Melrose rises despite first half loss
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FTSE 100 outfit Melrose Industries (LON:MRO) saw its shares rise by 3.95% to 231.50p (as of 10:50 BST) despite dropping in to a pre-tax loss for the first half due to costs linked to the acquisition of GKN. Because of the timing of the purchase, GKN only contributed 73 days worth of revenues to the results for the six months ended 30th June. Management said that trading over the year to date was as expected, with the board increasing the interim dividend by 11% to 1.55p.
Chairman Christopher Miller said that: “Melrose is delighted with the acquisition of GKN, which has the significant potential for improvement which we identified when we made our offer. Plans have been agreed and are now being implemented to realise the full potential of GKN’s world leading, but currently underdeveloped, businesses. This is an exciting opportunity for Melrose, its shareholders and all other stakeholders“.
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