Engineering firm waiting to feel the benefit of £14m increase in sales

MANCHESTER engineering company Bodycote says its group revenue has been boosted by recent acquisitions, but it would take time for the company to feel the benefit of the resulting £14m increase in sales.

Turnover for the four months to October 31 is 12.7% up year on year, but 3.1% lower at constant exchange rates (CER).

Several new sites with annualised sales of £14m were acquired by the listed group but the company said their contributions to the full year earnings per share would be minimal as they are integrated into the business.

Aerospace, defence and energy revenues were 10% higher (4.2% lower at CER) and automotive and general industrial revenues were 14.7% higher (2.2% lower at CER).

Net debt at the period end was £12.1m, compared to net debt of £5.5m at June 30, reflecting expenditure on the acquisitions and the usual seasonal cash flow pattern.
 
The interim dividend for 2016 of 5.0p per share was paid on November 4, at a total cost of £9.5m.

A statement said: “Market conditions remain challenging and, while noting the group’s short forward visibility, the board does not anticipate any near term changes in demand patterns in any of the major market sectors that the group serves.

“However, the quality of our portfolio and a strong financial position places the group well to take advantage of any opportunities that arise.”