Bodycote boasts good start to the year
Listed heat treatment specialist Bodycote has enjoyed “a good start to the year” ahead of its AGM today.
The Macclesfield headquartered group reported revenue of £268m in the period (down on 2023’s £281m for the same period).
The business reported revenue growth in both commercial aerospace and defence sectors, but a varied picture across sub-sectors including continuing good growth in energy (+14.0%) offset by weakness in industrial machinery and related markets.
A £60m share buyback programme was announced in January, with the first £30m tranche commencing on 15 March 2024. In the period to 30 April 2024, 1.56m shares in total have been acquired for £10.8m.
Net debt (excluding lease liabilities) was £45.3m at 30 April 2024, compared with a net cash position of £12.6m at year-end 2023. This reflected the acquisition of Lake City for £52.2m, the capital deployed on the share buyback programme to date, and the Group’s typical cash flow seasonality, including bonuses paid in March 2024.
Jim Fairbairn
Jim Fairbairn, who will assume the position of Group CEO following the AGM, said: “Bodycote continues to demonstrate good growth against a mixed picture of end market dynamics and the group is well positioned for the remainder of 2024.
“During my induction since joining the business in March I have travelled extensively with members of our leadership team to get to know our operations, engage with employees, and understand the full range of processes we offer. I am struck by the energy and passion our teams have for our wide range of capabilities in metallurgy and by the focus and sense of responsibility we have for our customers.
“Over the coming weeks I will progress the review of our strategic and operational priorities, and look forward to sharing my early observations about the Company at our interim results presentation on July 30th.”
Fairbairn joined Bodycote in March directly from test & measurement specialist Megger Group.
