Bodycote profits up but macro-economic uncertainties persisting

26th Feb 2015 08:49

Industrial materials engineer Bodycote saw its profits rise during its full year despite continuing macro-economic uncertainties.The group's profit before tax increased 5.4% to £103.7m during 2014, driving earnings per share up from 38.5p to 41.7p.However, revenues were down 1.7% to £609.1m. At current exchange rates though, revenue grew 4%.The board increased its dividend by 7% to 9.8p.The FTSE 250 company said its market share rose during the year due to improved operating efficiency in Europe.The power generation sector saw a softening demand during the year, with revenues dropping to 4% from 7% the year before.Chief executive Stephen Harris said: "As we begin 2015 a number of macro-economic uncertainties persist."Nevertheless, at this early stage in the year, the board believes that the strength of the group's specialist technologies and management's continued focus on business improvement, particularly in the classical heat treatment business, should enable further progress in 2015."N+1 Singer analysts said: "We remain positive on prospects for the group, as we expect continued strong growth from its higher margin specialist technologies and business improvement in classical heat treatment to offset slower demand elsewhere." The broker gave a 'buy' recommendation.Finncap analysts were more cautious, retaining their 'hold' recommendation due to the flagged uncertainties.Shares fell 0.59% to 760.5p on Thursday at 09:10.