Melrose Industries sees 'significant disruption' from Covid-19

Manufacturing business Melrose Industries pulled guidance said sales fell 20% in the four months to April 30 as the coronavirus pandemic and associated factory closures "significant disruption" to operations.

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The FTSE 100-listed firm said its aerospace division was expected to see a net sales decline of around 8% year-on-year, while its automotive and powder metallurgy units were expecting a combined annual drop in sales of 31%.

Melrose also stated it was not in a position to provide any trading guidance for the year ahead as conditions remained "too unpredictable to forecast" but had cancelled its 2019 final dividend, reduced capital expenditure, salary sacrifices and furloughing of staff to conserve cash.

Chief executive Simon Peckham said: "Melrose has a track record of managing its businesses successfully in all market environments and crucially our recent cash generation performance shows we have been able to maintain the strength of the balance sheet to position the group's businesses in the best way for the future."

Melrose shares were up 1.69% at 99.86p at 0845 BST.