|
Bodycote PLC on Wednesday maintained full-year guidance after reporting core revenue growth at the start of 2026 led by Specialist Technologies. The Macclesfield, England-based thermal processing firm reported core revenue growth of 9.0% at constant currency in the first four months of the year compared to a 5% decline in the same period a year ago. Growth was led by Specialist Technologies, with strong growth in Aerospace & Defence and Industrial Gas Turbines. Industrial Markets revenue was flat year-on-year in the period, with a good performance in Europe offset by weaker volumes in the US. Automotive revenue declined in the period, reflecting the reduction in global light vehicle production. Excluding the contribution from the Spectrum acquisition, which was completed in January, core revenue grew by 8.4% organically. Group revenue rose 1.9% at constant currency, compared to a 6% drop a year ago, with core growth offset by plant exits under its Optimise programme. Under Optimise, Bodycote expect to exit around 90% of the 31 non-core plants by the end of the year. At the end of April, 21 sites had been fully exited with a further 3 having ceased operations. Both execution costs and the level of revenue transfers to the core business are on plan. The FTSE 250-listing company continues to expect core organic revenue growth in 2026, moderating in the second half, improved operating margins and strategic progress. ‘We are mindful of ongoing geopolitical uncertainty and will continue to closely manage input costs and to focus on preserving agility in our cost base,’ Bodycote said. Shares in Bodycote rose 0.6% to 841.08 pence each in London on Wednesday. Last week, Bodycote said it received a conditional proposal from Apollo Management X LP. Under the proposal, shareholders would receive an offer price of 885 pence per share in cash and be entitled to receive the proposed dividend of 16.1 pence per share for 2025 without any reduction in the offer price. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
