Melrose says full year may be at lower end of range

Melrose Industries said trading for the Elster Group it agreed to sell to Honeywell in July was strong in the ten months to October, although its Brush business experienced challenging end market conditions.

Sales at Elster were up 14% versus last year at constancy currency, 6% if excluding the acquisition of Eclipse in November last year. Melrose said the sale of the group was on course to complete in first the quarter of next year.

The Brush business saw first half sales drop 26% at constant currency compared with last year. In the four months since the half year the situation has improved, with revenue for the ten months to October down 17%.

Melrose said trading was in line with expectations for the year, albeit potentially towards the lower end of the range.

“Recent results from industrial companies globally have been somewhat downbeat and it may be that this trend continues for some time.

In these uncertain circumstances, Melrose is optimistic that a suitable acquisition will be identified bringing with it another opportunity to create substantial value for shareholders.”