StockMarketWire.com - Engineering firm Melrose Resources reported a 5.6% year-on-year increase in adjusted revenue to £3.83 billion for the six months to 30 June 2021.

Adjusted profit after tax swung from a £80 million loss in 2020 to a £109 million profit. Free cash flow came in at £75 million.

The company said it was 'trading ahead of expectations, with better profit margins, better earnings per share and significantly lower net debt'.

On a statutory basis the company reported a narrowed pre-tax loss of £256 million, down from £720 million.

Melrose reported that all businesses improved their adjusted operating margin in the Period compared to 2020 full year: Aerospace by +2.9 percentage points; Automotive by +4.0 percentage points; Powder Metallurgy by +6.9 percentage points; and Ergotron by +0.8 percentage points.

Automotive and Powder Metallurgy are ahead of plan on their restructuring projects.

Net debt was down from £3.4 billion to £300 million although the company reported that an imminent return of capital to shareholders would lift this number to £1.03 billion.

Chairman Justin Dowley commented: 'We have scope on our balance sheet to return more money to shareholders next year and we are excited by the upcoming possibilities.'

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