City round-up: Bodycote; AstraZeneca

Stephen Harris

Bodycote, the Macclesfield-based provider of heat treatment and specialist thermal processing services, reported a strong first half of trading today, and forecast an even better second half.

Results for the six months to June 30, 2002, showed revenues rose 14.6% to £358.5m, and pre-tax profits improved from £40.5m the previous year, to £41.6m.

Net debt reduced from £69.6m to £57.5m, while the interim dividend was increased from 6.2p to 6.4p per share. Net cash, from operating activites, stands at £61m, compared with £78.2m last year.

Chief executive, Stephen Harris, said: “The group performed well in the first half. Revenues were up 14.6%, benefiting from price increases and energy surcharges which we have successfully passed on to our customers in response to the cost inflation we have experienced.

“We have produced strong revenue growth in the majority of our markets with Civil Aerospace revenues up 30%, General Industrial revenues up 19% and Emerging Markets revenues up 22%. Automotive revenues declined four per cent, although the significant daily demand volatility that we saw in April and May is now stabilising and we have managed to contain the impact on operating efficiency to modest proportions.

“The price increases implemented across the business, along with the decisive management actions we have taken over the past two years, including the £30m annualised cost savings achieved from the 2020 restructuring programme, position us well to adapt to changes in market conditions. Our strong balance sheet also allows us to take advantage of opportunities as they arise.

“While there are obvious geopolitical uncertainties, as matters stand today, we see the prospect of volume growth in each of our key market sectors and geographies and we anticipate making progress in the second half.”

He added: “I am happy to confirm that in line with our announcement last year we have now submitted emission reduction targets to the Science Based Targets initiative committing to a 28% reduction in absolute emissions by 2030.”

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Astrazeneca’s Speke site

Phamaceutical giant, AstraZeneca, enjoyed a 48% boost to interim revenues of $22.161bn. However, pre-tax profits slumped from $2.372bn last year to $800m.

The group, which employs around 4,700 people in the North West on sites at Macclesfield and Alderley Park in Cheshire and Speke on Merseyside, updated its revenue forecast for the year, saying it expects an increase in the low twenties percentage, up from the high teens previously.

Chief executive, Pascal Soriot, said: “AstraZeneca had a strong financial first half of 2022, and great pipeline delivery. We announced practice-changing data for several medicines including Enhertu in breast cancer, Farxiga in heart failure and Ultomiris in neuromyelitis optica spectrum disorder.

“We have made great progress in our efforts to combat COVID-19. Vaxzevria is estimated to have saved more than six million lives during the first year of roll-out, and Evusheld has protected hundreds of thousands of immunocompromised people, enabling them to return to a more normal life. Evusheld continues to demonstrate activity against new variants.

“Given the ongoing performance of our underlying business and the contribution of our COVID-19 medicines, we are updating our revenue guidance for 2022. This has enabled us to increase our R&D investment in the exciting number of pipeline opportunities that can benefit patients and drive long term sustainable growth for our company. We look forward to announcing the results of several important late-stage trials this year and next.”

The group also announced today that Michel Demaré is the chair-designate of the board.

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