Strong sales growth at Melrose
Strong sales outside Europe have helped engineering turnaround investor Melrose boost revenue by 12 per cent over the past quarter.
The Warwickshire-based company's order book is also 14 per cent higher than last year, it revealed in an interim management statement this morning (16 November).
Melrose said that "slower" growth in Europe was offset by continued high sales in North America and the rest of the world.
During the summer, Melrose was embroiled in a bidding war for Dublin-based equipment manufacturer Charter International. After its £1.4bn offer was rejected, Melrose bowed out of the race. US-based Colfax Corporation subsequently submitted a higher bid for the company.
In the Stock Exchange statement released today, Melrose said it withdrew on the basis that "we maintain a keen discipline with regard to the price we are prepared to pay for acquisitions. We believe that the current economic environment is likely to present interesting opportunities which meet our strict acquisition criteria".
The sale of Dynacast for £377m was announced on 20 July. Melsrose said the disposal was followed by a return of capital to shareholders of £373m, equivalent to 75 pence per ordinary share.
The company said: "As we enter the final months of 2011, the visibility afforded by our order books, supported by continuing efficiency gains and a robust programme of capital investment, gives us confidence of a good outcome for the year and we look forward to a further improvement in the group's performance in 2012."
