Shares in Rosebank Industries PLC (AIM:ROSE) got a small boost as Citi initiated coverage on the new vehicle for six former executives of 'buy, improve, sell' outfit Melrose.
The Rosebank board are using the same business model as their former vehicle: buy industrial businesses that need 'improving' in some way, do that, then sell them on for a profit.
The company was created last year, with cornerstone backing from Aviva PLC, with the aim of emulating the success of Melrose Industries PLC (LSE:MRO, OTC:MLSPF).
The first acquisition, ECI, was bought in August 2025. Rosebank's target is to improve EBIT margins from 13% to 18%, a key driver behind the intention to double shareholder value over three to five years.
"With a strong management track record on delivering turnarounds, we initiate with a 'buy' rating," said Citi, with a share price target of 430p versus the last close at 338p on Thursday.