Tougher trading for Bodycote as performance stays strong
INTERNATIONAL thermal processing group Bodycote, which has operations in Birmingham, Coventry and Wolverhampton, has continued its strong performance in recent months, but has detected tougher trading conditions in some markets.
The Macclesfield-based group, whose technology is a key part of the manufacturing process in a number of major industries including aviation and automotive, said in a trading update that sales in the 10 months to the end of October were 15.1% ahead of last year.
The group, which has 170 facilities in 27 countries, said: “The trends seen in the first half of 2011 have broadly continued in the four months to October 31, 2011, although year-on-year comparatives have, as expected, been getting progressively more challenging throughout the second half of 2011.”
By sector, Bodycote said revenues from commercial aerospace had continued to improve at a steady rate.
The defence sector remains “stable”, while sales into oil and gas customers are strong, particularly in North America.
Industrial gas turbine revenues are seeing “only marginal improvement”, while in the automotive and general industrial sector, the rate of revenue growth in the car, light truck and heavy truck sectors has “slowed somewhat”.
Bodycote added: “Margins continue to be robust, reflecting the higher levels of sales, improving mix and the sustained benefit from the reduction in the group’s cost base.”
Net borrowing at October 31 was £14.2m, compared to £33.7m at June 30, reflecting the strong trading performance and normal seasonal cashflows.
Research clients, prospects and trends by searching TheBusinessDesk.com’s extensive story archive. Click here.
