Bodycote PLC

BOY

Equity

ISIN GB00B3FLWH99 / Valor 4859074

LSE London Stock Exchange, SETS (2024-12-24)

GBP 6.28+0.16%

Bodycote PLC
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About company

Bodycote PLC is the world's largest provider of heat treatment and thermal processing services, specializing in Hot Isostatic Pressing (HIP) technology to eliminate porosity in castings and consolidate powders. With the largest operational capacity in the Western world, Bodycote offers a wide range of services to accommodate both small products and large components economically. The company's heat treatment processes alter the microstructure of materials like metals and alloys, while their specialized coatings protect components from environmental factors like corrosion and abrasion. Bodycote's extensive list of accreditations and proprietary technologies demonstrate their commitment to providing high-quality, reliable services to clients across various industries.

Summarized from source with an LLMView SourceSector: Industrials

Revenue Growth

Bodycote PLC reported an 8% increase in group revenue for the full year ending 31 December 2023, reaching £802.5 million. Excluding energy-related surcharges, the revenue growth was 6% at constant currency. This growth was driven by significant progress in the Group’s strategic focus areas, despite a mixed end market picture, particularly in the second half of the year.

Operating Profit

Headline operating profit for Bodycote PLC increased by 14% to £127.6 million in 2023, up from £112.2 million in 2022. At constant currency, this represents a 17% increase. The headline operating margin improved to 15.9%, up from 15.1% in the previous year. Adjusting for the revenue impact of energy surcharges, the headline operating margin increased by 120 basis points to 17.3%.

Earnings Per Share

Bodycote PLC's basic headline earnings per share increased by 13% to 48.4 pence in 2023, compared to 42.7 pence in 2022. Basic earnings per share rose by 17% to 45.1 pence, up from 38.6 pence in the previous year. This increase reflects the rise in statutory operating profit.

Free Cash Flow

The Group delivered a significant improvement in free cash flow, which increased by £39 million to £123 million in 2023, up from £84 million in 2022. This improvement was due to higher operating profit and better working capital control, particularly through improved receivables collection. The balance sheet further strengthened, with a closing net cash position excluding lease liabilities of £12.6 million, compared to £33.4 million net debt in 2022.

Dividend and Capital Allocation

Bodycote PLC increased its full-year dividend per share by 7% to 22.7 pence, continuing a 36-year track record of growing or maintaining the dividend. The total cash returned to shareholders through dividends in 2023 was £40.6 million. Additionally, the Group announced the completion of the acquisition of Lake City Heat Treating for £52 million and a £60 million share buyback programme commencing on 15 March 2024.

Summarized from source with an LLMView Source

Key figures

4.15%1Y

-25.9%3Y

-35.1%5Y

Performance

26.2%1Y

30.6%3Y

36.5%5Y

Volatility