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Why Melrose Is Up 23% This Year

Jon Wallis
October 19, 2012

LONDON -- Melrose (LSE: MRO.L  ) has advanced 23% to 244 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.

The company -- which buys underachieving manufacturing businesses, improves their fortunes, and then sells them on -- seems to have impressed investors with a series of very positive statements.

During March, Melrose published its annual results for the year to Dec. 31, 2011. Revenues were up 11% for the full year, including a 14% rise in the second half. Pre-tax profits gained an impressive 32%, at 161 million pounds, while the order intake advanced 22% to stand at 1,217 million pounds. Earnings per share were up 20%, at 28.8 pence, with an 18% increase to the full-year dividend.

During May, an interim management statement revealed revenues for the year to date were up