Rosebank executives increase share stakes as FTSE 250 group pursues acquisitions

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Rosebank execs boost stakes

Highlights

Rosebank acquired MW Components and CPM for $3.1 billion, £2.3 billion in May, expanding to three businesses in its acquisition-driven growth strategy.
CEO Simon Peckham and COO Liam Butterworth purchased £350,000 and £100,000 of shares respectively on June 26, signalling management confidence as Rosebank streamlines operations and targets higher-margin segments.
Rosebank trades at 17 times forward FY2027 earnings, with analyst target price over 35 per cent above current levels, while shares remain down year to date since FTSE 250 inclusion.

Management buying follows expansion drive

As reported by Financial Times, Rosebank has expanded to three businesses after spending $3.1 billion, £2.3 billion, last month on metal components supplier MW Components and CPM, which makes equipment used in areas including oilseed and animal feed production. Its first acquisition came last summer with the purchase of wire harnesses business Electrical Components International.

On June 26, chief executive Simon Peckham bought £350,000 of shares and chief operating officer Liam Butterworth bought £100,000 of shares, signalling management confidence as the group works to widen operating margins at its new assets. The company is closing offices, streamlining divisions and shifting work toward more profitable segments, including a greater aerospace mix at MW.

Rosebank was established by former Melrose Industries leaders Simon Peckham and Christopher Miller, and several members of its management team also previously worked at the FTSE 100 aerospace company. The group told U.S. investors at the end of June that it sees a clear path to doubling shareholders' investment over three to five years.

Valuation and director dealing spotlight FTSE 250 names

Rosebank shares are down year to date, despite the company joining the FTSE 250 less than two years after listing on Aim as a £50 million cash shell. Analysts at Berenberg say the recent weakness offers an opportunistic entry point, and they model only a limited effect on the group from a 50 basis point increase in U.S. interest rates.

Rosebank trades on 17 times forward consensus earnings for FY2027, while the mean analyst target price stands more than 35 per cent above the current share price. Its two largest shareholders are fund managers Invesco and Artemis.

Elsewhere in the FTSE 250, Genus non-executive director Celia Baxter has bought 2,336 ordinary shares at an average 2,139p each, for a holding worth just under £50,000. The purchase follows a strong run for the animal genetics group, whose shares have outperformed the FTSE All-Share index by 46 per cent over the past year, supported by a 57 per cent rise in first-half pre-tax profit to £55.7 million and strategic moves including a Chinese porcine joint venture and Canadian approval for PIC's PRRS-resistant pig gene edit.

Investors are now looking to Genus's full-year results for the year to June 30, due in early September, for the next indication of whether that momentum continues.

Our earlier article on analysts’ stock picks across consulting, travel and electronics retail looked at how BTG Consulting, Jet2 and Currys are coping with higher costs and shifting demand, and why earnings resilience and cash returns matter to investors. We noted buy calls on BTG Consulting and Currys versus a hold on Jet2, alongside updates on profit performance and shareholder returns such as buybacks and dividends.

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