Bodycote's (BOY) long-standing strategy of gaining access to growing aerospace markets seems to have paid off for the heat-treatment specialist after operating profits grew by 14.4 per cent in 2012 to £98m, on sales of £588m, an underlying 3 per cent increase.
The aerospace, defence and energy business was the main driver of the results, particularly demand from aerospace companies in Europe. Sales growth in this segment was 11.5 per cent, with gross margins rising to 26.7 per cent (from 21.9 per cent in 2011). A tougher market for European auto companies was behind the 3 per cent revenue decline at the automotive and general industrial division, but tight cost control meant it achieved the same profit levels as last year. Meanwhile, the rise in aerospace also meant the company's return-on-capital reached a high of 19.5 per cent.
