Melrose Industries Share Discussion Threads

[brexitplus] 25/4/2018 07:49

Whitbread following the Melrose model.

Isn’t it amazing, with all the criticsm of Melrose that large companies seem to be following their model. Matthew Lynn in the Telegraph, this morning overtaken by events, has an interesting article in the Telegraph which begins

“Blue-chips are starting to realise smaller may be better

Whitbread is under pressure to split apart its Costa Coffee and Premier Inn units. After Sir Martin Sorrell’s departure, WPP may break itself up. Prudential has already announced plans to divide itself in two, and Unilever has been told by some of its shareholders to do the same thing. All of a sudden, the FTSE 100 is dominated by companies deciding to demerge.

A coincidence? Perhaps. Each company has its own unique reasons for breaking itself apart. But it may well be the start of a far larger trend.”

Unilever is particularly interesting

“Alongside the decision on its headquarters, the company said it would reorganize into three divisions -- beauty and personal care, home care, and foods and refreshment. Each would have more autonomy, with greater responsibility for making strategic choices and managing financial performance.”

[brexitplus] 25/4/2018 07:23

Getting...

I thought it best to give up with MW. Life is too short.

I worked on the basis

1 He doesn’t have a single holding of £250k Melrose shares.
2 He isn’t very good at sums and obviously can’t make calculations.
3 He isn’t very bright and feels threatened by questions he can’t answer.
4 He is probably quite lonely. Who wouldn’t be living in Snowdonia!!

[gettingrichslow] 24/4/2018 22:15

Given the endless list of concerns and misgivings with the only company in the world he has chosen to invest in, can someone ask Meanwhile why on earth he is not selling up his £250k single holding in MRO then? I'm not allowed to ask Meanwhile any more questions because I'm a simpleton and don't understand his sophisticated 'calculations'.

[meanwhile] 24/4/2018 20:02

Debt around £200M higher than expected, margins more than 1% lower, sales more or less static, and customers haven't even come into the picture yet.
I can't wait for the figures to be ignored and for sentiment to take over.

Why isn't the market singing, in unison, that old Nat King Cole song "I Love You, for Sentimental Reasons"?

[gettingrichslow] 24/4/2018 18:37

Come on Meanwhile, it's got to be time for one of your 'calculations' soon? Pllleeeaaasssseee? Do that thing where you try and calculate an average of two numbers and then express it as a range by mistake.

[brexitplus] 24/4/2018 17:34

Semper

I agree, but I had to give them the chance.

[brexitplus] 24/4/2018 17:34

Sogoesit

No numbers. As you may have read here I only have A level maths and do not have a copy of The Idiots Guide to Simple Numbers so did not include any. I leave numbers up to MW, even though his numbers are imaginary and of no use whatsoever.

[semper vigilans] 24/4/2018 17:29

Yes Brexit, but they will tell you that the suppliers are capitalist profit makers who can survive on lower margins.
Would Mr.Harman and Ms.Reeves be prepared to give subsidies to keep bits of GKN afloat if things had gone wrong?
Unions always used to call for more investment in business without realising it would mean fewer jobs.

[sogoesit] 24/4/2018 17:24

I'm not sure those folks can even read let alone understand.
I hope you did not allude to any "numbers" in your email.

[brexitplus] 24/4/2018 17:16

Sogoesit

I’ve emailed Rachel Reeves and Jack Dromey asking if they will criticise GKN for screwing their suppliers.

I don’t expect a reply from either of them. They are only interested in sound bites.

[sogoesit] 24/4/2018 17:09

It looks like MRO management's "bargepole numbers" were as expected.
An utter disgrace. GKN management, the politicians and those supporting them.

Money will talk.
But, hopefully (that maligned word) we will be "forever in blue jeans"!

Anyway, past my bed time and I hope cupcake makers get their just desserts.

[sogoesit] 24/4/2018 16:58

Disgraceful.

[minerve] 24/4/2018 16:50

I will have a word with the event organisers to see if the award can be shared.

[meanwhile] 24/4/2018 16:43

I believe that regular readers here will agree that I have always acted in a fair, caring and considerate manner.
In this same vein, I simply cannot accept Brexitplus being given the award of 'Simpleton of ADVFN'. While his performance certainly makes him well qualified to receive the nomination, I believe that Gettingrichslow is a far better allround candidate.

[meanwhile] 24/4/2018 16:24

Keep going, lads. These exchanges are still good entertainment despite only seeing half of them these days.
I might be tempted to remove some filters if it warms up even more. See what you can do, Minerve.

[brexitplus] 24/4/2018 16:03

Deeds of Undertaking

As announced in Parliament today by the Secretary of State for Business, Energy and Industrial Strategy, Melrose confirms that it has entered into deeds of undertaking in respect of the GKN businesses, including in relation to national security.

As a British company, Melrose works in the national interest and remains wholly committed to protecting the UK's national security.

A copy of each of the respective Deeds of Covenant and Undertaking will be published on Melrose's corporate website: www.melroseplc.net

Christopher Miller, Chairman of Melrose, said today:

"We are pleased to sign these legally binding commitments. We have been in discussions for many weeks with Government as to how best to cement our long standing and clear undertakings and are grateful for their guidance. We look forward to continuing to work with the Government as we return GKN to be a manufacturing and engineering powerhouse."

[brexitplus] 24/4/2018 16:01

Only 210. I’d prefer 200p as I always automatically reinvest all dividends, since I have no need for the cash, and dividends are due on 21st May.

And at 200p will probably top-up.

[minerve] 24/4/2018 15:43

Oh dear, down again! 210p on the way?

My-oh-my. This is tedious.

[minerve] 24/4/2018 15:42

It is a classic case of kitchen sinking by Melrose. Make everything look really bad, as bad you can now, makes for their easier life in the future. If you are an experienced investor you should know this by now and stop buying everything at face value.

Obviously MEANWHILE was right; brexitplus would be in the running for Simpleton of ADVFN. Losos wouldn't be far behind!

[brexitplus] 24/4/2018 15:40

Bukko, and whoever else you post as

That is truly pathetic.

I’ll just sit here and eat my toasted teacakes with lashings of butter.

[bukko] 24/4/2018 15:35

OK .So Melrose will have less scope to screw suppliers than they thought. How's that? :-)

[brexitplus] 24/4/2018 14:50

Sorry Bukko, but the screwing was done in 2017 Q4, long before Melrose came on the scene!!!

“In addition, in the first quarter GKN unwound approximately £150 million of creditor stretch that was imposed on suppliers to lower the GKN Group debt at the 2017 year end.”

Try again.

[bukko] 24/4/2018 14:38

Perhaps the suppliers were happy to comply, fearing that Melrose would screw them a lot more!

[brexitplus] 24/4/2018 13:41

Always interesting to see what broker forecasts are saying, and why, not that I give them much credence when making investment decisions, but pretty much unchanged re Melrose.

Re directors, and founders, perhaps there should be a ceiling on the amount they can take out of a company - say £2 million total, plus a realistic salary of £150k max. Who needs more than that? Martin Sorrell would say different, of course. If they want more they can always set up another business and create more jobs. And of course the profits should be shared with the workers who make the businesses successful.

Also I see the Guardian, Independent and DM plus the unions and MPs are very quiet about GKN screwing their suppliers.

Now there’s a surprise!!! More cannonballs anyone?