London-listed provider of heat-treatment and thermal-processing services, Bodycote, has exceeded profit and revenue expectations for the first half of 2023. The company also announced a higher interim dividend compared to the previous year.
Profit and Revenue Surpass Expectations
Bodycote has reported a significant increase in pretax profit for the first half of 2023, reaching £55.2 million ($71.4 million) compared to £41.6 million in the same period of 2022. The company's revenue also saw a substantial surge, rising to £420.1 million from £358.5 million in the prior year.
Driving Factors Behind Revenue Growth
The growth in revenue can be attributed to Bodycote's advancements in specialist technologies, expansion into emerging markets, and the success of its civil aerospace units. These efforts have contributed to a 24% increase in headline operating profit, which reached £62.8 million with an improved margin of 15.0%, up from 14.1%.
Positive Outlook for Future Growth
CEO Stephen Harris is optimistic about the company's future beyond 2023, stating that Bodycote's prospects for sustained profitable growth remain promising. The strong performance in the first half of the year, surpassing expectations, reflects broad-based growth across most of Bodycote's end markets.
Interim Dividend Increase
In addition to its impressive financial results, Bodycote announced an interim dividend of 6.7 pence per share, representing an increase from the previous year's interim dividend of 6.4 pence.