|The 4 directors are about to take a cool £164m in total under the 2012 incentive plan and are proposing another feeding frenzy under a new "incentive" plan. I'm sorry, but this is excessive. They have done very well for shareholders, but excessive greed is not really on. I'm voting NO on the resolution. I wonder what the large holders think? Taking 7.5% of the increase in value for a company this size and diluting holders by 5% isn't really on. 1% would be more than adequate.|
|Seems to have done the trick!|
|This news,as expected,confirms that tracker funds will be buying as Melrose (with a premium listing once again)will be eligible for inclusion in the FTSE indices ie the 100 or 250 as appropriate.24 March 2017Melrose Industries PLCNotification of transfer to a Premium ListingMelrose Industries PLC ("Melrose" or the "Company" and, together with its subsidiaries from time to time, the "Group") announces that it is proposing to transfer the listing category of its ordinary shares (the "Ordinary Shares") from a Standard Listing to a Premium Listing on the official list of the UK Listing Authority ("Official List") under Rule 5.4A of the Listing Rules issued by the Financial Conduct Authority (the "Transfer").No shareholder approval is required in connection with the Transfer. It is anticipated that the Transfer will take effect at 8.00 a.m. on 26 April 2017.|
|The payouts might seem large but this company is the very creation of the management.It's not as if Miller or Roper etc joined a long established company,they built Melrose from scratch.|
|I think the pay awards are excessive but I suppose other companies pay large awards for failure. Melrose are extremely successful at what they do. I await the big acquisition - better start saving up.|
|Melrose Industries bosses to land £200m-plus share bonanza
The quartet of executives who run Melrose are likely to be handed shares worth more than £150m, Sky News learns.
Sunday 19 March 2017
LONDON STOCK EXCHANGE
Melrose management team to share windfall
By Mark Kleinman, City Editor
Top executives at one of Britain's best-performing industrial groups are close to landing a share bonanza worth more than £200m, placing it among the largest one-off payouts ever made by a FTSE-100 company.
Sky News has learnt that the management team of Melrose Industries, which specialises in turning around underperforming engineering businesses, could receive in the region of £206m from an incentive scheme due to pay out in the next few months.
The details, which will be disclosed in Melrose's annual report next month, relate to a five-year bonus scheme approved by the company's shareholders in 2012.
Melrose, which owns manufacturing names such as Brush and Nortek, has generated billions of pounds of profit for its investors since it was set up more than a decade ago.
Sources said that an accounting note in Melrose's recent annual results, which disclosed a £22.8m charge for employers' National Insurance contributions, hinted at the scale of the potential share scheme payout.
One insider said the current 40-day average share price of about 210p would equate to a total award to Melrose's top team of £206m, although the final figure had yet to be determined this weekend.
A number of top shareholders in Melrose contacted by Sky News said they were comfortable with the size of the payout.
"We signed up to this knowing the scale of the upside for management," said one.
"They only make money if we do."
Melrose's top team is led by chairman Christopher Miller, deputy chairman David Roper, Simon Peckham, the chief executive, and chief financial officer Geoff Martin.
Between them, the four men are expected to receive roughly 75% of the aggregate payout, which is calculated by handing participants in the bonus plan 7.5% of the total shareholder gain.
A further 20 senior managers would share the remainder of the multimillion pound rewards under the scheme.
Melrose has sold companies including metering business Elster and Bridon, an industrial cable-maker, during the last few years.
The share bonanza will come amid growing scrutiny of boardroom pay at the UK's top companies, with Theresa May vowing last year to crack down on corporate excess.
Ministers are starting to formulate responses to a green paper published in the autumn, while a report on corporate governance and executive pay is expected to be published by the Department for Business, Energy and Industrial Strategy shortly.
While some companies, such as Thomas Cook and Imperial Brands, have faced revolts over much smaller management incentives than those at Melrose, the industrial turnaround group has generally enjoyed strong support from its shareholders.
Since its inception, Melrose has returned roughly £3.2bn to investors by selling a string of companies for big profits.
A person close to Melrose pointed out that its executives' pay was strongly aligned to shareholder returns and that its chief executive's basic salary was £450,000 - well below the average for a company with a market value of more than £4bn.
This year's share scheme will be the second to crystallise at Melrose since the company was established.
In 2012, executives shared a £126m windfall under the previous incentive plan.
The company's management team have never sold shares other than to settle tax liabilities, and will be obliged to hold onto half of the latest share awards for at least two years.
Melrose, which declined to comment, will seek shareholder approval for a further incentive scheme at its annual meeting later this year.|
|I agree, Meanwhile. I dived in today after being absent since the rights issue.
They also appear to be ambitious to do another deal at the same time.|
|I had intended to hold off my contributions until 12th May but have changed my mind after seeing forecasts from Deutsche Bank & Liberum Capital, 220p and 200p. These fellows are Clueless, they should join the BBC, the Guardian or possibly the 'movement to keep the UK in the EU'.
Based on underlying 4 months worth of profit at Nortek (and bear in mind that for this 4 month period, MRO had run Nortek for an average time of only 8 weeks), the shares are worth around 300p, for the business as it currently exists. Add some expected improvements in margin at Nortek, a bit more of sales and the prospect of a further acquisition and I think 400p is not a crazy target.|
|Very promising. Around 10% up. My 27th Feb. prediction was just slightly off.
If this goes on much longer, I will need to resist the temptation fallen into by that great british institution the British Brainwashing Corporation, otherwise known as the BBC, to believe that I'm making the news rather than reporting it.
My next prediction is scheduled for 12th May 2017.|
|2 March 2017
MELROSE INDUSTRIES PLC
FOR THE YEAR ENDED 31 DECEMBER 2016
Melrose Industries PLC today announces its audited results, which are reported under IFRS, for the year ended 31 December 2016.
§ Melrose's 2016 results have exceeded market expectations:
‒ Brush, in its eighth year of Melrose ownership, is still experiencing adverse trading headwinds and management continues to take appropriate action
‒ Nortek, acquired on 31 August 2016 for an enterprise value of £2.2 billion, is responding well to Melrose ownership and has materially outperformed, albeit in a short four month period
§ In comparison to the same four month period last year, Nortek has achieved:
‒ An increase to underlying1 operating profit of 35%
‒ Underlying1 operating margin of 13.4%, up 4.1 percentage points
‒ Underlying1 profit conversion to cash of 134%
§ Since acquisition, Melrose has significantly reduced the debt levels in Nortek and also increased capital investment in the businesses to enhance long-term value
§ Future operating margin improvement possibilities for Nortek are better than originally thought
§ The Melrose Group achieved an underlying1 profit before tax of £96.4 million (2015: £2.4 million), despite declaring a statutory loss before tax of £69.3 million (2015: £30.7 million) after non-trading and acquisition costs
§ In spite of adverse foreign exchange translation effects on US$ debt, Melrose Group net debt has been reduced since acquisition to £541.5 million, reflecting very strong cash generation
§ A final dividend of 1.9 pence per share is proposed (2015: 0.5 pence2)
§ The Melrose Board has started the process of looking for the next acquisition
1 Considered by the Board to be the best measure of performance. A reconciliation of the statutory result
to underlying performance is set out in the Finance Director's Review
2 Adjusted by a bonus factor of 18.8% related to the Rights Issue completed in August 2016
Christopher Miller, Chairman of Melrose Industries PLC, today said:
"This has been a tremendous year for Melrose and we are delighted with the performance of Nortek which is exceeding expectations. All aspects of the business are being improved and its prospects are better than originally thought. As a result we have started looking for the next acquisition that will materially enhance shareholder value."
An analysts' meeting will be held today at 11.00 am at Investec, 2 Gresham Street, London EC2V 7QP.
Charlotte McMullen/Sophie Arnold +44 (0) 20 3514 0897
I am pleased to report on our 14th set of annual results since flotation in 2003. Since the date of the first acquisition in 2005, Melrose has created net shareholder value of £4.8 billion and achieved an average annual return for a shareholder of 26% (as at 1 March 2017).
CALENDAR YEAR 2016
2016 has been another successful year. In February 2016, £2.4 billion was returned to shareholders following the sale of Elster in December 2015. In August, Nortek was acquired for £2.2 billion, financed from the net proceeds of a successful rights issue raising £1.6 billion, with the balance funded through debt of £0.6 billion.
The presentation of this year's results has been dominated by the Nortek acquisition, which, when combined with Brush, has more than tripled the revenue of the Melrose Group this year.
Melrose Group revenue for the year was £889.3 million (2015: £261.1 million) and, despite declaring a statutory loss before tax of £69.3 million (2015: £30.7 million), the underlying profit before tax was £96.4 million (2015: £2.4 million).
At Nortek, the Security & Smart Technology and Ergonomics divisions performed particularly well, driving outperformance, but all businesses are responding well to the improvement measures we have implemented to date. Brush continues to face challenging end-market conditions but we remain positive about its long-term prospects. Further details of these results are contained in the Chief Executive and Finance Director's reviews.
As ever, I would like to thank all our employees for their efforts in helping to produce this outstanding performance.
The Board proposes to pay a final dividend of 1.9 pence per share (2015: 0.5 pence2), making a total of 2.2 pence for the year (2015: 1.0 pence2), in line with its progressive annual dividend policy. This will be paid on 16 May 2017 to those shareholders on the register at 7 April 2017, subject to approval at the Annual General Meeting (AGM) on 11 May 2017.|
|Way undervalued... 300p+ imv
Following but not in here.|
|Excellent results.Nortek exceeding expectations.Brush must irritate a perfectionist management but that appears to be the only caveat.Note the company on the look out for next acquisition.Extraordinary energy.|
|Melrose's 2016 results have exceeded market expectations:|
|Indeed,but have Melrose established a premium listing and thus established eligibility for the index or are they still in the standard category re RNS of 31 Aug last.|
|Steeplejack. There are currently four companies in the FTSE with a smaller capitalisation than MRO. It doesn't necessarily mean that any of them will be replaced by MRO at the next shake up though. It would be nice if one was.
|Melrose will be going back into the index in due course I understand ...possibly the FTSE 100.Trackers will be buying ahead of inclusion.Am I right ?I've got in a muddle about this in the past.|
|A large increase in the holding of Avila last week though..|
|I am a bit concerned about tomorrow's results. The share price has a massive amount of improvement built into it. I wonder if we might have another large acquisition - please?|
|MRO has a fairly stable share price today,running up to Thusday's results, after a little turbulence lately. Maybe nobody outside the company, in the market, knows much.
If such is the case, I therefore think it possible we could see a big change on Thursday, 20% or more, up or down.
My own guess is 10% up.|
|Meanwhile, I most certainly will drink to that. MRO seem to be a sensible company quietly getting on with the business of making money for it's shareholders.|
|I may face criticism for making such a comment, but I will defy this suggestion.
Panmure Gordon believe MRO can treble the value of the Nortek takeover price, and this was, I recall, 40% over Nortek's market price pre-bid. Even Numis, who have long been neutral on MRO, are now saying only rather less than Panmure. What I find surprising therefore, is that such potential (if present) was not seen by other potential bidders at the time of the takeover. You will recall that no rival bid came in for Nortek.
Either MRO have vision beyond all others or such optimism as shown by the broker targets, and by the share price itself, are misplaced.
As a shareholder, I hope the former is true. MRO's record over 10 years suggests this also. Next week, we should know. Maybe Panmure will see that the value can not just be trebled, but septupled or even octupled.|
|Totally agree. The less said the better - though looking forward to the Preliminary Results on 2 March when there may be more to say (applaud?). Meanwhile, the share price keeps climbing gently.|
|The amount of chat on these bbs seems inversely proportional to the quality of the company. Lol|