Bodycote expects full-year results to be 'marginally ahead' of consensus

Heat treatment specialist Bodycote turned in a strong set of first-half results in its Thursday morning statement and took the opportunity to raise expectations for its full-year results.

Spectris reported revenues for the six months to June 30 had increased 8.7% to £368m, while pre-tax profits jumped 15% to £67.2m. Earnings per share climbed 16% to 27.3p and, although free cash flow shrank to £39.4m from £42.1m, the interim dividend was lifted 8% to 5.7p per share.

The FTSE 250-listed group's automotive and general industrial grew 8.6%, with the automotive business continuing to perform ahead of the market with 9.4% revenue growth. Aerospace and defence revenues grew 3.6% to £82m, while energy revenues improved 20% to £31m.

Chief executive Stephen Harris said, "Robust growth has continued with double-digit revenue progression in Specialist Technologies, contract wins on automotive and aerospace programmes, and excellent growth across the emerging markets."

He said continued investment was being made in ongoing growth through capital expenditure and increased resources. So far in 2018, Bodycote has invested £16m, more than 50% of overall capex, to support the growth of the business adding new capacity into existing facilities and developing new facilities.

"While our business by its nature has limited forward visibility, at current exchange rates, the board expects that the full-year result will be marginally ahead of current consensus," Harris concluded.

As of 0920 BST, Bodycote shares had ticked up 0.58% to 1,032p.