Bodycote profits drop in H1 but full-year expectations backed
FTSE 250 supplier of heat treatments, Bodycote, posted a drop in first-half profit and revenue on Thursday amid "challenging" markets, but backed its full-year expectations.
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In the six months to the end of June, headline pre-tax profit fell 6% to £64.7m on revenue of £66.9m, also down 6% on the same period a year ago.
Basic headline earnings per share declined to 25.6p from 27.2p and the interim dividend was lifted by 5.3% to 6p a share.
The civil aviation business saw revenue growth of 21%, while the specialist technologies division saw 4% revenue growth.
Chief executive Stephen Harris said: "'Bodycote delivered a resilient set of results in the face of challenging automotive and general industrial markets. The strong performance in civil aviation is expected to continue and provides a solid footing for the second half. The return on sales, at 18.3%, demonstrates the ability of the group to adapt effectively to changes in business conditions.
"While trading conditions deteriorated in the second quarter, a number of areas of the group's business remain strong and comparatives in the second half become easier. The board's expectations for the full year remain unchanged."
At 0820 BST, the shares were up 1.9% at 769.50p.