Melrose on the prowl for more deals after Nortek cheers

Melrose is “busy” hunting for its next deal after squeezing more profits out of US manufacturer Nortek, it said on Thursday.

Chairman Chris Miller said the firm — which buys struggling companies, tries to improve them and sell them for a profit — had already started running the rule over potential takeover targets and he was “confident” of clinching a deal.

It bought manufacturer Nortek last summer and has already seen operating profit rise 54% to £145.5 million.

“Nortek has delivered the fastest initial improvement in performance Melrose has ever achieved,” Miller said.

However, the group also sounded the alarm over its oil and gas business.

Brush, which supplies gear to the energy sector fared worse after experiencing the toughest market conditions since Melrose bought it in 2008.

The company said “appropriate actions” were being taken to solve the problem.

Overall pre-tax profits rose to £47.8 million for the six months ending June, reversing a £9.2 million loss. Revenue topped £1 billion, with most of that coming from Nortek. The dividend rose to 1.4p per share, from 0.3p last time.