Melrose increases 2012 final dividend by 4%

DividendMax Ltd.

Melrose increases 2012 final dividend by 4%

Highlights

Acquisition of Elster on 23 August 2012 for an enterprise value of £1.8 billion, improvement plan is one year ahead of schedule

Headline results

- Revenue of £1,551.4 million (2011: £1,080.4 million)

- Profit before tax of £214.3 million (2011: £154.7 million)

- Melrose businesses (excluding Elster) increased revenue by 7% and operating profit by 9% at constant currency

- Elster operating margin increased by 1.9 percentage points to 14.1%, operating profit was up 11% with revenue 2% lower, at constant currency

- Headline diluted earnings per share of 16.1p (2011: 15.8p)

Results after exceptional items and intangible asset amortisation

- Profit after tax of £42.9 million (2011: £110.1 million)

- Diluted earnings per share of 4.3p (2011:12.9p)

Net debt of £997.7 million. Net debt equal to 2.6x EBITDA

Final dividend increased by 4% to 5.0p per share (2011: 4.8p)

Full year dividend of 7.6p per share (2011: 7.4p)

Christopher Miller, Chairman of Melrose Industries PLC, today said:

"Since inception less than 10 years ago Melrose has created over £2 billion of shareholder value. We are very pleased with Elster and are already one year ahead of our improvement plan, increasing margins faster than expected. Existing Melrose businesses have performed well and Elster is proving to be another great opportunity to create more value for Melrose shareholders."

Companies mentioned