Bodycote revenue drops but full year expectations maintained

Bodycote reported a drop in revenue between 1 January and 30 April, but reiterated its expectations for the year.

In a trading update ahead of the company’s annual general meeting, Bodycote said group revenue fell 4.9% from the same period last year to £192.4m, or 9.1% at constant exchange rates.

After taking into account the group's exit from Brazil and the restructuring actions announced in 2015, like-for-like revenues were down 2.7%, or 7% at constant exchange rates.

Bodycote said the restructuring programme announced at the time of the 2015 interim results is now essentially complete with the associated costs and benefits accruing in accordance with the guidance given at the full year results in February.

In the Aerospace, Defence & Energy business, revenues fell 6.7% on a like-for-like basis compared to the same period a year ago, or 11.1% at constant exchange rates.

Automotive & General Industrial business revenues, meanwhile, edged up 0.5%, but declined 3.8% at constant exchange rates.

As at 30 April, net cash stood at £9.4m compared to £12.3m at 31 December 2015, which Bodycote said was in line with its usual seasonal cash flow pattern.

“While noting the group's limited forward visibility, given the performance in the first four months of 2016, the board's expectation for results in 2016, at current exchange rates, is unchanged from the time of the 2015 annual results announcement in February.”