The Melrose Board declared an interim dividend of 1.7 pence per share (2018: 1.55 pence), which is a 10% increase on last year and will be paid on 11 October 2019 to shareholders on the register at the close of business on 13 September 2019. The Board continues to align its dividend policy with the earnings of the Group and will use this basis to set future dividends, including for the final dividend for this year.
Other financial highlights include:
Melrose is trading in line with expectations for 2019, with the three main divisions of GKN on track to achieve previously announced targets
Adjusted operating profit was £539 million, which excluding the uplift from loss-making contracts was £494 million. The statutory operating loss was £11 million; of the £550 million adjusting items, only £79 million are cash
Net debt leverage at 2.3x EBITDA is better than expectations due to stronger cash generation
Adjusted free cash inflow from continuing operations of £256 million
A new target to improve GKN's working capital efficiency, releasing additional future free cash of £400 million within their ownership period