Melrose Industries slides in first half as it snaps up Nortek

Melrose Industries posted its interim results for the six months to 30 June on Thursday, reiterating that Brush was performing in line with expectations in a “tough market”.

The FTSE 250 firm’s headline operating profit was £3.9m, down from £5.9m a year ago.

Total revenue at Brush was £104.7m, down 13% at constant currencies from £116.4m.

Its loss for the period from continuing operations, after exceptional items and intangible asset amortisation, was £8.8m, narrowing from the £12.3m figure in the first half of 2015.

Melrose had net cash at the half year of £51m.

The board declared an interim dividend of 1.4p to be paid on 1 September, to shareholders on the register at close of business on 5 August.

Additionally, Melrose confirmed an agreement to purchase 100% of the issued share capital of Nortek for $1.436bn was entered into on 6 July, valuing Nortek at an enterprise value of $2.810bn.

The proposed acquisition of Nortek was being funded by a fully underwritten 12-for-1 rights Issue and a new $1.250bn debt facility.

“Since 2005 Melrose has focused on acquiring businesses to help them fulfil their potential,” said Melrose chairman Christopher Miller.

He added that the board is grateful to have shareholders who “support that vision” and is proud of the value it has created for them.

“Earlier this month we announced that Melrose is in the process of acquiring the US manufacturing group Nortek.

“This represents the next chapter in the Melrose story.

“Since founding Melrose, we have created over £2.8bn of value for our shareholders and we believe that Nortek presents a significant opportunity for Melrose to build substantially on that track record,” Miller explained.