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Melrose shares drop 3.5% as £30m costs loom from US chemical tank incident

Market News
31 Jul 2026
Proactive Investors
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Bearish
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Melrose Industries warned of an additional £25-30 million in exceptional costs due to a chemical tank incident at its Garden Grove facility in the US, causing shares to fall 3.5%. The incident, which occurred in May, has led to a partial production halt, with the site operating at about 50% capacity. Despite this, Melrose reported a 10% rise in first-half revenue to £1.87 billion and a 16% increase in adjusted operating profit to £347 million. The company paused its £175 million share buyback program and is reviewing its insurance position while maintaining full-year guidance excluding the incident's impact.

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