Company sees revenues grow in face of tough foreign markets

Macclesfied firm Bodycote say revenues have grown by 7% in the first quarter of the year.

The firm, which provides heat treatment and specialist thermal processing services, issued a trading update ahead of its annual general meeting.

Bodycote said group revenue for the four months ended 30 April 2018 was £243m, 7% higher than the same period last year and 10% higher at constant currency.

Car and light truck revenues grew 8%, with continued strong growth in Emerging Markets and good growth in Western Europe, while North American revenues were down slightly.

Civil aerospace revenues grew 4%, held back by restrained demand in France stemming from shortfalls in the aerospace industry supply chains.

Overall growth of energy revenues was 24%, with continued strong growth in onshore North American revenues, as well as early indications of an upturn in Western Europe oil & gas revenues.

General industrial revenues were 11% higher with good growth across all area.

Net cash as at 30 April 2018 was £45m compared to £40m at 31 December 2017, reflecting continued strong underlying cash generation in light of the typical working capital outflows in the first few months of the year.

The board will pay a final dividend of 12.1p per share and the special dividend of 25p per share on 1 June 2018, at a total cost of £71m.

A statement from the firm said: “We have seen robust growth in the first four months of the year in spite of the foreign currency headwind.

“At this early stage, and notwithstanding the group’s limited visibility, the board now expects full year revenue to be higher than previously expected and headline operating profit to be slightly ahead of current analysts’ consensus.”