Bodycote (BOY) is an apt name for a company that applies treatments to metals and alloys to make them more resilient.
Tip style
Value
Risk rating
Medium
Timescale
Medium Term
Bull points
- Strong balance sheet
- Cash generation improving
- Attractive valuation
- Operational changes
Bear points
- Manufacturing activity still weak
- Margins well below previous highs
- Chief executive retiring
The Macclesfield-based group’s moniker was not dreamt up by an advertising agency, though. It actually dates back to the Bodycote family, which founded the company in 1923. It started life in the textiles game, but turned to metallurgy in the late 1970s under former chief executive Joe Dwek, who oversaw a 26-year transformation.