Shares in industrial investor Melrose rose more than nine per cent yesterday after revealing it had cut its debts by £127 million.
The Alcester-based company, which has investments in more than a dozen firms, revealed it had slashed its net debt to £416 million by June 30.
In a trading statement, the company said market conditions remained unchanged in recent months and its cash generation was strong and it continued to trade in line with expectations.
Chairman Christopher Miller said: ‘We are very pleased the combination of excellent cash generation from trading, disposals and exchange has enabled us to report a substantial reduction in net debt at the half year. Our full interim results will be announced as planned on August 28.
“In the meantime trading for the full year remains in line with expectations.”
The statement continued: “Cash generation for the group during the first six months of 2009 has been excellent, resulting from the continuing strong focus on cost reductions and working capital management, and cash raised from disposals, in particular Logistex US.”