Favourable forex pushes Bodycote revenues higher

18th Nov 2016 07:25

(ShareCast News) - Bodycote issued a trading update for the period from 1 July to 31 October on Friday, with group revenue 12.7% higher than the same period last year and 3.1% lower at constant exchange rates, against somewhat weak comparables.The FTSE 250 company said several new sites were acquired in the period with annualised sales of £14m, though the contribution to full year 2016 EPS from the new businesses will be minimal while they are integrated into the Group.Revenues were 13.2% higher - but 2.7% lower at constant exchange rates - after excluding revenues accrued in the same period last year in businesses subsequently sold or closed, most notably the group's former operations in Brazil.Aerospace, defence and energy revenues were 10.0% higher, or 4.2% lower at constant exchange rates, and automotive and general Industrial revenues were 14.7% higher, or 2.2% lower at constant exchange rates.Net debt as at 31 October was £12.1m, compared to net debt of £5.5m at 30 June 2016, which the board said reflected expenditure on the acquisitions and the usual seasonal cash flow pattern.The company's interim dividend for 2016 of 5.0p per share was paid on 4 November 2016, at a total cost of £9.5m."[Our] guidance for full year 2016 headline operating profit remains unchanged from the time of the interim results," Bodycote's board said in a statement."Market conditions remain challenging and, while noting the group's short forward visibility, the board does not anticipate any near term changes in demand patterns in any of the major market sectors that the group serves."However, the quality of our portfolio and a strong financial position places the Group well to take advantage of any opportunities that arise."