Bodycote PLC Trading Update (5861P)
30 May 2018 - 4:00PM
UK Regulatory
TIDMBOY
RNS Number : 5861P
Bodycote PLC
30 May 2018
30 May 2018
Bodycote plc
Trading Update
Bodycote, the world's leading provider of heat treatment and
specialist thermal processing services, is issuing a trading update
covering the four-month period from 1 January to 30 April 2018
("the period"), ahead of the Company's 65(th) Annual General
Meeting, which will be held at 12.00pm today.
Current trading
Group revenue for the four months ended 30 April 2018 was
GBP243m, 7% higher than the same period last year and 10% higher at
constant currency. On a divisional basis, ADE revenues were up 5%
to GBP94m (up 10% at constant currency), while AGI revenues were up
9% to GBP149m (up 10% at constant currency). Within the overall
Group result, Specialist Technologies' revenues grew 12% at
constant currency.
The following review of the Group's markets quotes all movements
based on growth against the same period in 2017, at constant
currency.
Car and light truck revenues grew 8%, with continued strong
growth in Emerging Markets and good growth in Western Europe, while
North American revenues were down slightly.
Civil aerospace revenues grew 4%, held back by restrained demand
in France stemming from capacity shortfalls in the aerospace
industry supply chains.
Overall growth of energy revenues was 24%, with continued strong
growth in onshore North American revenues, as well as early
indications of an upturn in Western Europe oil & gas revenues.
Large frame industrial gas turbine (IGT) revenues were down in
North America in line with the cut backs in IGT production
announced by the OEMs at the end of 2017. In Western Europe, the
IGT declines were more than offset by the increase in business from
the new Long Term Agreement with Doncasters.
General industrial revenues were 11% higher with good growth
across all geographies.
Margins have continued to improve although the profit
drop-through from incremental sales has been partially offset by
increased investment in business development.
Financial position
Net cash as at 30 April 2018 was GBP45m compared to GBP40m at 31
December 2017, reflecting continued strong underlying cash
generation in light of the typical working capital outflows in the
first few months of the year. The Board will pay a final dividend
of 12.1p per share and the special dividend of 25.0p per share on 1
June 2018, at a total cost of GBP71m.
Summary and Outlook
We have seen robust growth in the first four months of the year
in spite of the foreign currency headwind. At this early stage, and
notwithstanding the Group's limited visibility, the Board now
expects full year revenue to be higher than previously expected and
headline operating profit to be slightly ahead of current analysts'
consensus1.
Trading Update Conference Call
The Company will be hosting a conference call for analysts and
investors at 8.00am today (Wednesday 30 May 2018).
Participant's dial in number: +44 (0) 333 300 9260
Participants will be asked for names only, no PIN required
For further information, please contact:
Bodycote plc
Stephen Harris, Group Chief Executive
Dominique Yates, Chief Financial Officer
Fiona Lawrence, Head of Investor Relations
Tel No +44(0) 1625 505300
FTI Consulting
Richard Mountain
Susanne Yule
Tel No +44 (0) 2037271340
1 Company compiled consensus for headline operating profit is
GBP133.1 million with a range of
GBP124.5m - GBP140.0m
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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