Bodycote revenues dip but outlook brightening

Bodycote reported a dip in revenue on Thursday as its aerospace & defence business proved a drag, but said it was beginning to see an improvement in most of its key markets.

In an update for the four months to 30 April, the supplier of heat treatments and metal joining said revenue fell 2% at constant currency and 4% at actual rates to £208m as its two businesses experienced contrasting trading conditions. The company’s Automotive & General Industrial (AGI) business saw revenues grow 5% from the same period a year ago to £128m, but Aerospace, Defence & Energy (ADE) revenues declined 16% to £80m.

Bodycote said automotive revenues have recovered strongly across all geographies, up 19% in the period. "Indeed, we even registered growth in January and February which in the prior year were barely impacted by the pandemic," it said.

General industrial revenues ticked up 1%, meanwhile, with revenue levels continuing to improve quarter by quarter as industrial production recovers.

In aerospace & defence, revenues fell 19% as the civil aerospace business remains subdued.

"We are seeing improvement in revenue trends across most of our key markets and the group is benefiting from last year's restructuring," Bodycote said. "We are, therefore, cautiously optimistic as we look forward to the remainder of this year."