Bodycote shares slipped 3 per cent when it published its half-year results, but only because the good news was more than priced in after the heat-treatment specialist's bullish pre-close trading statement.
The figures confirmed the company's reputation for operational gearing. While revenue increased 8 per cent to £246m, the bottom line swung sharply into an operating profit of £22m after last year's £51m loss. Cost-cutting was responsible for nearly half the gain and volume increases in the automotive and industrial division the rest. Sales actually shrank in aerospace, defence and energy - mostly late-cycle businesses with an almost exclusive focus on developed markets - but the margin boost from the restructuring programme still pushed operating profits up 28 per cent to £15m.
When: 2/07/10
Price: 198p
Tip performance to date: -23%
