Bodycote plc Interim Results For The Six Months to 30 June 2021

Bodycote, the world’s largest commercial heat treater released their interim financial results for the first 6 month of 2021, a brief summary of which can be found below. The full report can be found at 2021 Interim Results (bodycote.com)

Highlights:

• Revenues up 5.9%4 to £312.9m (2.0% at actual rates)
• Headline Operating Profit up 35%4 to £48.7m
• Headline Operating Margin increased to 15.6% (2020: 12.3%); with AGI margins above 20% for the first time
• Free cash flow of £60m (124% free cash conversion)
• £78m net cash from operating activities
• Profits benefit strongly from restructuring and efficiency improvements, with gearing5 over 70%
• On track to deliver £20m net restructuring cost savings in 2021
• Specialist Technologies and Emerging Market strategies delivering strong outperformance against background markets
• Full year guidance raised

Commenting, Stephen Harris, Group Chief Executive said: “Bodycote’s headline operating margin, at 15.6%, has recovered strongly, boosted by good operational performance and net savings from the 2020 restructuring programme. AGI margins are above 20% for the first time, while ADE margins have also improved over the previous half year. Revenues in the Automotive and General Industrial market sectors have shown good recovery, even if end market performance has been held back by the global chip shortage and supply chain constraints more generally.

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