Melrose Industries has announced a 7% jump in revenue for the period covering the four months to 31 October, as the aerospace manufacturing group said it remains on course to meet its full-year targets.

This performance was boosted by 17% revenue growth in the group’s engines division.

Melrose said its engines performance continues to be driven by its aftermarket business, which is up 32% on last year, with a particularly strong contribution from defence.

As a result, the group’s full-year expectations are unchanged with adjusted operating profit expected to be in the £550m to £570m range. Melrose also said that its net debt4 is also anticipated to end the year in line with current expectations.

“It’s encouraging that we remain on track to deliver on our full year expectations, despite the industry-wide supply chain challenges,” commented Melrose CEO, Peter Dilnot. “This reflects the strength of our businesses and the balanced position we have with our aftermarket offsetting original equipment headwinds.

“As we move into 2025, we enter a period of significant and sustained growth in our cash flow for many years ahead. I am confident that Melrose's established capabilities, technology leadership, and unique position on the world's leading aircraft and engines will create substantial value in the future.”

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, noted that “production troubles” at Airbus and “quality issues” at Boeing had dented timelines for Melrose.

“There’s not a great deal Melrose can do about this,” he added. “Supply chain issues have been a challenge for the whole industry and the problem’s likely to persist for some time.

“Melrose is pulling other levers to streamline operations and offset this impact though. The ongoing restructuring programme is nearly complete and should result in a significantly lower drag on its cash resources in the new year. Looking further ahead, there are some tailwinds blowing in its favour. Contract repricing and new commercial agreements mean there’s room for growth to really step up in the near-to-medium term.”

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