Melrose full-year profit leaps

ENGINEERING buyout specialist Melrose this morning reported a 38 per cent jump in profits, sending its shares up in early trading.

The FTSE firm posted full-year pre-tax profits of £214.3m, up from £154.7m in 2011, on revenues of £1.5bn.

Melrose, which follows a private equity-type model of investing in companies to improve their performance, warned at the end of last year of a slowdown in its energy business.

“Although this continues to be the case we are confident of the outlook and therefore we expect further progress in 2013,” chairman Christopher Miller said this morning.

The turnaround group added that its acquisition of metering firm Elster, which it completed last year for £1.8bn, was performing well.