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Prices & Quotes - UK Markets - Bodycote (BOY)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 823.50p
Change Today:
-12.00p
Market Cap:
1,576.64m
Sector:
Industrial Metals & Mining

Bodycote permanently slashes costs amid Covid downturn

By Josh White

Date: Thursday 23 Jul 2020

LONDON (ShareCast) - (Sharecast News) - Bodycote said on Thursday that its first half was "significantly impacted" by the Covid-19 downturn, reporting a 16.6% fall in revenue at constant currency to 306.7m.
The FTSE 250 company said its headline operating profit plunged 43% to 37.8m, while its return on sales slid to 12.3% for the six months ended 30 June, from 18.3% a year earlier.

Its headline profit before tax was off 45% at constant currency to 35m, with the board also noting 32.1m of exceptional restructuring costs during the period.

Free cash flow was 56% lower than the first half of 2019 at 69.7m, with basic headline earnings per share 45% lower at 14.2p.

On a statutory basis, Bodycote swung to an operating loss of 1m, from a profit of 64.4m a year earlier, while basic losses per share came in at 1.3p, compared to earnings of 24.7p 12 months ago.

Bodycote said it implemented immediate cost saving initiatives at the outbreak of the pandemic, with its first half operational gearing at 42%.

It also "stepped up" its restructuring activities, yielding permanent future annualised cost savings of 58m.

The board described its free cash flow as "excellent" at 69.7m, while net debt stood at 23.6m pre IFRS16.

A 2019 deferred dividend of 13.3p would be paid in September, while a decision on a 2020 interim dividend would be made "in due course".

"Bodycote reacted swiftly to the sharp revenue declines arising from the pandemic related downturn," said group chief executive officer Stephen Harris.

"Most cost elements have been reduced in line with sales which has yielded a resilient operating margin of 12.3%.

"Moreover, the excellent free cash flow performance is testament to the cash generative nature of our business."

Harris said the organisational restructuring programme announced in March had been expanded and accelerated, and would permanently reduce operating expenses by around 10%, which would allow "good profits" to be achieved at lower volumes, and should enable margin expansion beyond historic levels when revenues return to normal.

"The immediate outlook varies by sector and is difficult to predict for obvious reasons.

"Bodycote benefits from its geographic and sector diversification, and its strong business model.

"We remain focused on strong cash and cost discipline and we expect to continue to generate sustainably attractive returns for our shareholders."

At 1024 BST, shares in Bodycote were up 0.92% at 603.5p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Bodycote Market Data

Currency UK Pounds
Price 823.50p
Change Today -12.00p
52 Week High 984.50p
52 Week Low 687.50p
Volume 127,382
Shares Issued 191.46m
Market Cap 1,576.64m
Beta 0.95

Performance Indicators

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What The Brokers Say

Strong Buy 5
Buy 0
Neutral 5
Sell 1
Strong Sell 1
Total 12
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Bodycote Dividends

  Latest Previous
  Interim Final
Ex-Div 07-Oct-21 22-Apr-21
Paid 05-Nov-21 04-Jun-21
Amount 6.20p 13.40p

Trades for 03-Dec-2021

Time Volume / Share Price
16:35 85,772 @ 823.50p
16:29 355 @ 821.00p
16:29 6 @ 821.00p
16:29 6 @ 821.00p
16:29 7 @ 821.00p

Bodycote Key Personnel

CEO Stephen C Harris
CFO Dominique Yates
Chair Anne Quinn