Bodycote Group (LSE:BOY) PLC said it expects its full-year performance to meet market expectations after revenue grew strongly in the third quarter.
In the four months to 31 October 2022, group revenue totalled £258mln, a rise of 29% on last year, or up 22% on a constant currency basis, the heat treatment and thermal processing specialist said in a trading update.
AGI revenues climbed 21% at constant currencies to £148mln, while ADE revenues of £110mln were 24% higher.
The FTSE 250-listed company said revenues were boosted by price increases and energy surcharges, which were introduced at the end of last year to cover the highly volatile costs of electricity and gas.
The price rises and surcharges successfully covered all of its cost inflation in the period, it noted.
Automotive revenues were up 18% in the period, entirely due to the impact of price increases and energy surcharges, while volumes were flat despite easing supply chain problems.
General Industrial revenues grew 25%, with volumes continuing to hold up well, while Aerospace & Defence grew 19%, with civil air travel continuing to strengthen and OEM production ramping up. However, defence volumes were flat, the company said.
Revenues from emerging markets jumped 47%, reflecting the highest level of energy surcharges in the group, as well as double-digit volume recovery in China and Mexico.
Specialist Technologies revenues grew 22%, with solid volume growth, Bodycote said.
Net debt stood at £59mln at end-October, reflecting good underlying cash flows, but partially offset by higher working capital, which was directly related to the higher level of trade receivables from surcharge-fuelled higher revenues, the company said.