Melrose Industries: GKN Aerospace Special Products Group

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Regarding the Special Products Group and its seven sites, can you provide a ballpark figure for the total size of the business?

At that point in time, it would generate probably 500 million at its peak. However, it generated significant margins. The aerostructures business, which you would have seen on site, is generating over 2 billion in 2023. The margins there are challenging, likely between 5% to 10%, if you're fortunate. You're supplying to companies like Boeing, Airbus, and other airframers, and the aftermarket doesn't provide extra bonuses.

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Regarding the Special Products Group and its seven sites, can you provide a ballpark figure for the total size of the business?

In the niche and engines market, you have access to spares and repairs, which opens the door to higher margins. While it may not be like other industries, the aerospace industry can generate margins of around 40% at the high end. The hard work is in the original equipment (OE) that you must win to access the aftermarket.

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If you were to isolate that business, the leading edge business today, how much of it is delivery at OE versus replacement?

Unlike the transparency side, like cockpit windows and military canopies, I'd say about 20% is the aftermarket for something like that. For flight deck windows, it's between 40% and 50%, depending on the platform.

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