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Bodycote PLC on Tuesday reported improving trading momentum across most of its end markets in the four months to October 31, although group revenue growth remained held back by ongoing plant closures under its restructuring programme. The Macclesfield, England-based metal heating company said core organic revenue rose 2.2% year-on-year in the period, an improvement on the first half, leaving year-to-date core sales down 1.4% compared with a 3.6% decline in the first six months. At group level, organic revenue edged up 0.3% as the company continued to wind down non-core sites as part of its multiyear Optimise programme. Year-to-date group revenue was 2.7% lower at £613 million, compared with a 4.6% drop at the half-year stage. Bodycote said Aerospace & Defence was the standout performer, delivering ‘strong’ and accelerating growth, helped by a ramp-up in work related to LEAP aircraft engines. Automotive and Industrial demand remained challenging but showed better year-on-year trends due to easier comparatives, Bodycote said. Oil & Gas remained a drag, with low upstream investment in the Middle East delaying the ramp-up of recent contract wins. The Specialist Technologies division saw organic revenue fall 1.8% in the period and remain 5.4% lower year-to-date, although Bodycote said momentum strengthened in September and October. In HIP Product Fabrication, several defence-related contracts won in the first half are expected to drive a higher level of deliveries in the fourth quarter. The Precision Heat Treatment division posted 4.1% organic revenue growth in the period, turning year-to-date performance positive at 0.6%. Industrial gas turbines and aerospace drove the gains, while automotive demand improved modestly. Bodycote said execution of its Optimise programme accelerated, including revenue transfers to core sites and progress on the planned sale of 10 French automotive and industrial locations. The company expects to have exited more than one-third of the remaining 20 non-core sites by year-end. Looking ahead, Bodycote reiterated that second-half operating profit will be higher than the first half and ‘broadly in line’ with the £62.2 million delivered in the second half of 2024. ‘Our focus remains on execution as well as delivering on our Optimise, Perform & Grow initiatives, which will create a higher-quality, more resilient and faster-growing Bodycote,’ the company said. Bodycote shares were 0.4% lower at 600.00 pence in London on Tuesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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