23rd Jul 2020 10:19
(Alliance News) - Bodycote PLC plunged into the red in the first half of 2020 as it said Thursday performance was "significantly impacted" by a pandemic-related downturn in demand but noted it has implemented measures to significantly cut costs.
Shares in the coating services firm were trading 0.8% higher at 603.00 pence each on Thursday morning in London.
For the six months to June 30, Bodycote posted a pretax loss of GBP3.8 million, a significant decline from the profit of GBP62.2 million recorded for the first half of 2019. This was on revenue of GBP306.7 million, down 16% from GBP366.5 million.
The Cheshire-based company said its performance deteriorated as a result of a reduction in demand from the third week of March, with second-quarter revenue on a like-for-like basis 33% below the year prior. An exceptional cost of GBP32.1 million was incurred in relation to its restructuring programme which is now expected to permanently reduce operating expenses by around 10%.
No interim dividend was declared, as Bodycote said it has decided to defer the decision regarding a payout for 2020. However, it said that it has now decided to pay a 2019 final dividend of 13.3p after that decision had been deferred back in April.
Looking ahead, Chief Executive Stephen Harris said: "The immediate outlook varies by sector and is difficult to predict for obvious reasons. Bodycote benefits from its geographic and sector diversification, and its strong business model. We remain focused on strong cash and cost discipline and we expect to continue to generate sustainably attractive returns for our shareholders."
As at the end of June, Bodycote had cash of GBP23.9 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Bodycote