Melrose Industries PLC (LSE:MRO, OTC:MLSPF), having spun out its GKN Automotive business last month, today hiked its full-year guidance after trading in the first four months of the year was “materially ahead” of expectations.
The shares jumped 6% to 449.38p in early trading.
Stressing it is now purely focused on aerospace engines and structures, the FTSE 100-listed group reported a 19% revenue increase for the first four months of 2023.
For the full year, it now expects revenues of £3.35-3.45bn, with an underlying operating profit of £340-360mlm or EBITDA of £495-515mln, both prior to PLC costs, which are now expected to be reduced to around £30mln from circa £45mln before.
Current analyst forecasts are for £3.4bn, it said, with adjusted operating profit for Aerospace of £324mln or once PLC costs are removed, £279mln.
Aerospace has “huge embedded value”, said chief executive Simon Peckham, with the board seeing potential in the group to achieve EBITDA of £1bn “within the next few years”.