Low oil price hit Bodycote profits

Macclesfield-based Bodycote saw its profits and revenues dip in 2015 as takings in the oil and gas market plummeted.

The firm, which provides heat treatment services, reported a pre-tax profit of £99.2m in the 12 months to December 31, a year-on-year drop of 8% or £8.6m.

The company’s operating profit for the year (at £102.1m) fell by 8.1%, against 2014’s figure, with total revenues down by 6.9% at £567.2m

Although revenues in the civil aerospace sector remained buoyant, increasing by 1%, Bodycote’s earnings in the power generation sector fell year on year by 9% and in oil and gas by 28% due to falling crude oil prices.

Stephen Harris, Bodycote’s group chief executive, said he believes the firm delivered an overall resilient performance in 2015.

He commented: “The speed and effectiveness of management’s actions, in addition to the continued focus on improved mix, enabled headline operating margins to be sustained.

“The group will continue to follow its strategy of investing in areas of robust revenue opportunity, notably in specialist technologies and in higher growth territories, as well as further enriching the mix towards higher added value services.”

Mr Harris added: “The Board is confident that management’s continued focus on business improvements will generate good returns throughout the cycle.”