Bodycote revenues beat expectations, special dividend announced

Bodycote posted a 12% rise in full-year profit on Friday thanks to solid performances from its specialist technologies business, emerging markets and civil aviation, as it announced a special dividend.

In the year to the end of December 2018, headline pre-tax profit increased to £136.4m from £121.5m on revenue of £728.6m, up 5.6% from the previous year. Analysts had pencilled in revenues of £726.4m.

Meanwhile, basic headline earnings per share rose to 55.9p from 49.2p the year, topping consensus expectations of 53.3p.

The company's specialist technologies segment delivered revenue growth of 12%, while emerging markets saw 21% growth and revenues in the civil aviation business were up 8%.

Bodycote declared a full-year ordinary dividend of 19p a share, up 9%, and a special dividend of 20p.

Chief executive Stephen Harris said: "2018 has once again demonstrated the strength of Bodycote's strategy and business. We achieved double-digit growth in specialist technologies' revenues, an excellent performance in our emerging markets and robust growth in civil aviation revenues.

"Combined with pricing discipline in the face of significant cost pressures, the group was able to improve return on sales. Together with the revenue growth this delivered a healthy increase in headline earnings per share. Our performance is testament to the group's resilient operating model, with our focus on cashflow generation, operational efficiency and improving returns."

"While we are conscious of the global macro-economic backdrop, we have entered 2019 well positioned and at this early point in the year, our expectations for 2019 remain unchanged."