Acquisitions boost Bodycote 2013 profits

27th Feb 2014 10:04

Full year pre-tax profits at engineer Bodycote rose nine per cent to 98.4m pounds, assisted by acquisitions made in 2012.Revenues were up 5% to £619.6m, although the company admitted that this had been helped by a positive contribution from foreign exchange rates worth £14m and a further £32.4m from the acquisitions.Organic revenues fell by £14.8m and the company said nearly all of its markets were weak in the first part of the year, but "many" strengthened as the year progressed.Overall margins rose to 17.3% from 16.6%.Free cash flow was down slightly to £78.8m from £81.2m and Chief Executive Stephen Harris said the group's priority for the use of cash is firstly to fund organic expansion followed by enhancement of the core dividend."Acquisitions form the third priority after these first two items. Supplemental distributions will only be made if cash generation exceeds the immediate needs of the and such a distribution can be undertaken without compromising the group's acquisition strategy or sacrificing its strong financial position," Harris said.Bodycote raised its ordinary share dividend to 13.5p from 12.3p. It will also pay a special dividend of 10p.Shares in the company were up 25p, or 3.59%, at 721p at 10.40.FP