22nd Mar 2019 15:28
(Bodycote issued correction, saying that its final dividend should have read 13.3 pence, not 13.2p. Full year dividend of 19.0p is unchanged.)
LONDON (Alliance News) - Metal processing firm Bodycote PLC declared another special dividend Friday after 2018 saw profit and revenue both grow strongly, and 2019 has started in line with expectations.
In 2018, pretax profit widened 13% to GBP132.2 million from GBP117.0 million the year prior. This was after revenue rose 5.6% to GBP728.6 million from GBP690.2 million the year before, up 6.7% at constant currency.
"2018 has once again demonstrated the strength of Bodycote's strategy and business," Bodycote Chief Executive Officer Stephen Harris said. "We achieved double-digit growth in Specialist Technologies' revenues, an excellent performance in our Emerging Markets and robust growth in civil aviation revenues."
Bodycote explained its Specialist Technologies unit saw revenue rise 12% on 2017, with Emerging Markets 21% higher. Civil Aviation unit revenue was also 8% higher in 2018 compared to 2017.
"Combined with pricing discipline in the face of significant cost pressures, the group was able to improve return on sales," Harris added. "Together with the revenue growth this delivered a healthy increase in headline earnings per share. Our performance is testament to the group's resilient operating model, with our focus on cashflow generation, operational efficiency and improving returns."
Bodycote proposed a 13.3p per share final dividend, up 9.1% from 12.1p the year prior. For the full year, the dividend rose 9.2% to 19.0p from 17.4p the year before.
The FTSE 250-listed firm also announced a 20p per share special dividend for 2018. In 2017, it had declared a 25p special dividend.
"While we are conscious of the global macro-economic backdrop, we have entered 2019 well positioned and at this early point in the year, our expectations for 2019 remain unchanged", Harris continued.
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