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Bodycote PLC said on Wednesday its business outlook remains positive despite material shortages in April, driven by supply difficulties in China, combined with cost inflation.
The Cheshire-based thermal processing services provider said its revenue during this period benefited from price increases and energy surcharges. However, it said there was a short-term hit to profitability as the price increases have lagged the impact of cost inflation.
In addition, high short-term volatility has eroded operational efficiency at our facilities.
The company noted: ‘This, together with volatility in demand driven by material shortages at customers, and the temporary shuttering of our plants in China, has more than offset the positive impact of the incremental restructuring benefits delivered.’
In the first four months of 2022, group revenue was £230 million, up 12% at constant currency and 11% at actual rates.
One of its businesses, AGI, had a revenue of £136 million. While the other business, ADE's revenue was £94 million.
Net debt as of April 30 stood at £56 million, reflecting strong underlying cash flows.
The company said trading in the first three months has been ‘in line with expectations’.
Looking ahead, Bodycote said it expects continued good performance in its general industrial business, and further growth in civil aerospace revenues.
Bodycote shares were down 0.2% at 633.50 pence on Wednesday morning each in London.
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