Bodycote piles on the profits

A restructuring programme and improved market conditions has paid off for Bodycote.

The company has revealed pre-tax profits of £60m for 2021, up from £800,000.

Reporting its full year results for the 12 months to end of December 2021, the group hailed a year of progress.

The heat treatment specialist, based on Tytherington Business Park, saw revenues climb 3% from £598m to £615.8m.

The group’s 2020 restructuring programme was also completed, with permanent cost savings of £20m delivered in 2021 and incremental £10m of permanent cost savings to come in 2022.

The group also announced a final dividend of 20p, up from 19.4p in 2020.

CEO Stephen Harris said: “We saw good progress in 2021, with margins increasing to 15.4%, 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.

“As we moved into 2022, General Industrial continued to perform strongly, and Civil Aerospace growth has accelerated.

“Bodycote’s Automotive business continued to be impacted by supply chain disruption for our customers, but signs of improvement are evident.

“And while we expect cost inflation to persist, we will continue to manage its impact on the business. In summary, the Board expects further progress in 2022, but remains mindful of the current geo-political and macro-economic landscape.”

He added: “Looking further ahead, the outlook for the business remains positive as we benefit from high profit drop through on revenue growth across all our market sectors.”