Good start to the year; full year outlook maintained
Bodycote, the world's leading provider of heat treatment and specialist thermal processing services, issues a trading update covering the four-month period from 1 January to
Trading Summary
We have enjoyed a good start to the year with constant currency revenue growth of 3.9% excluding surcharges (2.7% excluding
Constant currency organic revenue growthJan 1 - Apr 30 2024 Group (excluding surcharges) 2.7% Group (including surcharges) -2.2% By process (excl. surcharges): Specialist Technologies 10.5% Classical Heat Treatment -1.0% By market sector (excl. surcharges): Aerospace & Defence 16.2% Automotive -1.8%General Industrial (incl. Energy) -1.8%
Group revenue was £268m in the period (2023: £281m), with underlying growth offset by surcharges which halved to around £14m as energy prices fell, and a foreign exchange headwind of £10m year-on-year. Organic constant currency growth of 2.7% (excluding surcharges) was driven by Specialist Technologies (+10.5%), while Classical Heat Treatment revenue was marginally lower (-1.0%). Within Specialist Technologies there was notable strength in Surface Technology and Hot Isostatic Pressing (HIP), which captured growth opportunities while delivering strong operational performance.
By end market, on an organic constant currency basis, strength in Aerospace & Defence continued (revenue +16.2% excluding surcharges), with both commercial aerospace and defence sectors growing well. Automotive revenue was slightly lower (-1.8%) reflecting a subdued market environment and the high growth in the corresponding prior year period.
Share buyback programme
A £60m share buyback programme was announced in January, with the first £30m tranche commencing on
Financial position
Net debt (excluding lease liabilities) was £45.3m at
Summary and outlook
Trading year-to-date reflects the strength of Specialist Technologies and the benefits of our diversified end-markets. The performance supports our expectation of further progress in 2024, including another step towards our medium-term operating margin target of more than 20%.
Update from
"Bodycote continues to demonstrate good growth against a mixed picture of end market dynamics and the Group is well positioned for the remainder of 2024.
During my induction since joining the business in March I have travelled extensively with members of our leadership team to get to know our operations, engage with employees, and understand the full range of processes we offer. I am struck by the energy and passion our teams have for our wide range of capabilities in metallurgy and by the focus and sense of responsibility we have for our customers.
Over the coming weeks I will progress the review of our strategic and operational priorities, and look forward to sharing my early observations about the Company at our interim results presentation on
Trading Update Conference Call
The Company will be hosting a conference call for analysts and investors at
Participants' dial-in number:
Participants will be asked for names only; no PIN will be required
For further information, please contact:
Tel: +44 1625 505 300
FTI Consulting
Tel: +44 203 727 1340
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