Melrose Industries’ half-year trading statement reiterates the tough climate the company is currently operating in.
The engineering group saw its share price fall markedly in mid-morning trading, down nearly 7% to 200.50.
The company - which specialises in buying underperforming manufacturing operations and improving the businesses - ,said that revenue for its subsidiary Nortek was up 3% compared to the same period last year which, as expected, is a better performance than in the first half of the year.
This means that Nortek revenue for the first ten months of the year is up 1% and margin improvement continues to be seen. Melrose is on track to achieve a performance consistent with expectations for this year and cash generation remains strong.
The Air Management division has a positive market backdrop and the operational improvements available in the heating, ventilation and air conditioning (HVAC) business are significant.
Security & Smart Technology has continued to deliver a decent performance within a market place which is relatively flat and its margin could eventually exceed the group’s original expectations should part of a lower margin contract come to its conclusion during 2018.
Ergonomics continues to deliver good margins with future growth expected as we focus on new product development and the digital offering.