(Alliance News) - Bodycote PLC on Thursday said it expects its results for 2021 to be at the upper end of expectations following a strong first half performance.
Shares in Bodycote were up 3.3% to 913.00 pence each in London on Thursday morning.
Pretax profit for the six months ended June 30 was GBP40.5 million, swinging year-on-year from a loss of GBP3.8 million.
The Macclesfield, England-based pressing and coatings services provider posted revenue of GBP312.9 million, a rise of 2.0% from GBP306.7 million a year prior.
General Industrial revenues increased by 9% to GBP126.7 million for the period. The recovery was similar across all of its geographies and reflects the continued recovery in industrial production. Similar revenue trends are being seen across most of the major sub sectors, with the exception of Tooling, the firm said.
Bodycote declared an interim dividend of 6.2 pence, up 3.3% from 6.0 pence the prior year.
Implementation of its 2020 restructuring programme has remained on track. As a result, much of the eventual permanent cost savings have already been achieved. Overall, Bodycote expects to deliver 2022 savings of GBP30 million, with the expected benefit for 2021 remaining at GBP20 million.
Expectations for 2021's headline operating profit ranges from GBP91 million to GBP104 million.
"We expect growth to accelerate once short-term supply chain disruptions are eliminated in the Automotive and General Industrial markets and Civil Aerospace begins its upward climb, but none of these effects are expected to be material until 2022. However, the benefits of our 2020 restructuring programme continue to build. Given the developments in the first half and the anticipated second half performance, we now expect to deliver a result in the upper half of the range of expectations," Bodycote said.
By Amrit Sahota; newsroom@alliancenews.com
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Bodycote (BOY)