Acquisitions bolster Bodycote’s figures

BODYCOTE, the Macclesfield-based engineering group operating in more than 190 locations in 26 countries, has reported a 10% rise in profits for the first half of the year, boosted by acquisitions made in 2012.

The company, which heat-treats jet engine turbine blades and other aircraft and car parts, said pre-tax profit rose to £48.5m for the six months to une 30 from £43.9m last year.

Revenue rose 5% to £316.5m, but would have fallen but for the contribution of newly-acquired businesses, which added 7% to group turnover, whilst organic revenues (in constant currencies) were lower by 4.5% (£13.5m) compared to the first half of 2012.

Chief executive Stephen Harris said: “The group delivered a good first half result, with last year’s acquisitions performing well. Improvements in mix and rigorous cost control outweighed softness in demand, resulting in increased margins.

“Looking forward, we expect a broadly similar outcome in the second half and therefore the board continues to expect modest progress for the year as a whole.

“The board remains confident that Bodycote’s strategy will continue to deliver good profits, cash and returns through the business cycle.”

The group raised its interim dividend 10% to 4.4p per share.