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Melrose Industries has reported a near 20% fall in revenue for 2020 - a direct result of the Covid-19 crisis.
The group made an adjusted operating profit of £340 million in 2020, while the statutory operating loss was £338 million. Of the £678 million adjusting items, only £178 million were cash items, almost all related to restructuring.
Trading was at the top end of management expectations throughout the second half of 2020. Excluding Aerospace, the other divisions on average achieved increased second half revenue over 2019 of 2% and 9% in the final quarter.
The strong cash generation resulted in group net debt reducing by over £400 million to £2.85 billion at the end of 2020. Year end leverage was 4.1x EBITDA, but annualising the second half performance the proforma leverage was approximately 3.2x EBITDA.
The accounting deficit on the GKN UK defined benefit pension schemes has been cut by over 80% from £0.7 billion just before acquisition to £0.1 billion, the company said.
Justin Dowley, chairman of Melrose Industries, said: 'Whilst the COVID-19 crisis has had a major detrimental effect this year, Melrose has generated record cash flows and continued to invest to improve our businesses.
'All of this positions the group well for a good recovery and strong performance in the future. Amidst these difficult conditions, Melrose has also managed to significantly reduce the £1 billion GKN UK pension scheme funding deficit that we inherited at the time of acquisition.'
At 8:16am: (LON:MRO) Melrose Industries PLC share price was 0p at 148.6p