In a bid to reduce its exposure to the internal combustion engine, Bodycote (BOY) has launched a £30m restructuring plan that will see the group reposition its classical heat treatment wing in Western Europe and focus the group on supporting electric car production. Bodycote’s automotive revenues fell 8 per cent last year, and the group’s initiative is borne out of its recognition of long-term, structural changes to the industry.
The group did not award a special dividend in respect of last year - for the first time in three years - owing to its agreed £154m acquisition of Ellison Surface Technologies, which the company hopes will make it a key player in aerospace surface technologies.
This acquisition along with £61m investment in capacity and two smaller bolt-on acquisitions took Bodycote’s total outlay above £200m, which is about as much as it has spent in aggregate on acquisitions and capital expenditure in the past four years. Bodycote swung into a net debt position in 2019.
Credit Suisse forecasts full-year 2020 adjusted pre-tax profits and earnings per share of £128m and 50.8p respectively, rising to £143m and 56.1p in 2021.
BODYCOTE (BOY) | ||||
| ORD PRICE: | 522p | MARKET VALUE: | £ 999m | |
| TOUCH: | 522-524p | 12-MONTH HIGH: | 975p | LOW: 522p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 368p* | NET DEBT: | 20%** | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015† | 567 | 75 | 29.6 | 15.1 |
| 2016 | 601 | 92 | 35.2 | 15.8 |
| 2017† | 690 | 117 | 51.0 | 17.4 |
| 2018† | 729 | 132 | 54.2 | 19.0 |
| 2019 | 720 | 124 | 49.4 | 20.0 |
| % change | -1 | -6 | -9 | +5 |
| Ex-div: | 23 Apr | |||
| Payment: | 05 Jun | |||
| *Includes intangible assets of £212m, or 111p a share. **Includes lease liabilities of £79.4m †Excludes special dividends of 10p in 2015, 25p in 2017 and 20p in 2018. | ||||
