DOCSLIB.ORG

Melrose Industries PLC – Annual Report 2016

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Melrose Industries PLC – Annual Report 2016 Buy Improve Sell Melrose Melrose Industries PLC Melrose Industries PLC Annual Report Annual Report 2016 for the year ended 31 December 2016 Melrose Industries PLC This has been a tremendous year for Melrose and we are delighted with the performance of Nortek, which is exceeding expectations. All aspects of the business are being improved and its prospects are better than originally thought. Buy Improve Sell Acquiring good quality manufacturing businesses, making operational improvements, realising shareholder value at the appropriate time and then returning this value to shareholders continues to be the fundamentals of the “buy, improve, sell” business strategy that Melrose has followed since being founded in 2003. Melrose Industries PLC Annual Report 2016 01 Strategic Report P02 Performance summary 02 Track record 04 Chairman’s statement 06 Chief Executive’s review 07 Market overview 08 Our strategy and business model 12 Strategy in action 14 Key performance indicators 18 Divisional review 20 Finance Director’s review 30 Longer-term viability statement 37 Risk management 38 Risks and uncertainties 40 Corporate Social Responsibility 46 Essential reading Governance P54 Governance overview 54 Board of Directors 56 p.02 Directors’ report 58 Corporate governance report 62 Strategic Report Audit Committee report 66 Nomination Committee report 70 p.20 Directors’ remuneration report 72 Statement of Directors’ responsibilities 85 Divisional review Financials P86 p.30 Independent auditor’s report to the 87 members of Melrose Industries PLC Finance Director’s review Consolidated Income Statement 93 Consolidated Statement of Comprehensive Income 94 Consolidated Statement of Cash Flows 95 p.54 Consolidated Balance Sheet 96 Consolidated Statement of Changes in Equity 97 Governance overview Notes to the financial statements 98 Company Balance Sheet for Melrose Industries PLC 141 Company Statement of Changes in Equity 141 Notes to the Company Balance Sheet 142 Shareholder information P147 Notice of Annual General Meeting 147 Company and shareholder information 153 Download the Annual Report www.melroseplc.net/investors/reports Cautionary statement The Strategic Report and certain other sections of this Annual Report contain 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. Accordingly, readers are cautioned not to place undue reliance on any such forward-looking statements. Subject to compliance with applicable laws and regulations, Melrose does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this Annual Report. The Strategic Report has been prepared solely to provide additional information to shareholders to assess the Company’s strategies and the potential for those strategies to succeed. Some financial and other numerical data in this Annual Report and financial statements has been rounded and, as a result, the numerical figures shown as totals may vary slightly from the exact arithmetic aggregation of the figures that precede them. Melrose Industries PLC 02 Annual Report 2016 Performance summary Following the acquisition of Nortek in August, the continuing operations of the Group now consist of four divisions. Only the four months of trading since the acquisition have been included in these results for the former Nortek businesses, all of which have made a very strong start under Melrose ownership. Financial Revenue (£m) Underlying(1) operating profit margin(2) (%) £889.3 million 11.7% 2015 £261.1m 2015 9.5% 2016 £889.3m 2016 11.7% Underlying(1) operating profit (£m) £104.1 million 2015 £24.8m 2016 £104.1m 2016 statutory IFRS loss after tax of £39.0 million (2015: £16.3 million) (1) Considered by the Board to be the best measure of performance. A reconciliation of statutory profit/(loss) to underlying profit/(loss) is given in the Finance Director’s review on page 30. (2) Underlying (1) operating profit as a percentage of revenue for the continuing Group. Melrose Industries PLC Annual Report 2016 03 Strategic Report p.14 p.20 p.30 Strategy in action Divisional review Finance Director’s review Acquisition of Nortek Enterprise value £2.2 billion Rights Issue £1.6 billion Debt financing £0.6 billion Melrose Industries PLC 04 Annual Report 2016 A strong track record Melrose is very pleased with the track record achieved over its 13-year history since floating on AIM in 2003. It has achieved an average annual return on equity investment of 26% since making the first acquisition in 2005, with an increase in operating margins between five and nine percentage points across the businesses sold to date. Bought for (1) Sold for (1) £1.8bn £3.3bn August 2012 £1.0bn £1.8bn July 2008 Up to 1 March 2017 (2) £0.4bn £0.8bn May 2005 As at 1 March 2017, track record for £1 invested in Melrose Since the first deal in 2005, assuming participation in every fund raising and capital return and dividend receipt. Investment Total investment £1 £11.85 £12.85 Original Additional investment in investment subsequent capital raisings Returns Total returns £13.24 £ 1. 8 3 £14.27 £29.34 Capital returns Ordinary Market value dividends of shares held Net return Net return £16.49 £16.49 (1) Enterprise value. (2) Brush was also acquired as part of the acquisition of FKI and remains part of the Melrose Group. This calculation includes a consensus value of the Brush business as at 1 March 2017. (3) Considered by the Board to be the best measure of performance. A reconciliation of statutory profit/(loss) to underlying profit/(loss) is given in the Finance Director’s review on page 30. (4) As at 1 March 2017. Melrose Industries PLC Annual Report 2016 05 Strategic Report Operational improvements Shareholder return Investment in the businesses Underlying(3) operating margin Equity rate Shareholder return Post-acquisition investment as a improvement (percentage points) of return on original equity percentage of original equity price +9ppts 33% 2.3x 25% +5ppts 33% 3.4 x 62% +6ppts 30% 3.0 x 51% Shareholder investment and gain(4) The future Melrose is well-positioned to create superior shareholder value 26% Since floating on AIM in 2003, Melrose has raised £3.6 billion Average annual return from shareholders, and has returned £4.3 billion in cash to investors. for a shareholder since Melrose acquired the former Nortek businesses in August 2016 the first acquisition £4.8bn for an enterprise value of £2.2 billion, which, together with Brush, now comprise the Group. It continues to invest in the “buy, Shareholder value created improve, sell” business model, which management believes can 2.6x create significant further value from similar deals in the future. Average return on equity Melrose has a simple and transparent executive remuneration across all businesses sold framework that is aligned with shareholders’ interests and supports the delivery of the Group’s value creation strategy. A history of value creation 2005 2007 2011 2012 2014 2015 2016 2016 2003 December August August August February March February August October Entered the £220 million £373 million Fully underwritten £595 million £200 million £2.4 billion Fully underwritten Floated FTSE 250 on returned to returned to £1.2 billion returned to returned to returned to £1.6 billion on AIM London’s main shareholders shareholders Rights Issue shareholders shareholders shareholders Rights Issue exchange Melrose Industries PLC 06 Annual Report 2016 Chairman’s statement “ We rely on shareholder support for our ability to secure acquisitions where we can materially improve businesses and create value for our investors. The progress made at Nortek should give further confidence that our approach can continue to identify new opportunities even in challenging times.” Christopher Miller, Chairman I am pleased to report on our Dividend Strategy 14th set of annual results since The Board proposes to pay a final dividend Consistent with our “buy, improve, sell” flotation in 2003. Since the date of 1.9 pence per share (2015: 0.5 pence (1)), strategy, the Nortek businesses have been of the first acquisition in 2005, making a total of 2.2 pence for the year the subject of significant change and a (1) Melrose has created net (2015: 1.0 pence ), in line with its progressive number of improvements have already been shareholder value of £4.8 billion annual dividend policy. This will be paid on delivered in the short period of Melrose 16 May 2017 to those shareholders on the ownership, with more planned for 2017. and achieved an average annual register on 7 April 2017, subject to approval At Brush, targeted investment in product return for a shareholder of 26% at the Annual General Meeting (AGM) on development continues in order to maximise (as at 1 March 2017). 11 May 2017. opportunities in a tough market, with the business focused on becoming the most Calendar year 2016 Board matters agile, responsive and cost effective supplier 2016 has been another successful year. In Succession planning is critical to maintaining in the industry. February 2016, £2.4 billion was returned to the effectiveness and quality of the Melrose shareholders following the sale of Elster in Board and it remains an area of focus for Whilst the implementation of improvements December 2015. In August, Nortek was 2017. John Grant will be retiring from the across our existing businesses remains our acquired for £2.2 billion, financed from the Board at the conclusion of this year’s AGM, key area of focus, we continue to see net proceeds of a successful Rights Issue having held a non-executive position on the businesses that are candidates for our raising £1.6 billion, with the balance funded Melrose Board since 2006 and is currently management and investment methods through debt of £0.6 billion.
Load more

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]
  • 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
    [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]
  • FTSE 100 & the UK Modern Slavery
    FTSE 100 & the UK Modern Slavery Act: From Disclosure to Action 02 FTSE 100 & the UK Modern Slavery Act: Table of Contents 03 Executive summary ▌ Key findings ▌ Key recommendations 06 FTSE 100 Ranking 09 Introduction ▌ Policy developments 11 UK Modern Slavery Act 12 Methodology ▌ Review and revision ▌ Assessment ▌ Minimum requirements 14 Structure, Business & Supply Chains 15 Policies in Relation to Slavery & Trafficking 16 Due Diligence Process 18 Risk Assessment & Management 20 Effectiveness 21 Training 22 Wider trends ▌ Compliance with Section 54 of the MSA ▌ Gaps in reporting ▌ Business model 24 From mandatory transparency to mandatory due diligence 25 Conclusion 26 Recommendations ▌ UK Government ▌ Companies ▌ Investors From Disclosure to Action 03 Executive summary Modern slavery and human trafficking are now the second largest criminal industry in the world. The Global Slavery Index estimates there are 16 million victims of forced labour in the private sector. It is an uncomfortable truth that many of the goods and services sold by companies every day are produced by workers who suffer the most severe exploitation. In 2015, the UK Government introduced the Modern Slavery Act (MSA), which requires certain companies publish an annual statement detailing what steps they have taken to tackle modern slavery, both in their operations and in their supply chains. Business & Human Rights Resource Centre has tracked companies’ reporting every year since, and our findings show that the MSA has failed to deliver the transformational change many hoped for. Three years on, most companies still publish generic statements committing to fight modern slavery, without explaining how. Sadly, only a handful of leading companies have demonstrated a genuine effort in their reporting to identify and mitigate risks.
    [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]