Melrose Industries PLC on Thursday recorded a return to growth in its Aerospace division at the start of 2022 but noted that its Automotive and Powder Metallurgy arms are lagging behind, on supply chain issues.

Melrose is a London-based turnaround firm which specialises in buying and improving manufacturing firms.

The FTSE 100 company said it is trading in line with expectations for the year, in the period to April 30 from January 1.

It said that its Aerospace division was experiencing continued growth, consistent with industry trends, showing an increase in like-for-like sales of 6% in the period.

Its Automotive and Powder Metallurgy divisions, however, remain constrained by supply. Combined like-for-like sales were down 4%, ‘significantly below’ underlying consumer demand levels, Melrose noted.

Melrose said it is confident its restructuring actions will ensure that all its businesses can deliver their full potential as supply constraints ease.

Due to the time lag effect, however, it expects its performance to be second half weighted.

‘We are increasingly seeing growth return to our Aerospace business, which is being rapidly well positioned for its future, and are confident of demonstrating the full quality of our largely restructured automotive businesses. We are well set to realise shareholder value as conditions improve,’ Chief Executive Simon Peckham said.

Shares were up 3.4% at 119.55 pence each on Thursday morning in London.

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