Melrose Industries (LON: MRO) shares edged higher Tuesday after the company released a trading update for the July 1 to October 31 period.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The British manufacturing firm told investors it achieved a “materially stronger performance” in the second half of this year for profit and cash generation.
Trading for the full year is in line with the company's expectations, with revenue for the period up 14% compared to last year and operating profit “substantially higher.” Melrose added that inflation in its businesses is being “successfully recovered.”
The company also told investors that good progress is being made in its preparation for the proposed demerger of its Automotive and Powder Metallurgy businesses, which is on track to complete in the first half of 2023.
Meanwhile, cash generation is also on track in the second half of the year, and the company said it is set to achieve materially higher operating cash generation than in the first half.
“Trading is going to plan and the demerger timetable for Automotive and Powder Metallurgy is on schedule,” commented Simon Peckham, Chief Executive of Melrose Industries. “Our businesses are performing well, achieving a materially stronger performance in the second half of this year for profit and cash generation, and coping well with the current inflationary environment.”
Melrose Industries shares are up 0.8% at the time of writing.
