GKN-owner Melrose said profits were set to be 7% higher than previously expected
The owner of UK aerospace firm GKN said it was on course to more than double its annual profits after demand and prices surged.
Melrose said profits were set to be 7 per cent higher than expected. Chief executive Simon Peckham said he was leaving it ‘well positioned for the future’ as he prepares to step down in March.
The firm is best known for its battle in 2018 to take control of GKN, an industrial stalwart dating back to the 18th century which made cannonballs in the Napoleonic wars.
After the £8billion hostile takeover was completed, Melrose restructured the business, axing jobs and closing a plant in Birmingham.
It then spun off GKN’s automotive and other divisions under the name Dowlais, but kept the GKN aerospace business.
The firm, which makes parts for civil and fighter jets, with clients including Airbus and Boeing, has been boosted by the revival in air travel and military spending.
It had already upgraded its earnings guidance only two months ago.
Now it expects adjusted operating profits of between £400million and £410million, compared with the £186million reported by its aerospace business in 2022 before the GKN break-up completed.
Revenues are expected to come in at between £3.3billion and £3.4billion.
