StockMarketWire.com - Heat treatment and specialist thermal processing firm Bodycote has announced full year results will hit expectations.

Group revenue was up 1% at £245m in the first four months of 2019, though flat at constant currency.

Specialist Technologies revenue was up 3% at constant currency and its Emerging Markets' revenue advanced 6%.

Aerospace and defence revenue was up 15% while automotive revenue fell 4%, hit by lower production volumes in the industry.

General industrial revenue was 6% lower on weakness in developed markets on discontinued business and hesitation in capital investment decisions.

Energy revenue was flat. Net cash was down modestly year-on-year from £31m to £36m and the company confirmed plans to pay a final dividend of 13.3p per share and a special dividend of 20p per share on 7 June at a total cost of £64m.

In note 30 of its last reports and accounts, Bodycote reported on a state aid investigation being conducted by the European Commission. The note highlighted a maximum potential liability of £20m in relation to this investigation.

On April 25, the European Commission released its decision that certain tax exemptions offered by the UK authorities constituted State Aid and, as such, will need to be recovered. Bodycote is working with its tax advisers to understand the implications of this and determine what, if any, exceptional charge may need to be booked.

Bodycote adds: 'The full year outlook for civil aerospace remains strong, and revenue growth for Specialist Technologies' is also expected to be good.

'With easing comparatives in automotive in the second half of the year, and provided current macroeconomic conditions do not deteriorate, year on year growth should strengthen.'




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