Melrose restores dividend after solid second half

Melrose Industries restored its dividend after the turnaround group's performance was at the top of expectations in the second half of a loss-making year.

The company swung to an operating loss of £338m in the year to the end of December from a profit of £318m a year earlier as revenue fell to £8.8bn from £11bn. Adjusted operating profit fell to £340m from £1.1bn.

Melrose announced a final dividend of 0.75p a share and said it planned to return to its established payout policy. The company scrapped its 2019 dividend to shore up its finances during the Covid-19 crisis.

Adjusted free cash generation rose 6% to £628m and net debt fell 13% to £2.85bn.

"Trading was at the top end of management expectations throughout the second half of 2020," Melrose said. "With the worst of the Covid-19 crisis we hope behind us and the actions taken to reshape the group, the board expects to return to its progressive dividend policy for future periods."