Rosebank Industries shares jump as forecasts profit ahead of consensus

Rosebank Industries PLC on Tuesday said it expects adjusted operating profit and earnings per share in 2026 to be ahead of expectations reflecting strong trading and order intake.

In response, shares in the London-based industrial company investor jumped 13% to 337.46 pence each in London on Tuesday, one of the best performing stocks on the FTSE 250, which was up 0.5%.

In a trading update covering the six months to June 30, Rosebank said MW Components has performed strongly with each of the three businesses growing ahead of pre-acquisition expectations.

The restructure of MW Components into three separate stand-alone businesses - Fasteners; Springs; and Precision Components - is expected to be completed in the third quarter, with the closure of the division's head office to result in full year cost reduction of at least USD15 million.

The performance of CPM has been as expected since acquisition, which includes aftermarket revenue growing consistently at around 7% compared to last year, the firm observed.

"The order backlog, current pipeline and strong order intake seen in the early weeks of ownership for both the Aftermarket and Machines businesses gives us confidence that CPM is on track to meet market expectations for 2026," Rosebank said.

Rosebank said an initial phase of restructuring head office and divisional costs at CPM will result in a full year cost reduction of at least USD10 million.

ECI is trading in line with full year expectations with revenue in the period 4% lower than the same period last year. Appliance & HVAC revenue was 13% lower on-year but "encouragingly", higher margin Electrification and Industrial businesses saw revenue growth of 9%.

"All three of our businesses are improving their performance as a result of actions taken since their acquisition. Whilst we have had to cope with well understood headwinds in the Appliance business of ECI, we are confident in our plans for each of the three businesses and look forward to the months to come," said Chief Executive Simon Peckham.

As a result, Rosebank expects full-year adjusted operating profit and EPS to be ahead of company compiled consensus. Rosebank put consensus for adjusted operating profit at USD294 million for 2026 and USD452 million for 2027.

Rosebank said the strong trading performance in all three MW Components businesses and the recent strong order intake seen in CPM gives it confidence that the group will continue to outperform into 2027.

Rosebank will report interim results on September 3.

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