Bodycote reports fall in turnover but 8.5% hike in profits

Macclesfield-based engineering group Bodycote has seen its revenue fall by 1.3% in the half year to June 30 on a year on year basis.

In its interim results the firm revealed it had brought in £312.3m during the period (H1 2013: £316.5m).

But profit before tax was up by 8.5% to £52.6m (H1 2013: £48.5m).

Further positive news comes from its financial position. Bodycote revealed that at the end of June it was sitting on net cash of 5.5m. This compares to net debt of £27.1m a year earlier.

The firm blamed the decline in its revenue figure on adverse foreign exchange movements.

It said the new technologies of S3P (Specialty Stainless Steel Processes) and HIP PF (Hot Isostatic Pressing Product Fabrication) both performed strongly.

The firm said growth in the automotive segment continues its upward trajectory.

“Bodycote is increasingly becoming the preferred supplier of thermal processing services for many customers, particularly for car and light truck production,” it said.

Group chief executive Stephen Harris said:  “The group delivered a strong first half performance. Organic growth and margin improvement were affected by currency headwinds, which at current exchange rates will have a greater impact in the second half.

“Noting that the group has limited forward visibility, the board continues to expect further progress in 2014 on a constant currency basis.”