ENGINEERING group Bodycote, which has operations in Birmingham, Coventry and Wolverhampton, continued its revival today with half year profits more than doubling to £40.8m on revenue up 17% at £288.2m.
Chief executive Stephen Harris said that, while comparables for the second half were tougher than the first, Bodycote expected its full year headline operating profit to be “at the top of the range of analysts current forecasts”.
According to Bloomberg, the current expectation for full-year earnings is £73m, with a range from £63.2m to £77.9m.
The Macclesfield-based global group said it had also managed to slash its debts from £87.5m to £33.7m in the same period.
Reflecting on a strong performance – driven by a broad recovery in all its key markets including automotive, aerospace and heavy industry – Harris said: “Bodycote has continued to grow strongly in all markets, with new customer accounts, strategic initiatives and the general market recovery all contributing.
“Our low cost base and drive for operational excellence is evident in the high operational gearing – headline operating profits rose 92% on a 17% increase in revenues.”
Bodycote said its stronger financial position had allowed it to refinance two of its three revolving credit facilities, replacing £122m of facilities with a single new £125m five-year committed facility, on favourable terms.
The company said this and its existing £109m facility, gives it “ample liquidity” to deal with the capital requirements for organic expansion and acquisitions.
Bodycote said revenues in the aerospace, defence and energy business were up 20.6% in the first half to £115.9m.
In its automotive and general industrial business, they were up 15.1% to £172.3m.
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