Melrose Industries Share Discussion Threads

[tenapen] 05/6/2022 21:41

I agree bmel, from small acorn's do large Oak trees grow.



.....is pleased to announce that it has received a further order from GKN Hydrogen ("GKN") for an additional eight PM Module S8 fuel cell systems designed for the autonomous provision of energy and heat to be delivered in Q1 2022. GKN Hydrogen is part of GKN, the Aerospace, Automotive and Powder Metallurgy international business controlled by Melrose Industries plc.

Including previous orders, GKN has now ordered 25 PM Module S8 fuel cell systems in total

[bmel] 05/6/2022 17:52

Tenapen

The hydrogen business is going to be really interesting for MRO.

It is unlike anything else we have owned previously.

Hydrogen is a (rapidly) emerging part of the energy sector ie ‘new tech’ that is nowhere near the standard MRO buy, improve, sell model.

I am curious to see how the MRO board react to this. I suspect this will be in our portfolio for some time and I can imagine other acquisitions that could be bolt on to scale up the hydrogen business before ultimate sale to …….say one of the big oil majors or energy companies.

The Ukraine war has completely tossed the green energy production industry into the air and turbo charged its rate of development. Massive stakes to play for in hydrogen.

[tenapen] 05/6/2022 09:54

I will be interested in Melrose's hope's and expectations for GKN hydrogen. We know they have made sales with one rig being shipped to Australia. They have also attended at least one trade fare, so hopefully they will bag many more orders going forward.


"A first HY2MINI system was picked up these days in its green GKN Hydrogen container for transport to Down Under. Proton Motor wishes a good journey to its destination in New South Wales, Australia. There, in the rural area, hydrogen storage is a much safer and cleaner option over the common diesel generators, which have often already caused bushfires or have been damaged in natural disasters."

[gargoyle2] 04/6/2022 20:33

hxxps://www.thetimes.co.uk/article/melrose-sale-leaves-focus-on-gkn-businesses-705kf55lc

[bmel] 04/6/2022 18:29

Ergotron business sold for £512m. The last part of Nortek.Substantial profit on the whole deal.Now focus is all on former GKN businessAerospaceAutomotivePowder metallurgy HydrogenAll of them steadily slipping back towards growth mode again......albeit after an unwelcome delay.

[chickbait] 30/5/2022 16:10

NoQuestionMarks

Posted in: MRO

Posts: 292

Price: 134.75

No Opinion

RE: average target 199.2p30 May 2022 10:14
Up over 10% in a month.
5 brokers say buy
3 say hold
0 recommend a sell
When the auto/airline recovery finally gains traction we are heading north.

Careful listening to the rampers!!!

[chickbait] 30/5/2022 16:04

Careful you don't get spiked!!!

[medieval blacksmith] 30/5/2022 15:26

Plus all the planes in Russia that have become stranded aren't available.

[rettah] 30/5/2022 08:00

Good to see this moving up. Directors were happy to buy from 160 down.

This is from City AM: "ORDERS for commercial aircraft were their highest in four years in the month of April, new data released today has revealed. More than 130 airplanes were ordered in April, hitting a high not seen since well before the pandemic. There is now a backlog of some 13,000 aircraft that have been ordered but are yet to be delivered, a sign of the sector’s rebound and confidence as travelers release pent-up demand for breaks built up during two disrupted years of international travel."

[essentialinvestor] 09/5/2022 06:33

Agree a little vague and no comment on whether MRO cash positive in the period.

[1justine] 07/5/2022 10:37

Yet another puffed up MRO statement on vague comparisons with their own expectations and positioning for the future. Just do a deal-- that's how we make money out of this lot!

[roguetraderuk] 27/4/2022 17:03

MB, my base isnt gbp. i have plenty of gbp bought after brexit. i did sell a fair bit recently as my base is pln and those war premium levels near 6 were just to good historically. but it leaves a prob of where to put them. but thats a diff prob. as for usd i got rid of most when i cashed out of my minor us positions at the start of my tax year (jan 1st). so if war premium comes out of usd vs pln, i will be looking at at least 10% on the currency in terms of downside. and it could happen in the coming weeks. so in that respect im limited to my us possies and for now keeping the few usd i have in case of a solid washout.

[medieval blacksmith] 27/4/2022 16:49

Just when you thought it couldn't get any worse, eh?

Locusts next.

Opportunity.

[essentialinvestor] 27/4/2022 16:43

One development is for sure, macro outlook is deteriorating pretty rapidly
and supply issues, particularly in automotive, look to be worsening.

[medieval blacksmith] 27/4/2022 16:37

Well WRT Boeing it could be a 'dead cat' bounce but I have already cleared the poor trading spread and currency costs that HL throw at me and nearly 1% up. Probably down another 10% tomorrow. LOL

Nice sunny day so have a relaxing evening folks.

[medieval blacksmith] 27/4/2022 16:32

I wouldn't worry too much about the high $ if I were you. At least I wouldn't let it stop you from buying US stock. Who is to say Cable is going to get any better from 'our' perspective anytime soon. World wide companies like Boeing - from suppliers, customers and world spread business - tend to iron out currency differences anyway. If it was an income stock I would probably think differently but currency spread on a 3 year investment (say) especially $/£ wouldn't concern me when judged against likely future return.

[essentialinvestor] 27/4/2022 16:21

Added, but just a very small amount.

[roguetraderuk] 27/4/2022 16:18

boeing actually has about 40% plus defence revs. the prob is that its mostly all fixed contracts and they have been blaming this area for their probs ironically. but going forward this area will help them. the low for defence spending is prob now. as for boeing shares, as EI says the management just cant seem to get out of their own way. the shares today fill the vaccine gap. there is one more down at 122 but you could probably nibble today. i possibly would but for the high dollar vs my base currency.

[medieval blacksmith] 27/4/2022 16:12

Fair value for Boeing now - and with that order backlog - starts to look interesting.

Bought a tranche.

[essentialinvestor] 27/4/2022 15:04

Boeing taking a pounding. Arguably not a well managed business, one
self induced misstep after another.

[roguetraderuk] 27/4/2022 12:26

boeing results shortly, will have a read thru as have GD and GE yesterday.

[essentialinvestor] 26/4/2022 15:39

net, unless the world is ending as we know it you should do very nicely on MRO,
if you bought somewhere near current levels.

However, as mentioned to you last week Melrose is given to big price moves on
sentiment shifts, in either direction. 10% moves within days pretty often routine here. For that reason, it's not for everyone.

[netcurtains] 26/4/2022 15:32

§ The results are ahead of expectations with better cash generation and a bigger reduction in net debt1 and leverage1

§ At constant currency, despite global supply challenges, sales were up 2% year on year and, notably, Group adjusted1 operating profit tripled to £375 million, showing the substantial benefit of restructuring actions increasingly coming through

§ The Group statutory operating loss was £451 million; of the £826 million adjusting items, only £200 million were cash items, almost all relating to restructuring projects

§ All businesses returned to growth, with further benefits coming from restructuring actions. The Melrose businesses are actively working to mitigate the current inflationary pressures through all necessary means and remain fully committed to achieving their previously stated operating margin targets

§ Melrose generated free cash flow1 of £125 million in the year, prior to disposal proceeds, with net debt1 reduced to £0.95 billion and leverage1 to 1.3x adjusted1 EBITDA. All businesses continued to be cash positive, therefore fully funding all their improvement and restructuring costs, with their cash generation qualities transformed since acquisition

§ Working capital in the GKN businesses has reduced to 3% of sales from 5% at the GKN acquisition, with further opportunities existing to improve Aerospace inventory levels

§ Ahead of plan, the opening net debt1 of £3.4 billion at the GKN acquisition has been fully repaid in less than four years, save cash returned to shareholders over the period, helping to protect shareholder value and de-risking the GKN transformation during some of the most challenging trading conditions

§ The GKN UK pension schemes are now in surplus helped by £1 in every £3 of free cash flow1 since acquisition being paid into the Group's pension schemes, thereby freeing up more free cash flow1 in the future

[netcurtains] 26/4/2022 15:28

Last director buys were at £1.198