Melrose on track to hit annual targets despite weak generator demand

14th May 2015 11:46

Industrial engineering company Melrose Industries upheld its positive outlook on Thursday, as its gas, electricity and water metering trade offset weak demand in its electricity generation arm.The company's Elster Gas division's, operating profit and order intake continued to improve in 2015, unfazed by the crash of oil prices thanks to its lack of reliance on the upstream oil and gas industry. Furthermore, integration of the Eclipse business acquired in October remained ahead of schedule, the company said.Elster Electricity also hit the ground running in 2015, with improved year-on-year trading in what is typically a slower seasonal period. Meanwhile, Elster Water remained on track for annual profit growth.Melorse's Brush business was consistent with expectations that trade would be sluggish in the first half, before accelerating in the latter part of the year, due to a slowdown in turbo-generator demand and difficult market conditions across the oil and gas sector."Overall, trading in the Period allows the board to be confident about the performance of Melrose this year. The board continues to be keen on finding the next acquisition," a company spokesperson said.Melrose was trading 1.8pm or 0.69% higher at 262p as of 12:15.