Bodycote plc issued a trading update covering the period from January 1 to April 30, 2017, ahead of the company’s 64th Annual General Meeting. Group revenue for the four months ended 30 April 2017 was reported to be £227 million, 18% higher than the same period last year, 7.1% higher at constant exchange rates. Like-for-like revenues were higher by 3.9%.
The company’s Aerospace, Defence & Energy revenues, which include the company’s HIP and surface technology businesses, were higher by 10.8% (0.6% at constant exchange rates). Automotive & General Industrial business revenues, incorporating speciality stainless steel processes, increased by 23.2% (11.8% at constant exchange rates).
Based on a like-for-like basis and at constant exchange rates, the company’s main markets reported overall positive results. Civil aviation revenues were said to be higher by 3.8% year-on-year, with good growth in Western Europe. However, weak revenues from the Defence sector and lower revenues from the Oil and Gas sector (where sales were still declining in the comparative period in 2016) substantially offset this growth.
Car and light truck revenues increased by 7.9%, with strong growth in Europe and emerging markets. Meanwhile, heavy truck and bus revenues have yet to rebound and showed a small decrease in revenues in the period. General industrial revenues were 7.6% higher, the first positive growth Bodycote has seen in this segment for nearly three years. This recovery is predominantly being experienced in Europe, with limited North American growth so far.
Bodycote added that its performance in the first four months of the year has been robust and in line with the Board’s expectations. Accordingly, the Group’s outlook for the year as a whole remains unchanged.