Industrial turnaround specialist Melrose reported increased earnings for the half year and said while economic conditions are difficult to predict, it is confident it is in a good position to benefit from market opportunities.
Melrose, which buys underperforming manufacturing businesses, turns them around and then sells them, said headline profit before tax for the six-month period to 30 June 2012 rose to £81.9m, up 16 per cent from the same time last year. Revenue for the period was rose to £564.6m from £516.6m in 2011.
Pre-tax profit fell to £46.3m from £58.9m after the group incurred exceptional costs primarily from acquisition and refinancing.
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Chairman Christopher Miller said he was pleased with the group's results and its strategy to 'buy, improve, sell'.
"We have now successfully completed our next acquisition...Economic conditions are difficult to predict at present but we are confident that our group companies place us in a good position to benefit from market opportunities."
Looking ahead Melrose noted the recovery from the slump of 2008/09 has been slow and patchy and this seems set to continue.
"However, our businesses trade in sound end markets with good prospects such as the energy, oil & gas and mining sectors. Order books remain strong and our major investment programme is yet to fully reap its benefits. The addition of Elster will give us the opportunity, over several years, of enhancing existing growth prospects."
The interim dividend has been maintained at 2.6p.
CJ
