Melrose sees better second half from Brush
Manufacturing investment turnaround firm Melrose Industries said the challenging end market conditions experienced by turbogenerator maker Brush during 2015 had continued into 2016 as it reported an interim headline operating profit of £3.9m compared with £5.9m last year.
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Revenues fell 13% to £104m. The company said its loss for the period from continuing operations, after exceptional items and intangible asset amortisation, was £8.8m against £12.3m.
However, Melrose said strategic actions being taken by Brush management in relation to its customer base and its cost structure, coupled with the expected higher factory loadings during the second half of 2016, would help the unit's future performance.
“For turbogenerators the key market driver is gas turbine orders and the most recent industry data shows that gas turbine orders in the Brush output range increased by 7% in 2015 vs 2014, although this activity level was not sustained in to 2016. Total 2015 gas turbine orders were still some 42% below the 2011 peak,” Melrose said.
“Brush is not immune to these economic headwinds and current trading conditions remain challenging. However, with strategic and cost structure actions being taken in the business and improving factory loadings, a better trading performance in the second half of 2016 is anticipated in line with our previous expectations.”
"The world economy remains unpredictable and this uncertainty may impact the level of investment in the manufacturing sector."