Bodycote plc (LON:BOY) shares shot higher after saying it expects full year profit to be towards the upper end of market forecasts following strong revenue growth in the first half.
The metal treating specialist reported revenue of £345.7mln in the six months to 30 June, up 18.8% on a reported basis or 8.3% at constant currencies.
Chief executive Stephen Harris said the growth was driven by a recovery in its general industrial business, which accounts for 40% of total revenue. The general industrial business returned to growth after three years of declines.
Aerospace and automotive revenues also rose, offsetting a slump in the energy and oil and gas sectors.
Headline profit before tax gained 26% to £60.56mln. Improved profits, coupled with tight control of working capital, resulted in free cash flow rising to £42.1mln form £20.9mln.
The company had net cash of £17.7mln at the end of the first half, compared to net debt of £5.5mln last year.
Bodycote raised its interim dividend by 6.0% to 5.3p.
“The positive momentum achieved in the first half is expected to continue,” Harris said.
“While our business, by its nature, has limited forward visibility, the board now expects the full year result to be towards the upper end of market expectations*."
Company compiled analysts' estimates of full year headline operating profit range from £106.5mln to £118.9mln.
Headline operating profit in the first half came to £61.7mln, compared to £49.3mln last year.