27th Feb 2014 11:19
LONDON (Alliance News) - Thermal processing company Bodycote PLC Thursday reported an increase in profit and revenue for 2013, boosted by acquisitions in the face of mixed market conditions.
It said a key element of its success was its ability to maintain price increases at or above cost inflation, with 2013 price increases some GBP1.6 million greater than cost increases.
The Cheshire-based company, which supplies heat treatment to alter the microstructure of materials such as metals and alloys, posted pretax profit of GBP98.4 million for calendar 2013, up from GBP90.0 million a year earlier.
Group revenue rose to GBP619.6 million from GBP587.8 million in 2012, an increase of 5.4%. Acquisitions contributed growth of 5.5%, with organic revenues down 2.5% and foreign exchange rate movements having a positive impact of 2.4%.
Bodycote said it felt the full affect of 2012 acquisitions, including Carolina Commercial Heat Treating, bought for GBP41.4 million, and heat treatment business Curtiss-Wright Corp, bought for GBP32.4 million.
Bodycote said group margins improved to 17.3% from 16.6% in 2012, with Aerospace, Defence & Energy margins rising to 27.0% from 26.8%, and Automotive & General Industrial margins at 14.7%, widened from 13.4%.
"These margin improvements are largely down to the continuing drive towards a better mix of business, notably from increased revenues generated in S3P and HIP Product Fabrication, and strong cost management," it said.
The firm declared a final dividend of 9.1 pence, up from 8.3 pence a year earlier, bringing the total dividend to 13.5 pence per share, up from 12.3 pence in 2012. It has also recommended a supplemental distribution, by way of a special dividend, amounting to 10.0 pence per share.
The stock was trading at 724.60 pence Thursday morning, up 28.60 pence or 4.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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