Melrose Shares Drop as Garden Grove Incident Adds £30m in Costs
Shares of Melrose Industries fell by 3.5% following a warning about additional exceptional costs linked to an incident at its Garden Grove facility in the US. The company expects between £25 million and £30 million in extra expenses for the second half of 2026, related to regulatory and legal processes stemming from the chemical tank event. Melrose has paused a £175 million share buyback programme while assessing financial impacts and is reviewing its insurance position. The Garden Grove plant returned to partial production after May’s incident but operates at about 50% capacity until full resumption. Despite this, first-half revenue rose by 10%, reaching £1.87 billion, with adjusted operating profit up 16% to £347 million. The company maintained its annual guidance excluding the Garden Grove impact and expects total revenue between £3.75 billion and £3.95 billion for the year.
Topics: exceptional costs production disruption share price decline