(Reuters) -GKN Aerospace owner Melrose Industries reported a 14% rise in revenue for the four months to October 31, lifted by robust demand in aftermarket services and continued strength in its engines division.
Geopolitical tensions have spurred higher defence spending, bolstering demand for suppliers like Melrose, while production delays at major customers have kept older aircraft flying longer, driving demand for parts and repairs, the company’s most profitable segment.
In a statement, Melrose said geopolitical uncertainty is triggering a step change in defence spending, creating fresh growth opportunities for the aerospace parts supplier.
Meanwhile, the U.S.-UK trade agreement announced in June, which removed the 10% import duty on UK-made engines and aerospace components, has also helped the company by eliminating price distortions for key customers.
The London-listed supplier maintained its full-year guidance for adjusted operating profit and free cash flow unchanged.
($1 = 0.7451 pounds)
(Reporting by Rishab Shaju in Bengaluru; Editing by Sumana Nandy)
