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Melrose Faces £30M Cost Hit From Chemical Incident
1 Aug
Summary
- Melrose anticipates £25-£30 million in exceptional costs due to a chemical incident.
- The company has temporarily suspended its £175 million share buyback program.
- Despite the incident, first-half revenue rose 10% to £1.87 billion.
Melrose Industries PLC is bracing for additional exceptional costs totaling £25 million to £30 million in the latter half of 2026. These expenses stem from an ongoing response to a chemical tank incident at its Garden Grove facility in the United States. The company has halted its £175 million share buyback initiative while it evaluates the full financial consequences of the incident.
The Garden Grove site, which experienced the incident in May, has partially resumed operations, currently running at approximately 50% of normal capacity. This incident led to a reduction of £16.00 million in first-half revenue and £9.00 million in adjusted operating profit.
Despite these challenges, Melrose reported a positive financial performance for the first half of the year. Revenue increased by 10% to £1.87 billion, and adjusted operating profit saw a 16% rise to £347 million. The company has maintained its full-year financial guidance, excluding the impact of the Garden Grove incident, projecting revenue between £3.75 billion and £3.95 billion.
