Earnings release
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RNS Number : 1135NRosebank Industries PLC21 July 2026 21 July 2026 ROSEBANK INDUSTRIES PLC ("ROSEBANK" OR THE "COMPANY" OR THE "GROUP") ACQUISITION UPDATE FOLLOWING THE COMPLETION OF MW COMPONENTS AND CPM; H12026 TRADING UPDATE; FULL YEAR EXPECTATIONS UPGRADED Rosebank announces the following acquisition and trading update for the six month period from 1 January to 30June 2026 ("the Period"), including the positive performance of CPM and MW Components, following theiracquisitions on 12 May 2026 and 28 May 2026 respectively. MW Components MW Components performed strongly in the first half of the year, with each of the three businesses growing aheadof our pre-acquisition expectations. Strong order intake has continued in the initial ownership period, and whencombined with decisive cost and operational actions, gives us confidence that MW Components will exceedcurrent market expectations for 2026. Key actions to improve performance have already been taken in our short period of ownership, in line with ourpre-acquisition plan. These actions create the foundation for achieving stated targets and include: · The start of the legal restructure of MW Components into three separate stand-alone businesses: Fasteners;Springs; and Precision Components, in line with the management structure already implemented. This isexpected to be completed in the third quarter of 2026 · The agreement of strategic plans with the management of the three separate businesses that align withRosebank's stated shareholder returns · The closure of the MW Components head office, which will result in a full year central cost reduction of atleast $15 million · The announcement of three factory closures, two in Springs and one in Precision Components, with furtheroptimisation opportunities identified · The approval of an initial $30 million capital expenditure, with appropriate paybacks, that will both increasecapacity and improve efficiency in the businesses. This includes approximately $14 million in theFasteners Addison facility CPM Since taking ownership the performance of CPM has been as expected, which includes Aftermarket revenuegrowing consistently at approximately 7% in the Period compared to last year. The order backlog, current pipelineand strong order intake seen in the early weeks of ownership for both the Aftermarket and Machines businessesgives us confidence that CPM is on track to meet market expectations for 2026. Key actions to improve the performance of CPM have been commenced, which include: · CPM's organisation structure being simplified, including all Aftermarket activities being placed under aunified leadership structure · The acquisition of CPM's aftermarket distributor in the UK and Ireland being completed for €26 million, inline with an ongoing strategy to grow CPM's aftermarket business · An initial phase of restructuring head office and divisional costs, which will result in a full year costreduction of at least $10 million
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· The commencement of a restructuring plan in the former Process Solutions division, including the potentialdisposal of a sub-division, multiple site consolidations, and the remaining businesses in this division beingmerged into the Industrial Solutions division · The recruitment of a new CEO, who will join the business on 1 October 2026 ECI ECI is trading in line with full year 2026 expectations. Revenue in the Period was 4% lower than the same period last year, including exiting low margin revenue in linewith our acquisition plan, which to date has contributed 3% of the year on year decline. Appliance & HVAC ("A&H") revenue was 13% lower than the same period last year, which included the largemajority of the exited low margin revenue in the Period and is consistent with what has been seen andcommunicated in A&H end markets. This has temporarily masked some of the improvements in this business. Encouragingly, the higher margin Electrification and Industrial ("E&I") businesses benefitted from revenue growthof 9% in the Period compared to the same period last year, with particularly strong growth in the Industrial Techend markets that ECI serves. All tariffs incurred have been fully recovered by ECI in the Period. ECI adjusted operating margin was 16.1% in the Period, 1.0 percentage point higher than the same period last year,continuing to build on the momentum seen in our ownership. Improvement plans announced last year are beingaccelerated. Outlook Adjusted operating profit and EPS for the Group are expected to be ahead of Company compiled analysts' consensus1 for 2026. In addition, and encouragingly, the strong trading performance being seen in all three MW Components businessesand the recent strong order intake seen in CPM gives us confidence that the Group will continue to outperform into2027. Fast and effective early actions have been taken in each of the businesses we own, giving us confidence that wewill achieve our strategy in delivering the intended returns for each of these three investments. Rosebank Industries plc Interim Results will be announced on 3 September 2026. Simon Peckham, Chief Executive of Rosebank Industries plc, today said: "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 inour plans for each of the three businesses and look forward to the months to come." ENDS Notes: 1. Company compiled consensus Rosebank Group adjusted operating profit for 2026 of $294 million and 2027 of $452 million Enquiries:Rosebank Industries plc:Simon Peckham Chief ExecutiveMatthew Richards Group Finance Director Investor Relations:Chris Dyett +44 (0) 7974 974 690, ir@rosebankindustries.com Montfort Communications:Nick Miles +44 (0) 7739 701 634, miles@montfort.london Charlotte McMullen +44 (0) 7921 881 800, mcmullen@montfort.london
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