Melrose Results Presentation Deck
Highlights
Melrose
Continuing operations
Revenue
Operating profit/(loss)
Profit/(loss) after tax
Diluted earnings per share
Free cash flow ²
Net debt²
Leverage ²
Group
■
I
■
Proforma¹
(post Return
of Capital)
2021
£m
3,828
223
109
2.5p
75
1,029
1.5x
Buy
Improve
Sell
Adjusted² results
2021
£m
3,828
223
109
2.2p
75
300
0.5x
2020
£m
3,624
(11)
(80)
(1.7)p
29
3,399
3.4x
Statutory results
2021
£m
3,540
(137)
(151)
(3.1)p
n/a
n/a
n/a
2020
£m
3,386
(618)
(585)
(12.1)p
n/a
n/a
n/a
Melrose is trading ahead of expectations, with better profit margins, better earnings per share and significantly lower net debt²; building
the Group's encouraging momentum
The commitment, made on acquisition by Melrose, to improve significantly the funding of the GKN UK defined benefit pension schemes
has been delivered ahead of schedule with the funding position of the schemes transformed for the better. The funding deficit of
approximately £1 billion has currently reduced to approximately £150 million. Consequently the annual contribution halves to £30 million
with no ongoing requirement to contribute from future disposal proceeds
Net debt² at 30 June 2021 was significantly lower at £300 million; proforma net debt² at 30 June 2021 is £1,029 million after adjusting for
the announced Return of Capital to be settled on 14 September 2021 (1.5x proforma leverage²)
Free cash flow² generation in the first half was £75 million; all the investment in restructuring costs, capital expenditure and sustainable
technology has been self-funded from trading cash flows in the Period
The Group recorded an adjusted2 earnings per share of 2.2 pence. Adjusting for the accretion post the announced Return of Capital and
share consolidation, the Proforma EPS2 increases to 2.5 pence. The statutory loss per share was 3.1 pence
The Nortek Air Management and Brush disposals both completed in the Period and Melrose has exchanged contracts for the sale of
Nortek Control for $285 million, all of which are consistent with doubling shareholders' money, or more, on each acquisition
1. Proforma results are presented to give a meaningful measure of ongoing performance, adjusting for the announced Return of Capital and the associated share consolidation
2. Described in the glossary to the 2021 Interim Financial Statements, released on 2 September 2021View entire presentation