Melrose 2017 Final Results
Nortek underlying results are better on all measures; revenue growth is 2% with increased momentum in the second half of the year when sales were up 4%2, the operating margin is 15.2%, operating profit is up 52% on last year and up 67% on the last full year prior to acquisition
The underlying results are a key measure of performance and are shown alongside the statutory results. As 2017 was the first full year of Nortek ownership by Melrose, significant restructuring costs were incurred and, following the structural decline of the core gas turbine market for Brush, its balance sheet value has been reduced to £300 million. These two items are included in the adjustments made between statutory and underlying1 results
Consultations with employees have commenced to implement a restructuring plan which, when complete, will position Brush well for the future
Cash generation is strong, with a record performance from Nortek. Net debt was £572 million representing leverage of 1.9x underlying EBITDA, significantly lower than at the time of the Nortek acquisition only sixteen months previously
In line with the Melrose strategy, advisors have been appointed to confirm the appropriate future process and timetable for the disposal of Ergotron, Inc
The proposed final dividend of 2.8 pence (2016: 1.9 pence) per share together with the interim dividend of 1.4 pence (2016: 0.3 pence) results in a 91% increase in the full year dividend of 4.2 pence per share (2016: 2.2 pence)
