Melrose warns on profits, pulls dividend

Manufacturing group Melrose issued a profits warning on Monday and pulled its final dividend as it reported a "significan deterioration" in end markets due to the coronavirus pandemic.

In a market update, the company, which turns around struggling businesses, said: "Given the current uncertainty around future demand as governments carry out unprecedented actions in many countries, the group is unable to provide a meaningful outlook at the current time, but is closely monitoring and adapting to all developments."

"Melrose is acting appropriately with regard to its employees and cost base and taking advantage of various governmental schemes wherever it is suitable to do so, primarily in the UK and Europe. "

"In many of our businesses (including Melrose) senior salaried staff are taking a temporary 20% pay cut to help support the business."