Melrose Industries Confirms Profit Targets Amid Challenges

Melrose Industries has confirmed it is on track to meet its profit targets despite ongoing supply chain challenges in the aerospace sector, projecting an adjusted operating profit of between £550m and £570m for this year and £700m by 2025. The Birmingham-based manufacturer reported a 7% year-on-year revenue increase, driven by a notable 17% surge in its Engines division, while its Structures division experienced a modest 1% growth. Chief Executive Peter Dilnot emphasized the strength of the business and the positive outlook for cash flow improvements in the coming year, aided by the resolution of manufacturing issues. Despite a 12.46% drop in shares to date, the company remains optimistic about its future, citing strong aftermarket performance and strategic partnerships with major customers. Additionally, Begbies Traynor has forecast elevated insolvency levels for UK firms, highlighting broader economic pressures, including rising employment costs and prolonged high-interest rates. Melrose's continued growth reflects its effort to navigate these industry-wide challenges effectively.