The £3.3bn sale of Elster to industrial giant Honeywell completed in December helped turnaround specialist Melrose Industries (MRO) pay off its borrowings and pay a big wedge of cash to shareholders. But adjusted operating profit, excluding the Elster deal, fell by more than half to just under £21m as its remaining business, generator manufacturer Brush, continued to struggle.
Brush continues to experience generally tough trading conditions, but also disappointment over a £30m turbogenerator manufacturing plant near Shanghai, which became operational in March. A delay in the Chinese government's switch from coal to gas-fired power stations has set back sales, and the development of the business is up to two years behind original projections.