Bodycote PLC (LON: BOY) have seen their shares rally on Tuesday, after the firm reassured shareholders on strong second half trading figures.
Bodycote saw their shares rally 2.94% on Wednesday morning to 859p. 20/11/19 10:51BST.
Bodycote is a supplier of heat treatments, metal joining and hot isostatic pressing and coating services.
Bodycote said that its performance for the four moth period ending October 31, matched the first half.
Additionally, the FTSE250 (INDEXFTSE: MCX) listed firm gave full confidence for its annual results to be in line with both market and analyst expectations.
In the period from July 1 to October 31, Bodycote said it recorded £244.7 million in revenue, 1% higher than in the same period year before.
Revenue for the 10 months to the end of October was flat year on year, with Bodycote saying its performance showed a “marginally” improving trend on the first-half growth rate.
ADE revenue also increased 6% to £103.4 million, and was up 3% for the ten month period. ADI revenue fell 3% to £141.4 million in the four month period, and slumped 5% for the ten month period.
“Bodycote’s performance in the period reflected a continuation of the trends of the first half, with civil aerospace revenues growing strongly; and the automotive and general industrial market sectors remaining soft,” the company said.
The company added: “Cost control initiatives remain a priority, with a particular focus on the areas of our operations where we are seeing revenue weakness. Consequently, margins and underlying cash generation remain strong. Overall, Bodycote’s board is confident that the group’s full year result will be in line with current market expectations.”
Bodycote said its Specialist Technologies’ revenue grew by 6% in the period versus the year before, with Emerging Markets revenue growing 14%.
Civil aerospace revenue grew ahead of the background market, the company said. Total civil aerospace revenue grew 14%, with North American growth boosting the business.
The market has been volatile for Bodycote, and competitors such as Oerlikon (SWX: OERL) and Kennametal Inc (NYSE: KMT) have seen their shares fluctuate.
However, the confidence of Bodycote backed with the results should be enough to tease shareholder optimism.
