Bodycote raises full year expectations after strong first half

Macclesfield specialist heat treatment group Bodycote said it has enjoyed a strong first half in its latest statement to the Stock Exchange today, prompting it to raise expectations for its full year results.

Announcing figures for the six months to June 30, it revealed an 8.7% increase in revenues of £368m, while pre-tax profits jumped from £58.2m to £67.2m.

The interim dividend of 5.7p per share is an 8% improvement on the same stage last year.

Chief executive Stephen Harris said today: “Bodycote has enjoyed a strong first half of 2018.

“Robust growth has continued with double-digit revenue progression in specialist technologies, contract wins on automotive and aerospace programmes, and excellent growth across the emerging markets.

“We continue to invest in the ongoing growth of the business through capital expenditure and increased resources.”

“While our business, by its nature, has limited forward visibility, at current exchange rates, the board expects that the full year result will be marginally ahead of current consensus.”

The group’s aerospace and defence revenues grew 3.6% to £82m; energy revenues grew 20% to £31m; the automotive business continues to perform ahead of the market, delivering 9.4% revenue growth to £110m; while general industrial revenues were 9% higher, growing to £145m.

Earlier this month the business announced the opening of a new facility in Rotherham, with a state-of-the-art plant to serve aerospace and power generation supply chains, in the Advanced Manufacturing Park in Rotherham.