Bodycote on track for full year profit despite dip in revenue

17th Nov 2015 08:09

(ShareCast News) - Despite challenging market conditions and a dip in revenue over the last four months, Bodycote said it is on track to meet full-year profit expectations, sending the share price surging.The FTSE 250 thermal subcontract processing service provider issued a trading statement on Monday for July to October.The company said that group revenue for the four months was down 7.5% at constant exchange rates compared to the same period in 2014.However, foreign exchange meant that revenues were actually down 9.7% for the period.That was primarily driven lower by its aerospace, defence and energy division, where revenues were down 11.9% at constant exchange rates.Civil aviation revenues grew by 2.1% due to good growth in North America and France which offset by continued weakness in the UK.Car and light truck revenues also increased by 3.4%, with solid growth in Europe and emerging markets counteracting a flat performance in the USA.It also said it is accelerating its greenfield investment programme to increase capacity and capability, including new facilities in China and Mexico, as well as Europe and the US.Despite all of the above, Bodycote said it still expected headline operating profit for the financial year to be between £101m and £106m."While noting the Group's short forward visibility, the board currently anticipates that there will be no near term improvement in market conditions," the trading update said."However, the quality of our portfolio and strength of our financial position place us well to take advantage of any opportunities that arise."Shares in the company had surged on opening, up 63.4p (12.73%) to 561.50 at 0843 GMT.