, banks agreed to rearrange their primary borrowing arrangements. After 2022, the loans will revert to the original covenants.
“We thank our banks again for their continued support which gives us the headroom and flexibility to continue to focus on cash generation and adapt the group as needed. Melrose also retains over £1bn of cash liquidity. We are confident that we can position the group to produce good returns for shareholders,” said Simon Peckham, Melrose’s chief executive.
Interested in investing after today’s move?
XTB gives investors access to thousands of UK and international stocks,
including fractional shares from just £1.
Explore stocks with XTB →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to invest in the stocks making the news?
Go from following the market to investing in it, with access to thousands
of stocks across major UK and international markets.
See available stocks →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Own the stocks you’re reading about
Invest in real shares across the UK, US and other major global markets
through XTB, all from one investment account.
Explore XTB shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
You don’t need to buy a whole share
Fractional shares let you invest from just £1, giving you more control
over how much you put into individual companies.
Explore fractional shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to see how XTB works first?
Explore the platform with an XTB demo account before deciding whether
you want to invest with real money.
Try the XTB demo →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
This news comes two weeks after the GKN-owner reported a 27% revenue drop in the second quarter.
Melrose share price gained 5% today to further enhance weekly gains. Despite opening at a 3-month low yesterday, shares of Melrose are trading 9% higher this week.
