Melrose Industries Share Discussion Threads

[brexitplus] 07/3/2019 14:08

I take Porky’s point about adjusted figures, but having looked at the non-recurring items, particularly acquisition and restructuring costs the accounting makes sense.

in The 2019 accounts these items will have worked through.

Over the history of Melrose the key figure has been the improvement in operating margin, which they have been singularly impressive in increasing. In some of the companies they have bought and sold sales have not improved by much but operating margin has which led to a big uplift in value and sale price.

So for me the adjusted figures are more meaningful and can be compared Year on year.

[minerve 2] 07/3/2019 12:01

Yertiz

My interest here is entertainment. I can get that elsewhere if you want to close the thread. ;)

You should know that anything outside EBITDA are real costs and should be considered, especially in an asset intensive business. That report is just EBITDAesque and one should be looking at the vast chasm between reported and adjusted.

As long as you fully understand the difference and accept it that is fine. I doubt Melrose fanboys really care. As long as the fanboy sentiment exists nobody is proved wrong, right?

[brexitplus] 07/3/2019 11:52

Yertiz, agreed. Last year Melrose were reported as wanting to sell Nortek and GKN this year.

[minerve 2] 07/3/2019 11:51

Yertiz

Your comment is also meaningless without referencing facts and figures.

We say bad, you say "good".

Well, I don't actually say anything. I would probably say "be careful".

But I don't invest in this dog so it doesn't matter to me.

[yertiz] 07/3/2019 11:47

Usual vacuous and meaningless comments from the naysayers. Good set of results, bodes very well for the future - Nortek now looking like a company ready to be moved on at a sensible price.

[brexitplus] 07/3/2019 11:21

Not much new in the annuals following the Nov Trading update.

Obviously, good progress being made at GKN already, but report only covers a few months. Aero and Powder Metallurgy looking good. Auto will increasingly move to electric which will need plenty of investment.

I particularly like these 2 paragraphs which indicate the way ahead in Aero and Auto

“Since entering the Melrose Group, the GKN Powder Metallurgy business has continued to expand its partnerships with technology leaders of additive manufacturing equipment. As a sought-after partner with unique production capabilities, GKN Powder Metallurgy has recently entered into a new partnership with Hewlett Packard and Volkswagen to produce additive manufacturing parts through binder jetting technology, and a strategic partnership with EOS, the world's leading equipment supplier in the field of industrial 3D printing of metals and polymers.

These partnerships are dedicated to the design of a new, high-productivity process for laser metal 3D printing using GKN Powder Metallurgy proprietary additive manufacturing steel powder, which over time will reduce production time by up to 70% and overall production cost by up to 50%. As customisation trends drive customer demand for smaller lot sizes, GKN Powder Metallurgy’s additive manufacturing expertise puts it ahead of its peers to benefit from the significant growth potential. 3D technology will also shorten time to market substantially as no tools are required.”

Directors still in line for HUGE BONUSES. Good - it concentrates the mind. I dare say it will be discussed at the presentation today.

Next trading update will be more informative.

Peel Hunt and Deutche Bank Both reiterating BUY.

I’m happy. And pleased with the increased dividend.

[ryelodge] 07/3/2019 10:34

Not enough Flip; signs of one or two Flops, use of fancy acquisition accounting, offset by a boost to dividend. Is MRO giving a strategic signal to Divi Funds?

[minerve 2] 07/3/2019 10:04

At least we agree on something Poikka.

Need a serious spanner on those adjustments.

[poikka] 07/3/2019 10:02

Results - top marks for financial wizardry, lol.

Glad I'm not invested.

[minerve 2] 07/3/2019 09:14

brexit

Softest penalty I have seen given this season.

Best performance this week goes to Ajax. Probably the best European performance since some of LFC's last season.

[meanwhile] 07/3/2019 09:00

"with a proposed final dividend of 3.05 pence per share which is 9% up on last year".

Isn't this increase a bit reckless? Don't they realise that 3.05p per share across 5 Billion shares is almost as much in total as the 2018 director bonuses?

[brexitplus] 07/3/2019 08:13

“No way was that a penalty.”

It was. Look at the final score.

According to a Premiership ref using the current rules it WAS a penalty. Harsh perhaps but correct decision. Perhaps the rules need to change.

[brexitplus] 07/3/2019 08:00

Good results. Good presentation on the website.

Wait for the naysayers!!!

[bigalan3] 07/3/2019 07:35

Good results - they are very impressive at what they do for so little rewards!

[sogoesit] 07/3/2019 07:25

Impressive underlying operating margin gain at Nortek, from 8.7% to 14.7%!
All looking good despite “slowdown̶1; in automotive.
Good luck all!
Keep up the banter!

[miti 1000] 07/3/2019 06:51

Degrees from polytechnics are laughable. Were you too thick to go to a proper university , Minerve ?

[gettingrichslow] 06/3/2019 23:30

Thanks Porky, love GRS ❤️

[minerve 2] 06/3/2019 23:19

getting

You say degrees from polytechnics don't count, according to who?

According to getting criteria. You are a funny little man.

[gettingrichslow] 06/3/2019 23:12

You changed that quick Porky! Still waiting to see your list of qualifications you promised (degrees from polytechnics don't count).

[minerve 2] 06/3/2019 23:08

They offer home credit.

[gettingrichslow] 06/3/2019 23:05

Who are PFG?

[minerve 2] 06/3/2019 22:28

Buffon error too. Only Manure get this luck and the BBC always like to appease the fan boys.

[minerve 2] 06/3/2019 22:27

PSG not the team they were 2/3 years' ago and without Neymar.

No way was that a penalty.

Just look at the game stats.

Lucky Man U.