Melrose holds guidance as aftermarket work boosts revenues

(Sharecast News) - UK aerospace company Melrose held full-year guidance after a rise in revenues driven by aftermarket demand in its engines division, particularly in defence.

Revenue rose 7% in the four months to October 31, with aftermarket up 32% year on year although original equipment volume growth remained constrained by industry-wide supply chain issues, Melrose said in a trading statement.

The company still expects adjusted operating profit £550m - £570m, adding that it was on track to hit a £700m profit target in 2025.

Reporting by Frank Prenesti for Sharecast.com