2014 Annual Report

Total Page:16

File Type:pdf, Size:1020Kb

2014 Annual Report Buy Improve Sell Melrose Melrose Industries PLC Annual Report for the year ended 31 December 2014 Melrose Industries PLC A year of improvement Throughout 2014 we have focused on improving performance across the Group. Elster businesses continue to perform strongly, with profits increased by two-thirds in the two full years of ownership. Chairman’s statement More information p12 Transformational growth The management team has a successful track record in creating substantial value for shareholders, as shown below. This has been delivered over a number of deals since 2003. Improving shareholder value More information p02 £3.0bn Market capitalisation as at 4 March 2015 £170m Net shareholder investment as £13m at 4 March 2015 Listed on AIM 2003 2003 2015 2015 Cautionary statement The Strategic Report has been prepared solely to provide additional information to shareholders to assess the Company’s Download the latest Annual Report at strategies and the potential for those www.melroseplc.net/investors/reports strategies to succeed. The Strategic Report contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information. Melrose Industries PLC Annual Report 2014 01 Contents Strategic Report Improving shareholder value 02 Strategic Report Performance summary 04 Business at a glance 06 Market overview 08 Chairman’s statement 12 Chief Executive’s review 14 02 Our strategy 16 Key performance indicators 24 Performance Review Business review Performance Elster Gas 28 Elster Electricity 30 Review Elster Water 32 Energy 34 Risk management 36 Risks and uncertainties 38 Finance Director’s review 42 26 Corporate Social Responsibility 50 Governance Governance overview 60 Governance Board of Directors 62 Directors’ report 64 Corporate Governance report 68 Audit Committee report 72 Nomination Committee report 76 58 Directors’ remuneration report 78 Statement of Directors’ responsibilities 96 Financials Financial contents 97 Financials Independent auditor’s report to the members of Melrose Industries PLC 98 Consolidated Income Statement 102 Consolidated Statement of Comprehensive Income 103 97 Consolidated Statement of Cash Flows 104 Consolidated Balance Sheet 105 Consolidated Statement of Changes in Equity 106 Notes to the financial statements 107 Company Balance Sheet for Melrose Industries PLC 151 Notes to the Company Balance Sheet 152 Shareholder information Notice of Annual General Meeting 156 Shareholder Company and shareholder information 162 information Melrose Industries PLC 156 Annual Report 2014 Shareholder information Notice of Annual General Meeting This document is important and requires 13. To authorise the Audit Committee to determine the your immediate attention. If you are in any remuneration of the auditor of the Company. doubt as to the action you should take, 14. That, in accordance with section 551 of the Companies Act 2006 (the “Act”), the directors of the Company (the “Directors”) you should consult your stockbroker, bank be and are generally and unconditionally authorised to allot manager, solicitor, accountant, fund manager shares in the Company, or to grant rights to subscribe for or to convert any security into shares in the Company (“Rights”): or other independent financial adviser authorised under the Financial Services and (A) up to an aggregate nominal amount of £422,209; and (B) comprising equity securities (as defined in section 560 of Markets Act 2000 if you are resident in the the Act) up to an aggregate nominal amount of £844,418 United Kingdom or, if not, another (such amount to be reduced by the aggregate nominal amount of any allotments or grants made under paragraph appropriately authorised independent (A) of this resolution) in connection with an offer by way of financial adviser. rights issue: (i) to ordinary shareholders in proportion (as nearly as If you have sold or otherwise transferred all of your shares in may be practicable) to their existing holdings; and Melrose Industries PLC (the “Company”), you should send this document as soon as possible to the purchaser or transferee or (ii) to holders of other equity securities as required by to the stockbroker, bank or other agent through whom the sale or the rights of those securities or, subject to such rights, transfer was effected, for delivery to the purchaser or transferee. as the Directors otherwise consider necessary, and so that the Directors may impose any limits or Notice is given that the Annual General Meeting of the Company will restrictions and make any arrangements which they be held at Barber-Surgeons’ Hall, Monkwell Square, Wood Street, consider necessary or appropriate to deal with treasury London, EC2Y 5BL at 11.00 am on 14 May 2015 for the following shares, fractional entitlements, record dates, legal, purposes. Resolutions 1 to 14 (inclusive) will be proposed as ordinary regulatory or practical problems in, or under the laws resolutions and resolutions 15 to 17 (inclusive) as special resolutions. 156 of any territory or any other matter, Ordinary resolutions such authorities to expire at the conclusion of the Company’s 1. To receive the Company’s audited financial statements for next Annual General Meeting after this resolution is passed or, if the financial year ended 31 December 2014, together with earlier, at the close of business on 30 June 2016, but, in each the Directors’ report, strategic report and the auditor’s report case, so that the Company may make offers or agreements on those financial statements. before the authority expires which would or might require 2. To approve the Directors’ Remuneration Report (other than the shares to be allotted or Rights to be granted after the authority part containing the Directors’ remuneration policy) for the year expires, and so that the Directors may allot shares or grant ended 31 December 2014, as set out on pages 78 to 95 (save Rights in pursuance of any such offer or agreement for pages 88 to 95) of the Company’s 2014 Annual Report. notwithstanding that the authority conferred by this resolution has expired. 3. To declare a final dividend of 5.3p per Ordinary Share for the year ended 31 December 2014. 4. To re-elect Christopher Miller as a Director of the Company. 5. To re-elect David Roper as a Director of the Company. 6. To re-elect Simon Peckham as a Director of the Company. Notice of AGM 7. To re-elect Geoffrey Martin as a Director of the Company. 8. To re-elect Perry Crosthwaite as a Director of the Company. 9. To re-elect John Grant as a Director of the Company. 10. To re-elect Justin Dowley as a Director of the Company. 11. To re-elect Liz Hewitt as a Director of the Company. 12. To re-appoint Deloitte LLP as auditor of the Company to hold More information p156 office from the conclusion of this meeting until the conclusion of the next Annual General Meeting of the Company at which accounts are laid. Melrose Industries PLC 02 Annual Report 2014 Strategic Report Improving shareholder value Delivering transformational growth... Melrose has achieved an average annual return on equity investment of 23% since making our first investment in 2005 and an increase in operating margins of 5 to 7 percentage points across the businesses we owned. See the Melrose timeline of key events at www.melroseplc.net/about-us/history £2.8bn of shareholder value created x 4 shareholder value Melrose Industries PLC Annual Report 2014 03 Strategic Report Strategic Report We are very pleased with the track Total shareholder return versus public benchmarks record which we have achieved over Source: Datastream the first 11 years of our history and remain confident that Melrose is Since acquisition of McKechnie and Dynacast well-positioned to create superior shareholder value going forward. x 4.0 Outperformed FTSE 350 benchmark by 23% Average annual return Since acquisition of FKI on investment x 4.5 Outperformed £0.2bn FTSE 350 benchmark by Net shareholder investment at 4 March 2015 £3.0bn Market capitalisation at 4 March 2015 Track record for a shareholder For £1 invested in Melrose... Since the rst deal in 2005 <10 years £3.81 IRR 23% £1 Melrose Industries PLC 04 Annual Report 2014 Strategic Report Performance summary Financial(1) Revenue Headline(2) operating profit Headline(2) operating profit margin £1,377.5m £246.0m 17.9% 2013 £1,466.4m 2013 £240.0m 2013 16.4% 2014 £1,377.5m 2014 £246.0m 2014 17.9% Headline(2) profit before tax of £213 million, up 21% (11% at actual In common with many currency) and headline(2) proforma(3) earnings per share of 15.3p companies that trade internationally, the movement Elster profits up by two thirds (circa £80 million) in the two full in exchange rates in 2014 has years of ownership caused a headwind to profits of around 8%. For ease of Elster now delivering revenue and order intake growth, comparison, unless stated up +9% and +6% respectively in the second half of 2014 otherwise, the year-on-year All three Elster divisions achieved profit growth in 2014 variances in these financial (Gas +13%, Electricity +23% and Water +11%) highlights are stated using constant currency. Brush (revenue -3% and profit -7%) suffering from a tough OEM (Original Equipment Manufacturer) generator end market In November 2014 Bridon sold for £365 million, doubling shareholders’ original investment Return of Capital of £200 million (18.7p per share) to be paid on 16 March 2015 alongside a 13 for 14 share consolidation IFRS profit after tax(4) of £87 million (2013: £102 million) Net debt at 31 December 2014 of £501 million, equal to 1.8x EBITDA(5).
Recommended publications
  • Aviso De Derechos Para Emisoras Del SIC
    Aviso de Derechos para emisoras del SIC FECHA: 22/06/2021 BOLSA MEXICANA DE VALORES, S.A.B DE C.V, INFORMA: FOLIO DE REFERENCIA DEL EVENTO CORPORATIVO 145737 FOLIO DE REFERENCIA INDEVAL 308327C001 TIPO DE MENSAJE NEW COMPLETO / INCOMPLETO INCOMPLETE CONFIRMADO / NO CONFIRMADO UNCONFIRMED CLAVE DE COTIZACIÓN MROS RAZÓN SOCIAL MELROSE INDUSTRIES PLC SERIE N ISIN GB00BZ1G4322 MERCADO PRINCIPAL LONDON STOCK EXCHANGE TIPO DE EVENTO REVERSE STOCK SPLIT/CHANGE IN NOMINAL VALUE MANDATORIO / OPCIONAL / VOLUNTARIO Mandatory FECHA EFECTOS 31/08/2021 FECHA EXDATE 31/08/2021 FECHA REGISTRO 27/08/2021 OPCIÓN 1 TIPO Security DEFAULT true TRANSACCIÓN Securities Movement CREDIT / DEBIT Debit FECHA DE PAGO 31/08/2021 Bolsa Mexicana de Valores S.A.B. de C.V. 1 Aviso de Derechos para emisoras del SIC FECHA: 22/06/2021 VALORES A RECIBIR GB00BZ1G4322 TRANSACCIÓN Securities Movement CREDIT / DEBIT Credit FECHA DE PAGO 31/08/2021 NewToOld RATIO 9 / 10 VALORES A RECIBIR GB00BNR5MZ78 DISPOSICIÓN FRACCIONES RoundDown NOTAS DEL EVENTO CORPORATIVO NOTA (22/06/2021) RETURN OF CAPITAL AND SHARE CONSOLIDATION Melrose Industries PLC has announced the completion of the GBP2.62 billion (USD3.625 billion) disposal of its Nortek Air Management Division to Madison Industries LLC and has confirmed the proposed return of approximately GBP730 million in cash to Shareholders, equivalent to 15 pence per Existing Ordinary Share. A circular seeking the approval of Shareholders in respect of the Proposed Return of Capital will be posted on 22 June 2021. As previously announced, in addition to funding the Proposed Return of Capital, the net Disposal proceeds will be used to contribute approximately GBP100 million to the GKN UK defined benefit pension schemes, so that the funding deficit will be less than GBP200 million, as well as to reduce Group net debt, so that the leverage in the Group adjusting for the Proposed Return of Capital will be below 2x EBITDA as at 30 June 2021.
    [Show full text]
  • Annual Report 2018 – Melrose Industries
    Buy Improve Sell Melrose Annual Report 2018 Melrose Industries PLC Melrose Industries PLC Melrose Annual Report 2018 Melrose Industries PLC Acquiring good quality manufacturing businesses, making operational improvements, realising shareholder value at the appropriate time and then returning this value to shareholders, continue to be the fundamentals of the “Buy, Improve, Sell” business strategy that Melrose has followed since it was founded in 2003. Our strategy Financial statements Our strategy and business model 2 Independent auditor’s report to the Strategy in action members of Melrose Industries PLC 114 GKN – Buy 4 Consolidated Income Statement 126 Nortek – Improve 6 Consolidated Statement Elster – Sell 8 of Comprehensive Income 127 Consolidated Statement of Cash Flows 128 Strategic Report Consolidated Balance Sheet 129 Consolidated Statement Shareholder value creation 10 of Changes in Equity 130 Highlights of the year 12 Notes to the Financial Statements 131 Chairman’s statement 14 Company Balance Sheet Chief Executive’s review 16 for Melrose Industries PLC 182 Key performance indicators 18 Company Statement of Changes in Equity 182 Divisional review Notes to the Company Balance Sheet 183 Aerospace 20 Glossary Automotive 24 193 Powder Metallurgy 28 Nortek Air & Security 32 Other Industrial 36 Shareholder information Finance Director’s review 40 Notice of Annual General Meeting 197 Longer-term viability statement 49 Company and shareholder information 202 Risk management 50 Risks and uncertainties 52 Corporate Social Responsibility 59 Governance Governance overview 70 For more information visit Board of Directors 72 melroseplc.net Directors’ report 74 Corporate governance report 78 Audit Committee report 82 Nomination Committee report 90 Directors’ Remuneration report 92 Statement of Directors’ responsibilities 113 Cautionary statement The Strategic Report and certain other sections of this Annual Report and financial statements contain forward-looking statements.
    [Show full text]
  • Sustainable Investment Report Marketing Material First Quarter 2020
    Sustainable Investment Report Marketing material First quarter 2020 Environmental, Social and Governance is referred to as ESG throughout Contents 1 13 Introduction Stewardship Insights Proxy voting: 2020 pre-season trends Engagement in practice: oilfield services 2 17 Sustainability Insights Stewardship Activity How coronavirus is turning the spotlight A new approach to reporting on sustainable investing Engagement in numbers How the investment industry can help during the Covid crisis Voting in numbers An investor guide to spotting Total company engagement “greenwashers” Engagement progress Will CO2 rules choke car industry profits? How sustainable are our cities? As the unprecedented Covid-19 situation evolves day-by-day, we all feel the effects. As investors we must navigate the immediate challenges, but we must also not lose sight of the long term. Ultimately, what matters most is identifying the investments that with both survive this period and thrive in the long term. Hannah Simons Head of Sustainability Strategy As we prepare the first report of 2020, I’m settling In the near term, we recognise that Covid-19 is putting into my new daily routine. My regular commute on a pressure on the profits of the car industry but new packed train has been replaced with a short walk to European emissions regulations look set to disrupt my kitchen table. A much welcomed change. I’m also things in the longer-term. Scott MacLennan, Fund home-schooling my children. I have often thought that Manager/Research Analyst European Equities and one day I would follow in Lucy Kellaway’s footsteps Nicholette MacDonald-Brown, Head of European Blend and retrain as a teacher.
    [Show full text]
  • Annex 1: Parker Review Survey Results As at 2 November 2020
    Annex 1: Parker Review survey results as at 2 November 2020 The data included in this table is a representation of the survey results as at 2 November 2020, which were self-declared by the FTSE 100 companies. As at March 2021, a further seven FTSE 100 companies have appointed directors from a minority ethnic group, effective in the early months of this year. These companies have been identified through an * in the table below. 3 3 4 4 2 2 Company Company 1 1 (source: BoardEx) Met Not Met Did Not Submit Data Respond Not Did Met Not Met Did Not Submit Data Respond Not Did 1 Admiral Group PLC a 27 Hargreaves Lansdown PLC a 2 Anglo American PLC a 28 Hikma Pharmaceuticals PLC a 3 Antofagasta PLC a 29 HSBC Holdings PLC a InterContinental Hotels 30 a 4 AstraZeneca PLC a Group PLC 5 Avast PLC a 31 Intermediate Capital Group PLC a 6 Aveva PLC a 32 Intertek Group PLC a 7 B&M European Value Retail S.A. a 33 J Sainsbury PLC a 8 Barclays PLC a 34 Johnson Matthey PLC a 9 Barratt Developments PLC a 35 Kingfisher PLC a 10 Berkeley Group Holdings PLC a 36 Legal & General Group PLC a 11 BHP Group PLC a 37 Lloyds Banking Group PLC a 12 BP PLC a 38 Melrose Industries PLC a 13 British American Tobacco PLC a 39 Mondi PLC a 14 British Land Company PLC a 40 National Grid PLC a 15 BT Group PLC a 41 NatWest Group PLC a 16 Bunzl PLC a 42 Ocado Group PLC a 17 Burberry Group PLC a 43 Pearson PLC a 18 Coca-Cola HBC AG a 44 Pennon Group PLC a 19 Compass Group PLC a 45 Phoenix Group Holdings PLC a 20 Diageo PLC a 46 Polymetal International PLC a 21 Experian PLC a 47
    [Show full text]
  • Constituents & Weights
    2 FTSE Russell Publications 19 August 2021 FTSE 100 Indicative Index Weight Data as at Closing on 30 June 2021 Index weight Index weight Index weight Constituent Country Constituent Country Constituent Country (%) (%) (%) 3i Group 0.59 UNITED GlaxoSmithKline 3.7 UNITED RELX 1.88 UNITED KINGDOM KINGDOM KINGDOM Admiral Group 0.35 UNITED Glencore 1.97 UNITED Rentokil Initial 0.49 UNITED KINGDOM KINGDOM KINGDOM Anglo American 1.86 UNITED Halma 0.54 UNITED Rightmove 0.29 UNITED KINGDOM KINGDOM KINGDOM Antofagasta 0.26 UNITED Hargreaves Lansdown 0.32 UNITED Rio Tinto 3.41 UNITED KINGDOM KINGDOM KINGDOM Ashtead Group 1.26 UNITED Hikma Pharmaceuticals 0.22 UNITED Rolls-Royce Holdings 0.39 UNITED KINGDOM KINGDOM KINGDOM Associated British Foods 0.41 UNITED HSBC Hldgs 4.5 UNITED Royal Dutch Shell A 3.13 UNITED KINGDOM KINGDOM KINGDOM AstraZeneca 6.02 UNITED Imperial Brands 0.77 UNITED Royal Dutch Shell B 2.74 UNITED KINGDOM KINGDOM KINGDOM Auto Trader Group 0.32 UNITED Informa 0.4 UNITED Royal Mail 0.28 UNITED KINGDOM KINGDOM KINGDOM Avast 0.14 UNITED InterContinental Hotels Group 0.46 UNITED Sage Group 0.39 UNITED KINGDOM KINGDOM KINGDOM Aveva Group 0.23 UNITED Intermediate Capital Group 0.31 UNITED Sainsbury (J) 0.24 UNITED KINGDOM KINGDOM KINGDOM Aviva 0.84 UNITED International Consolidated Airlines 0.34 UNITED Schroders 0.21 UNITED KINGDOM Group KINGDOM KINGDOM B&M European Value Retail 0.27 UNITED Intertek Group 0.47 UNITED Scottish Mortgage Inv Tst 1 UNITED KINGDOM KINGDOM KINGDOM BAE Systems 0.89 UNITED ITV 0.25 UNITED Segro 0.69 UNITED KINGDOM
    [Show full text]
  • Market Roundup Company Focus: Vodafone 31 August 2018
    31 August 2018 Market Roundup Chart 1: UK Month-on-Month Consumer Credit Growth UK shares finished slightly higher on Monday. The FTSE 100 gained 1.1% 0.2% to 7,577, despite Chancellor Phillip Hammond’s warning that a 0.9% no-deal Brexit would cost the UK £80billion and business and consum- ers digesting some alarming no-deal Brexit advisory notices from the 0.7% government. 0.5% 0.2% Mining stocks benefitted on the back of rising copper prices with Anglo 0.0% American, Glencore, Rio Tinto and BHP all higher. Shares in house- April May June July builders were down on disappointingly low mortgage approvals data that emerged last Friday, suggesting demand is falling. Tuesday saw UK shares rack up solid gains, with the FTSE100 up by MoM Change (%) 0.6%, helped by a fading pound. Miners were once again the main Source: Bank of England Data at 30/08/2018 beneficiaries, but the market dropped sharply on Wednesday, down 0.7%, even though there were hints of a Brexit breakthrough. Reports Chart 2: Number of Mortgage Approved Houses in the UK that the EU was prepared to offer Britain a deal “unlike any other” sent 66,000 the pound up in value, hurting the FTSE 100’s companies that earn 65,000 much of their revenue in dollars. Thursday was another day in the red 64,000 with the FTSE 100 down by 0.6% or 47.18 points to 7,516.03. In early 63,000 trade on Friday, blue chips shares were down, a possible reaction to 62,000 Donald Trump threatening to pull out of the World Trade Organisation, 61,000 but Whitbread shares were up on news it is to sell its Costa Coffee April May June July chain for £3.9billion.
    [Show full text]
  • Portfolio of Investments
    PORTFOLIO OF INVESTMENTS CTIVP® – Lazard International Equity Advantage Fund, March 31, 2020 (Unaudited) (Percentages represent value of investments compared to net assets) Investments in securities Common Stocks 96.4% Common Stocks (continued) Issuer Shares Value ($) Issuer Shares Value ($) Australia 6.4% Legrand SA 131,321 8,375,908 AGL Energy Ltd. 880,686 9,216,678 L’Oreal SA 104,607 27,073,419 Aristocrat Leisure Ltd. 728,775 9,443,206 Orange SA 949,535 11,496,452 ASX Ltd. 162,820 7,642,885 Peugeot SA 1,014,598 13,209,331 BHP Group Ltd. 471,264 8,549,345 Schneider Electric SE 553,434 46,777,833 CIMIC Group Ltd. 332,784 4,713,315 STMicroelectronics NV 400,446 8,608,225 CSL Ltd. 166,037 30,097,798 Total SA 1,095,152 41,264,011 Fortescue Metals Group Ltd. 4,669,354 28,614,857 Total 209,274,345 (a),(b) IDP Education Ltd. 447,152 3,487,548 Germany 4.2% Inghams Group Ltd. 1,200,179 2,405,115 Adidas AG 22,586 5,014,708 Magellan Financial Group Ltd. 729,823 19,356,167 Allianz SE, Registered Shares 319,746 54,451,936 Regis Resources Ltd. 1,318,187 2,929,557 Continental AG 32,324 2,304,645 Santos Ltd. 4,606,425 9,460,470 Dialog Semiconductor PLC(c) 82,878 2,154,248 (c) Saracen Mineral Holdings Ltd. 3,513,246 7,900,242 Hugo Boss AG 273,602 6,848,821 Technology One Ltd. 897,813 4,336,750 MTU Aero Engines AG 74,698 10,801,095 Total 148,153,933 SAP SE 91,344 10,198,367 Austria 0.2% Siemens Healthineers AG 179,517 6,939,504 OMV AG 81,189 2,221,890 Total 98,713,324 Raiffeisen Bank International AG 111,223 1,599,856 Hong Kong 3.9% Total 3,821,746 CK Hutchison Holdings Ltd.
    [Show full text]
  • Exclusion List
    Exclusion list ROBECO INSTITUTIONAL ASSET MANAGEMENT 1 Sustainability Inside Excluded companies: 61 Rimbunan Sawit Bhd 15 Bots Inc 62 Riverview Rubber Estates BHD 16 Bright Packaging Industry Bhd Controversial behavior 63 Salim Ivomas Pratama Tbk PT 17 Brilliant Circle Holdings International Ltd 1 G4S International Finance PLC 64 Sarawak Oil Palms Bhd 18 British American Tobacco Bangladesh Co Ltd 2 G4S PLC 65 Sarawak Plantation Bhd 19 British American Tobacco Chile Operaciones SA 3 Korea Electric Power Corp 66 Scope Industries Bhd 20 British American Tobacco Holdings The Netherlands BV 4 Oil & Natural Gas Corp Ltd1 67 Sin Heng Chan Malaya Bhd 21 British American Tobacco Kenya PLC 5 ONGC Nile Ganga BV 68 Sinar Mas Agro Resources & Technology Tbk PT 22 British American Tobacco Malaysia Bhd 6 ONGC Videsh Ltd 69 Socfin 23 British American Tobacco PLC 7 Vale Indonesia Tbk PT 70 Socfinasia SA 24 British American Tobacco Uganda Ltd 8 Vale SA2 71 Societe Camerounaise de Palmeraies 25 British American Tobacco Zambia PLC 72 Societe des Caoutchoucs de Grand-Bereby 26 British American Tobacco Zimbabwe Holdings Ltd Palm oil 73 SSMS Plantation Holdings Pte Ltd 27 Bulgartabac Holding AD 1 A Brown Co Inc 74 Sterling Plantations Ltd 28 Carreras Ltd/Jamaica 2 Agalawatte Plantations PLC 75 Subur Tiasa Holdings Bhd 29 Casey’s General Stores Inc 3 Anglo-Eastern Plantations PLC 76 Sungei Bagan Rubber Co Malaya Bhd 30 Cat Loi JSC 4 Astra Agro Lestari Tbk PT 77 Sunshine Holdings PLC 31 Ceylon Tobacco Co PLC 5 Astral Asia Bhd 78 Ta Ann Holdings Bhd 32 Champion
    [Show full text]
  • Melrose Industries PLC Annual Report for the Year Ended 31 December 2013 Melrose Industries PLC
    Buy Improve Sell Melrose Melrose Industries PLC Annual Report for the year ended 31 December 2013 Melrose Industries PLC Business strategy Melrose buys good manufacturing businesses with strong fundamentals, whose performance can be improved. Melrose finances its acquisitions using a low level of leverage, improves the businesses by a mixture of investment and changed management focus, sells them and returns the proceeds to shareholders. Read more about the p.14 Melrose business strategy Measuring success During the 10 year period since first listing, Melrose has grown its market capitalisation from £13 million to £3.9 billion and has created £3 billion of shareholder value.* The average annual return on investment during this period is 27%.** Read more about how p.32 Melrose measures success * October 2003 to 31 December 2013 ** Since the first acquisition in 2005 Download the latest Annual Report at www.melroseplc.net/investors/reports Melrose Industries PLC Annual Report 2013 01 Contents Market overview Strategy in action Strategic Report Strategic Report Melrose business strategies Proven ‘Buy-Improve-Sell’ Highlights 02 Melrose at a glance 04 reflect an in-depth knowledge track record. Market overview 06 and understanding of its markets Chairman’s statement 10 Chief Executive’s review 12 and of the current and emerging Business strategy 14 trends and regulations. Strategy in action 16 Elster Gas business review 22 Elster Electricity business review 24 Elster Water business review 26 Energy business review 28 Lifting business review 30 Key performance indicators 32 p.06 p.16 Risk management 34 Risks and uncertainties 36 Governance Finance Director’s review 40 Review of operations Board of Directors Corporate Social Responsibility 48 The Group is made up of five The Board has ultimate distinct operating segments: responsibility for the overall Governance Overview 54 Elster Gas, Elster Electricity, leadership of the Company.
    [Show full text]
  • Melrose Industries PLC
    Melrose Industries PLC Melrose Melrose Industries PLC Annual Report for the year ended 31 December 2012 Annual Report 201 2 Buy Improve Sell WorldReginfo - 703c06e0-f26c-4f6e-b756-1430a24e2b05 22154-04 — 27 March 2013 8:27 AM— Proof 18 Melrose Industries PLC Melrose’s strategy is to acquire manufacturing businesses in sectors it understands, enhance their performance and realise significant value often within a three to five year time frame. The Company is fully committed to investing within the businesses it acquires in order to exploit their operational and strategic strengths. The Group is made up of four distinct operating divisions: Energy, Lifting, Other Industrial and Elster. Pictured above: Cover pictures: Clockwise (L–R) Bridon supplied a variety of cable products for the Olympic Stadium in • Smart meter test bench at Elster Electricity. London; suspension cables and tension ring cables, including spiral strand • High accuracy plastic measuring chambers being moulded at Elster Water, cables and walkway cables, were used within the construction of the for use in both Smart and mechanical residential water meters. stadium roof. • Intermittent shuttle kiln, which has a furnace temperature of approximately 1,000°C. This equipment is used in the process of manufacturing technical ceramics such as isolators. Elster’s Gas Control equipment business supplied eight burners, together with burner control units and gas regulators. • Tubular stranding machine in Bridon’s new state-of-the-art manufacturing facility at Neptune Energy Park, Newcastle upon Tyne, UK. The stranding machine is used in the manufacture of steel wire strands and is equipped with the world’s largest strand compaction units.
    [Show full text]
  • Online Company Credit Reports. Speedy, Reliable and Competitively Priced!
    Online company credit reports. Speedy, reliable and competitively priced! Simon Antony Peckhan 910574064 Director Information Title Mr Honours Name Simon Antony Peckhan Number 910574064 Postcode W8 4SG Address Pavilion Penthouse Floor 96 Kensington High Street London United Kingdom Date of birth August 1962 Nationality British Total current 22 directorships List of Current Directorships Company Name Number Company Status App. Date Res. Date Position GREENSPHERE ADVISORS LIMITED 11019811 Company is dissolved 22/11/2017 Director MELROSE INDUSTRIES PLC 09800044 Active - Accounts Filed 29/09/2015 Director ZEBRA 123 LIMITED 09792342 Company is dissolved 23/09/2015 Director MCKECHNIE EMPLOYEE SERVICES 08081388 Company is dissolved 31/07/2012 Director LIMITED MELROSE PFG COMPANY NUMBER 01668314 Company is dissolved 16/07/2008 Director 1 LIMITED BRUSH TRAINS OLDCO 03265088 Company is dissolved 01/07/2008 Director FKI MINING LIMITED 00108274 Company is dissolved 01/07/2008 Director HAMSARD 2386 LIMITED 04287995 Company is dissolved 01/07/2008 Director HAMSARD 2364 LIMITED 04254554 Company is dissolved 01/07/2008 Director FISHER-KARPARK HOLDINGS 00646714 Company is dissolved 01/07/2008 Director LIMITED FKI ASTRAEUS LTD 04225698 Company is dissolved 01/07/2008 Director FKI HELIOS LTD 04225689 Company is dissolved 01/07/2008 Director FKI HERACLES LTD 04225686 Company is dissolved 01/07/2008 Director HAMSARD 2291 LIMITED 04179373 Company is dissolved 01/07/2008 Director HAMSARD 2273 LIMITED 04145638 Company is dissolved 01/07/2008 Director HAMSARD
    [Show full text]
  • View Annual Report
    Melrose PLC PLC Melrose Melrose PLC Annual Report 2010 Annual Report 2010 Report Annual Making acquisitions Driving performance www.melroseplc.net Realising value Contents How we performed Business performance “ These are excellent results from businesses 01 Financial highlights well positioned to enjoy superior growth in the 02 Group at a glance years to come. We are proud of the fact that 04 Chairman’s statement overall group profits have not declined through 06 Chief Executive’s review this sharp recession and at the current share 08 Energy business review price Melrose has created over £1 billion of 11 Lifting business review shareholder value since flotation in 2003. 14 Dynacast business review 16 Other Industrial business review We are considering the sale of Dynacast and 19 Finance Director’s review looking for our next acquisition but will only 26 Board of Directors proceed if we believe it creates shareholder 28 Directors’ report value. Looking ahead, we are confident of further progress in 2011 and beyond.” Governance 36 Corporate Governance report 40 Remuneration report Christopher Miller 44 Statement of Directors’ responsibilities Chairman Financials 45 Financial contents 46 Independent auditor’s report – consolidated statements 47 Consolidated Income Statement 48 Consolidated Statement of Comprehensive Income 49 Consolidated Statement of Cash Flows 50 Consolidated Balance Sheet 51 Consolidated Statement of Changes in Equity 52 Notes to the accounts 88 Independent auditor’s report – Company statements 89 Company Balance Sheet for Melrose PLC 90 Notes to the Company Balance Sheet Shareholder information 97 Notice of Annual General Meeting 100 Company and shareholder information Designed and produced by Merchant www.merchant.co.uk The cover of this report is printed on Taffeta Ivory Board and the text pages on Heaven 42 paper.
    [Show full text]