Strong growth for Bodycote
ENGINEERING group Bodycote has reported strong sales through acquisitions and organic growth.
The Macclesfield-based firm, which specialises in heat treatment of metals for industrial use, saw sales grow 7.6% – after taking currency fluctuations into account – in the four months since July. Some 2.6% came from organic growth and 5% from acquisitions.
In October it bought Carolina Commercial Heat Treating (CCHT) from Bluewater Thermal Solutions in a £42m deal.
It was its second US acquisition in six months after buying the Curtiss-Wright Corporation’s heat treatment business in April. The latest deal saw it take control of six facilities.
Sales in aerospace, defence and energy were ahead by 15.9% at constant exchange rates. In Western Europe sales were up 14.2% during the period, and this was purely organic growth. In the US revenues grew 17.5%. More than half of the growth, or 10% came from acquisitions, while the remainder was organic.
Revenues from the commercial aerospace sector showed further growth and the defence sector remained stable. Bodycote said sales into oil and gas customers continued to improve but automotive and general industrial revenues were weaker, with a 1.8% increase. Emerging market revenues were weak in all territories.
Net borrowing at October 31 was £33.7m, compared to £16.7m at June 30, reflecting the trading performance, normal seasonal cashflows and the acquisition costs of Carolina Commercial Heat Treating.
“Although trading remains volatile, the sales momentum we have seen in October and early November offers support for the remainder of 2012 and consequently the board’s expectations for the year to December 31 are unchanged,” the company said.
