30th May 2024 16:29
(Alliance News) - Bodycote PLC on Thursday posted a slight revenue decline for the opening months of the year, but struck a confident tone as it looks ahead to the rest of 2024.
The Cheshire, England-based supplier of heat treatments and specialist thermal processing services said revenue fell 4.6% to GBP268 million in the first four months of 2024 from GBP281 million a year prior.
However, the company highlighted that when excluding surcharges and Lake City Heat Treating, whose USD66.5 million acquisition was completed in January, constant currency organic revenue growth was 2.7% year-on-year.
Thursday's trading statement was released ahead of the company's annual general meeting, with Jim Fairbairn becoming Bodycote's new chief executive officer after the meeting. He replaces Stephen Harris, who early this month became chair of London-based hardware and software for broadcasters, film studios and other content creation Videndum PLC.
Fairbairn said: "Bodycote continues to demonstrate good growth against a mixed picture of end market dynamics and the group is well positioned for the remainder of 2024."
The firm serves automotive, aerospace & defence, energy and general industrial markets. It was in aerospace & defence where Bodycote shone brightest in the first four months of the year, investment bank Jefferies said.
Jefferies said: "This is a solid, robust statement from Bodycote, in our view. The group continued to face some mixed markets, but A&D sales were particularly strong, which helped to drive organic constant currency/constant currency sales growth. The outlook commentary and reiterated FY guidance should be well-received by the Street, and we await more detailed 'initial thoughts' from new CEO Jim Fairbairn in [July's half-year results] as he works through his review of the group's strategic/operational priorities."
Bodycote shares were 1.2% higher at 741.00 pence each in London on Thursday afternoon.
By Eric Cunha, Alliance News news editor
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