27th May 2025 09:58
(Alliance News) - Bodycote PLC on Tuesday reported weaker revenue over the first four months of 2025, amid a "strong" comparative, and it predicted a full-year outcome in line with current market expectations.
The Macclesfield, England-based metal heating company said group revenue during the first four months of 2025 was GBP246 million, down 6% from the previous year on an organic basis. This reflected "a strong prior year comparator plus a 1% headwind from lower energy surcharges," Bodycote said.
"Supply chain conditions have improved in civil aerospace through the first four months, with a notable acceleration in March and April. Defence revenue has also seen continued growth, led by Western Europe. Conditions remain challenging in automotive and industrial markets, though we have seen a sequential improvement in activity levels. As disclosed at our full year 2024 results, energy revenue has been impacted by the end of oil & gas project work," it added.
The firm noted that it has "no direct exposure to cross-border tariffs" but is closely monitoring ongoing global trade discussions.
Bodycote expects full-year results in line with market guidance, citing a company-compiled consensus for GBP718 million in revenue and GBP121.5 million in headline operating profit. This would be down 5.2% from GBP757.1 million in revenue in 2024. It would represent a 5.8% headline operating profit decline from GBP129.0 million.
The company's net debt was GBP90.2 million at April 30, up from GBP68.3 million at December 31, which Bodycote attributed to a GBP30 million buyback programme started in January.
"We are progressing at pace with our optimise, perform and grow initiatives which will enhance the quality of the business and ensure we are well positioned for the future," the company added.
Bodycote shares rose 4.3% to 549.00 pence each on Tuesday morning in London.
By Holly Munks, Alliance News reporter
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