Bodycote profits grow in year of 'good progress'

Bodycote posted a 3% uptick in revenues to £615.8m, which, when coupled with a 2.8 percentage point increase to 15.4% in its headline operating margin, helped the group deliver a 26% increase to £94.8m in headline operating profits.

Basic headline earnings per share were up 29% at 35.8p and the group paid a final ordinary dividend of 13.8p per share, taking its full-year dividend from 19.4p in 2020 to 20.0p in 2021.

Free cash flow remained broadly flat year-on-year at £105.0m, while net debt, excluding lease liabilities, increased by £29.4m to £51.9m after the group paid the remaining deferred consideration of £57.8m for its acquisition of Ellison Technologies.

Bodycote added that it had completed its 2020 restructuring programme, delivering permanent cost savings of £20.0m in 2021, and said further incremental permanent cost savings of £10.0m would come in 2022.

Chief executive Stephen Harris said: "We saw good progress in 2021, with margins increasing to 15.4%, as Bodycote benefited from strong recovery in general industrial markets and completion of the restructuring programme. The results also highlight the progress we are making in our strategic focus areas.

"Looking further ahead, the outlook for the business remains positive as we benefit from high profit drop through on revenue growth across all our market sectors."