Melrose Industries trading in line with FY expectations

In an update for the period from 1 July to the end of October, the GKN parent said revenue was up 14% on the same period a year earlier, while operating profit was "substantially higher".

"As previously communicated, inflation in the Melrose businesses is being successfully recovered, using all necessary external and internal measures," it said.

Melrose said momentum in the aerospace segment improved in the first half, with sales up 11%, and "encouragingly trading has been stronger again since, with the average revenue per month in the period being 6% higher than that seen in the first half".

In addition, operating margins are "notably better" than in the first half.

"Aerospace is positioned well to benefit from the strong momentum being seen into next year," Melrose said.

Meanwhile, revenue in the automotive and powder metallurgy businesses rose 19% on the year. The company also noted that lifetime business bookings in the year to date are trending around 30% higher than revenue and just under 40% of these wins are for pure electric vehicles (BEV).

Chief executive Simon Peckham said: "Trading is going to plan and the demerger timetable for automotive and powder metallurgy is on schedule.

"Our businesses are performing well, achieving a materially stronger performance in the second half of this year for profit and cash generation, and coping well with the current inflationary environment."