Melrose profit rises as acquisition trail continues

Engineering firm Melrose reported stronger full year profit after a robust performance at its main energy and lifting divisions.

The FTSE 250 engineering buyout firm also said it continues to look for its next acquisition. Melrose lost out to rival firm Colfax Corporation in an attempted bid for Charter International last year.

Pre-tax profit rose to £161.2m in the year ended 31 December 2011 compared to £121.7m the year before. Sales for the year rose 11% to £1.15bn.

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"We continue to be confident that there is more improvement to come driven by the positive momentum of our order books and strong end markets," Melrose said in a statement.

"We also continue to look for our next acquisition and current market circumstances mean that we are, if anything, more certain that a suitable acquisition opportunity will arise," it added.

Melrose also confirmed that chief operating officer Simon Peckham will take over as chief executive at its next annual general meeting.

The final dividend has been increased by 20% to 8.4p per share.

CJ