26th Feb 2015 08:59
LONDON (Alliance News) - Bodycote PLC on Thursday hiked its payout to shareholders for 2014 after reporting a rise in pretax profit in spite of a fall in revenue, as the company improved its margins over the year.
The FTSE 250-listed company, which provides heat treatments, metal joining, hot isostatic pressing and coatings services, said its pretax profit for the year to December 31 was GBP103.7 million, up from GBP98.4 million a year ago.
Revenue fell by 1.7% to GBP609.1 million from GBP619.6 million but the group's profit was pushed higher by an improvement in its margins in the year to 18.2% from 17.3% last year. The headline revenue figure was pulled back by currency headwinds, with revenue rising 4% in constant currencies.
On the back of the profit increase, the group hiked its total dividend for the year to 14.4 pence per share from 13.5 pence per share and doubled its special dividend payout to 20 pence from 10 pence last year.
"The group delivered another good performance in 2014. Revenue, at constant exchange rates, was ahead 4% and we achieved further improvement in margin and return on capital employed, in addition to strong cash generation," said Stephen Harris, Chief Executive of Bodycote.
"As we begin 2015 a number of macro-economic uncertainties persist. Nevertheless, at this early stage in the year, the board believes that the strength of the group's Specialist Technologies and management's continued focus on business improvement, particularly in the Classical Heat Treatment business, should enable further progress in 2015," Harris added.
Shares in Bodycote were down 0.5% to 761.50 pence on Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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