Bodycote Group (LSE:BOY) shares jumped 12.5% after the company maintained its full-year outlook despite a tough trading environment.
The engineering group reported that revenue for the first half fell 7.5% to £369 million, while adjusted operating profit slipped 17.5% to £55.1 million, as weakness in automotive and industrial markets continued to weigh on results.
Nevertheless, management pointed to steady momentum in key areas such as aerospace, defence, and industrial gas turbines, and said trading was in line with expectations.
Bodycote also kept its interim dividend unchanged at 6.9p per share and announced a further £30 million share buyback, enabled by its strong balance sheet.
The company highlighted progress on its Optimise, Perform & Grow strategy, with cost savings expected to deliver a greater profit benefit at a lower cost than previously forecast.
Looking ahead, it anticipates stronger profits in the second half, helped by ongoing efficiency improvements and a gradual recovery in specialist technologies and aerospace markets.
The group remains confident in its medium-term targets, despite ongoing macroeconomic uncertainty.
The shares rose 71.53p to 644.02p.