Melrose Industries shares grow on signs of recovery

Shares in FTSE 100 engineer Melrose Industries (LON:MRO) climbed 14.93% to 115.50p (as of 16:00 BST) after the company posted results for the half year ended 30 June. Revenues were down by 26% relative to the same period of the previous year and statutory pre-tax losses were four times larger than in the comparative, but the majority of this increase was due to non-cash items. Management said that trading during the summer had outpaced expectations and there were strong signs of recovery in most markets.

CEO Justin Dowley commented: “These are extraordinary times which we have addressed with rigorous cash management and decisive restructuring actions; recently, and encouragingly, we have started to see trading improving in some key end markets. Crucially, we own good businesses with significant improvement opportunities and have an experienced management team with an excellent track record. We have delivered good returns in tough times before and as we continue to make the strategic changes needed to position our businesses within their changed market environments, we are confident of doing so again“.