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Bodycote PLC on Monday reported a swing to profit in 2021 and increased revenue on a strong recovery in general industrial markets and the completion of its restructuring programme that delivered significant cost savings.
For 2021, the Cheshire-based thermal processing services provider swung to a pretax profit of £77.5 million from a loss of £1.5 million in 2020. The result was helped as Bodycote booked no exceptional items in the year, versus a charge of £58.4 million in 2020.
Further, its completed restructuring programme delivered permanent cost savings of £20 million in 2021.
The swing to profit was also supported by revenue growth of 7.1% to £615.8 million from £598.0 million the year before.
Bodycote credited this to a strong recovery in general industrial markets. Revenue rose 14% to £254 million in this market sector. Meanwhile. revenue in the automotive sector grew 9% to £168 million in 2021.
Bodycote declared a final dividend of 13.8 pence, bringing the total payout to 20.0p. This reflects a 3.1% increase from 19.4p paid out in 2020.
Bodycote noted that it has no direct exposure to Russia, Belarus or Ukraine. ‘At this stage, it is too early to predict the broader potential impacts on the group but we continue to monitor the situation closely and will take any necessary actions warranted by unfolding events,’ the firm stated.
The thermal processing services provider said that its General Industrial segment continued to perform ‘strongly’ during the year, while growth in its Civil Aerospace sector accelerated. The firm noted supply chain disruption in its Automotive business but said ‘signs of improvements are evident.’
‘We saw good progress in 2021, with margins increasing to 15%, as Bodycote benefited from strong recovery in general industrial markets and completion of the restructuring programme. The results also highlight the progress we are making in our strategic focus areas,’ said Chief Executive Stephen Harris.
‘In summary, the board expects further progress in 2022, but remains mindful of the current geopolitical and macro-economic landscape.’
Bodycote shares were trading 1.2% higher in London on Monday morning at 668.00 pence each.
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