Melrose Industries Share Discussion Threads

[gettingrichslow] 08/3/2024 22:13

Louis, don’t agree with your characterisation of what’s happened with GKN - GKN was steadily on the decline and the trajectory it was on would have eventually led to bad outcomes for its employees and the areas in which the sites are based. MRO have turned that around, and in the long run that will result in better outcomes for the ex-GKN employees as well as shareholders on both sides. It’s a dog eat dog world and only the fittest survive. The people you’re concerned about are better off now than they would’ve been.

[louis brandeis] 08/3/2024 11:05

If you think about it the whole episode has been more about wealth transfer than wealth creation.

[louis brandeis] 08/3/2024 09:59

gettingrichslow

There are more stakeholders in GKN than just shareholders you know. Those promises were most likely to protect sites and jobs. I accept that the company is owned by the shareholders but without employees and assets (manufacturing sites) you don't have a company. Experience, skills and human IP disappear when you get rid of sites and people. Boeing is a good example of what happens to engineering companies when you let accountants and financiers totally run the show. When will owners and bean counters understand it isn't all about continual improvement in ROCE and operating margin.

Those people who feared for the future of GKN were right then and are just as right now.

[gettingrichslow] 08/3/2024 09:48

Amazing how Melrose remains so below the radar given its track record of delivery. Remember during the 2018 GKN takeover when so many observers feared for the future of the company and insisted on various 5 year promises etc? They’ve delivered everything they said they would, early. The change in strategy doesn’t bother me in the slightest as long as they keep on delivering.

[peter27] 07/3/2024 14:20

All announced and discussed last year at the AGM.

[gargoyle2] 07/3/2024 14:02

If Dowlais's forecasts are anywhere near accurate (EPS of 14.7p last year, 16.7p this year. with a 4.2p dividend), it's pretty cheap at this level. (Probably for the DWL board though!)

[yertiz] 07/3/2024 13:34

Absolutely right....naughty step for me! I'll now devote an hour or so to examine the results.

[louis brandeis] 07/3/2024 12:00

You've obviously not even read the first few paragraphs of the results.

They have altered their MO:

"The previous Melrose business model of 'Buy, Improve, Sell', has been replaced by 'Design, Deliver, Improve'."

They are now remaining as an aerospace business with GKN Aerospace.

As far as general returns, again, it is in the results:

"During their tenure, the business has grown from a start-up in 2003, to a well-positioned FTSE100 enterprise, having delivered total returns of capital of over £8 billion to shareholders, and an average return of 2.5x shareholders' equity for the businesses sold under the previous business model. We wish them well for the future."

As far as Dowlais is concerned we will not know until the results on the 21st March.

[yertiz] 07/3/2024 10:51

Very long term holder here. Previous ethos of MRO was to 'buy, improve then sell' usually with a great profit and returns to shareholders. I've lost track of how much Melrose has made for me over 23 years, but it must run into many thousands of £££'s. Just now wondering if there has been a major shift in the co's modus operandi and are now content in holding on to the remains of GKN? Dowlais seem to have hit the buffers, not making much headway, sadly.

[rettah] 07/3/2024 10:06

This is a cash cow going forward with the service contracts.

[philanderer] 07/3/2024 10:05

JPMorgan raises Melrose Industries target to 650 (620) pence - 'overweight'

[steeplejack] 07/3/2024 07:09

Excellent ResultsPeter Dilnot, Chief Executive Officer of Melrose Industries PLC, today said:"Melrose Aerospace has delivered record results in 2023, ahead of upgraded guidance driven by strong operating margin progression in both divisions. The Group is well positioned to deliver continued growth and margin improvement supported by positive end markets and excellent operational momentum. We have upgraded guidance for 2024 and are confident about unlocking significant further potential of the business going forward."

[bmel] 09/2/2024 14:04

Nice to see 600p.

[philanderer] 19/1/2024 11:35

Barclays raises Melrose Industries target to 650 (575) pence - 'overweight'

[philanderer] 15/1/2024 11:15

RBC raises Melrose Industries target to 560 (540) pence - 'sector perform'

[alfieduncan] 08/1/2024 14:14

Cheers P. I had thought of reducing as felt the price might drift.
Glad I ummed and ahhed.
Onwards and hopefully upwards…

[rettah] 08/1/2024 14:12

Their current target is 620p.

[philanderer] 08/1/2024 14:08

alfie, no , that was all the info.

[alfieduncan] 08/1/2024 13:49

Many thanks. I was wondering why we were bucking the trend. Did they give a target price?

[philanderer] 08/1/2024 13:24

(Alliance News) -

Shaking off the aviation sector malaise, Melrose shares rose 3.3%, among the best FTSE 100 performers.

JPMorgan said the company "Melrose remains a key pick for us in 2024".

"[It is] an aerospace pure-play with a credible margin story, further upside to forecasts and a sizeable buy-back supporting the shares," JPMorgan analysts explained, adding the company to its positive catalyst watch grouping.

[steeplejack] 16/11/2023 10:03

Shows the benefit of investing in a fund that has sizeable holdings in overseas listed companies like Microsoft and Meta rather than UK equities.

[rettah] 16/11/2023 09:55

Fundsmith is about 15% annual growth compounded over 10 years. Decent. Shows the value of compound growth.

[steeplejack] 16/11/2023 09:45

Limited reaction to the update news then.Discounted i suppose.Good luck to the Chancellor trying to invigorate interest in UK equities via an increased ISA allowance.£10000 put into a FTSE100 ETF tracker with dividends reinvested ten years ago would now be worth £15800.£10000 put into S&P 500 ETF tracker would be worth £37500£10000 put into a global tracker ETF would be worth £29000Fundsmith Global Equity has outperformed all three of the above.Ten thousand invested would now be worth slightly less than £40000.