(Alliance News) - Melrose Industries PLC on Wednesday reported a narrowed loss in 2023 thanks to higher revenue, and it reinstated payment of a final dividend.
However, Melrose shares were down 4.8% to 602.00 pence early Wednesday in London.
Birmingham, England-based Melrose is a 'pure-play' aerospace firm, organised into Engines and Structures divisions from the former GKN business. It spun off its automotive engineering businesses as Dowlais Group PLC last April. On Thursday it said it will operate solely under the GKN Aerospace brand for customers, though will retain the Melrose name for the company.
Melrose said its loss before tax narrow to GBP8 million in 2023 from GBP328 million in 2022, as revenue rose by 13% to GBP3.35 billion from GBP2.95 billion.
Aerospace adjusted operating profit was GBP420 million, beating guidance of between GBP400 million and GBP410 million and up from GBP186 million in 2022.
Looking ahead to 2024, Melrose guided for revenue of between GBP3.6 billion and GBP3.75 billion and aerospace adjusted operating profit of between GBP550 million and GBP570 million.
It said Thursday's operating profit guidance was 6% above its prior guidance at the midpoint. The improvement is driven by Melrose's expectation that margin in the Engines division will improve to 28% this year from 26% last year.
Melrose declared reinstated its final dividend, declaring a 3.5 pence payout for a total of 5.0p for 2023. For 2022, Melrose paid a first and second interim dividend, totalling 2.325p.
Melrose also is conducting a GBP500 million share buyback. This was launched in October last year and so far has repurchased GBP93 million in shares.
By Tom Waite, Alliance News editor
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Melrose (MRO)