Resilient first half for heat treatment group Bodycote

Macclesfield heat treatment group, Bodycote, saw revenues and pre-tax profits decline in its first half period, but declared the six month performance a “resilient” one.

The group, which is a leading provider of heat treatment and specialist thermal processing services with more than 40,000 customers serviced by around 180 facilities around the world, recorded sales of £366.5m in the six months to June 30, compared with £368 a year ago.

Pre-tax profits of £62.2m have fallen from £67m in 2018.

However, the board has declared an interim dividend of 6p, compared with 5.7p, which represents an increase of 5.3% over the prior year.

Highlights throughout the year included 21% growth in its civil aviation revenues, a 4% increase in specialist technologies’ sales, and a 3% improvement in emerging markets, although Western Europe car and light trucks revenues fell 16%.

It also revealed that it had invested £38m to support the growth of the business, including two acquisitions.

Group chief executive Stephen Harris said: “Bodycote delivered a resilient set of results in the face of challenging automotive and general industrial markets.

“The strong performance in civil aviation is expected to continue and provides a solid footing for the second half.

“The return on sales, at 18.3%, demonstrates the ability of the group to adapt effectively to changes in business conditions.”

He added: “While trading conditions deteriorated in the second quarter, a number of areas of the group’s business remain strong and comparatives in the second half become easier.

“The board’s expectations for the full year remain unchanged.”