Melrose Industries raises dividend as it reports rise annual in pre-tax profits

4th Mar 2015 09:41

Melrose Industries raised its dividend despite currency headwinds eating away at full-year pre-tax profit.The investment company proposed a dividend of 5.3p per share, taking the full-year payout to 8.1p, a 5% cent increase on 2013.The group reported a 21% increase in annual pre-tax profit to £213m on a constant currency basis but taking into account foreign exchange movements it marked an 11% rise.Elster, the gas, electricity and water metering business, enjoyed profit growth which is up by two thirds since its acquisition in 2012. Profit in gas was up 13% while electricity and water grew 23% and 11% respectively."We look forward to a further acquisition in due course to continue our success," said chairman Christopher Miller.Revenue from continuing businesses for the year was £1.37bn, down from £1.46bn the previous year, as the company's energy unit Brush suffered a decline in earnings due to difficult end markets with its original equipment manufacturer (OEM) business.Looking ahead, Melrose warned: "We encountered foreign exchange headwinds in 2014 and while these have abated somewhat in recent months as regards the US Dollar, the further weakness in the euro and the rouble suggest a further 5% headwind in 2015 based on current exchange rates. exchange rates."