Bodycote sales down as oil, gas industry downturn hits
Heat treatment firm Bodycote said full year pre-tax profits rose to £91.9m from £75m although sales fell as it felt the impact from the oil and gas industry downturn.
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Headline operating profits fell 2.4% to £99.6m as lower sales made an impact, although these were partially offset by the weaker pound, Bodycote said.
“Reported revenues for the group were up 6% to £600m. However, the significant weakness in the oil & gas market and the knock-on effect on general industrial demand continued to exert considerable downward pressure on group results,” it added.
Group revenue on a like-for-like basis was down 3.5%. Like-for-like sales to the energy markets were down 27%, Bodycote said.
"Excluding the impact of these falling energy revenues, the group had flat sales year on year. It should be noted that like-for-like revenues at the half year were down 6%. The improved performance for the full year was due to a notable pickup in activity in the fourth quarter.”
A final dividend of 10.8p a share was declared, making a total of 15.8p a share. Bodycote said it is not recommending a special dividend in the current year.
"The group delivered a robust performance in 2016 despite significant headwinds in some key business sectors,” Bodycote said.
“Our outlook is positive and we remain optimistic that we are well placed to take advantage of an upturn in our markets.”