Bodycote PLC reported strong growth in annual revenue and profit reflecting good momentum in higher growth markets.
In the 12 months to December 31 the heat treatment and thermal processing services firm posted a 21% increase in revenue to £743.6mln while statutory operating profit improved to £102.0mln from £83.8mln in the previous year.
Basis earnings per share advanced to 38.6p from 31.2p in 2021 while a final dividend of 14.9p, made the total payout for the year 21.3p compared to 20.0p in 2021.
Broker Peel Hunt was impressed: "These results further reinforce our confidence in Bodycote as a must-have Industrial stock, with the mix shift generated by the growing Specialist technology and emerging market content."
The FTSE 250-listed firm reported revenue growth in Specialist Technologies of 14%, in Emerging Markets of 16% and Civil Aerospace of 19%.
These three areas plus electric vehicles now represent more than half of the group's revenue and 62% of headline operating profit, Bodycote said.
The firm said a key achievement in 2022 has been the recovery of energy cost increases through surcharges and the full recovery of other inflation through permanent price increases.
Chief Executive Stephen Harris said: “While there are near term macroeconomic uncertainties, we expect underlying volume to continue to grow ahead of the background markets, and margins are expected to expand as surcharges moderate.”
“Beyond 2023, we expect robust growth, leading to further margin expansion.”