Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Melrose Industries Puts on 5% Following Profitable Final Results

LONDON -- Shares in Melrose  (LSE: MRO  )  leaped 12.80 pence, or 4.9%, to reach 272.80 pence in early trade this morning, following the release of its audited final results for the year ending 31 December 2012.

The British-based investment company saw revenues rise to 1.55 billion pounds in 2012, compared to 1.08 billion pounds the previous year. Pre-tax profits increased to 214.3 million pounds against 2011's 154.7 million pounds, while headline diluted earnings per share were also up, coming in at 16.1 pence having previously stood at 15.8 pence.

The industrial turnaround specialist pinpointed its 1.8 billion pounds August acquisition of Elster as a particular highlight of the year. The company is a big German manufacturer of utility meters, and Melrose stated that its improvement plan is one year ahead of schedule: operating margin at Elster increased by 1.9 percentage points to 14.1%, while operating profit was up 11% with revenue 2% lower, at constant currency.

Chairman of Melrose Industries, Christopher Miller, commented:

Since inception less than 10 years ago Melrose has created over [2 billion pounds] of shareholder value.  We are very pleased with Elster and are already one year ahead of our improvement plan, increasing margins faster than expected.  Existing Melrose businesses have performed well and Elster is proving to be another great opportunity to create more value for Melrose shareholders.

Shareholders saw the final dividend raised by 4% to 5 pence per share, leading to a full-year dividend of 7.6 pence. This puts Melrose on a yield of 2.9%, with the company having seen reasonable growth over the last few years. 

Indeed, the shares are now on a five-year high -- if investors had bought into the company at 2009's low of 32.9 pence, they would now be sitting quite happily on eightfold returns!

Melrose's growth appears to have slowed down in recent years, but if you're looking for companies that have strong potential to soar in price, then we've pinpointed our favorite growth share from the FTSE 100. Our analysts have produced a free report in which they evaluate its finances and risks, and its growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- it's completely free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2296681, ~/Articles/ArticleHandler.aspx, 9/28/2016 11:45:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 12:20 PM
MRO $170.00 Down +0.00 +0.00%
Melrose CAPS Rating: No stars