Bodycote Group (LSE:BOY) said its outlook remains positive despite material shortages in April as a result of supply problems in China and cost inflation.
According to the provider of thermal processing services, revenue during the four months from January 1 to April 30, 2022, benefited from price increases and energy surcharges, but profitability took a short-term hit as price increases lagged cost inflation.
In the first four months of 2022, group revenue was £230mln, up 12% at constant currency and 11% at actual rates.
One of its businesses, AGI, had a revenue of £136mln, up 5% on last year, while the other business, ADE's revenue was £94mln, 20% higher than last year.
The heat treatment provider said though it does not have any direct exposure to Russia or Ukraine, the war in Ukraine has also begun to impact operations.
"This, together with volatility in demand driven by material shortages at customers, and the temporary shuttering of our plants in China, has more than offset the positive impact of the incremental restructuring benefits delivered," the company said in a statement.
Net debt as of April 30 was £56mln, "reflecting strong underlying cash flows."
The company said its general industrial business performed well in the first three months, while its civil aerospace business grew strongly.
Bodycote shares were up 0.79% to 640.00p.