Bodycote puts its cash to work
Thursday 21 August 1997
Ongoing businesses contributed pounds 16m, an increase of 30 per cent, but last year's acquisitions made pounds 6m, recording impressive improvements in profits and margins within months of being snapped up.
Margins in most of the group's businesses lie between 20 per cent and 30 per cent thanks to a combination of tight cost control and pounds 120m of capital investment in new technology over the past eight years. The City has been wondering when the company will reach the limits of its growth.
But Bodycote has only just scratched the surface of potential markets according to John Chesworth, chief executive. The company is the biggest of its kind in the world but it has less than 5 per cent of the global market for sub-contracted work and much less of long-term contract work, which accounts for less than 15 per cent of its existing business.
The group is well spread between the UK, US, Scandinavia and western Europe and between the automotive, aerospace and power generating industries. The fact that Bodycote now has more than 100 operating units in 13 countries poses no problems over controlling the beast, Mr Chesworth claims. The company still has pounds 21m worth of cash from last year's rights issue, which could fund a sizeable acquisition.
Several brokers upgraded full-year forecasts yesterday from around pounds 48m to pounds 50m. Williams de Broe is looking for pounds 54.7m pre-tax. Bodycote's share price has doubled in the past year and rose a further 35p to 942.5p yesterday. However, a prospective rating of 20-21 times looks high enough for now.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial first week: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Malaysia Airlines plane: Oil slick is first sign that missing flight crashed into sea killing up to 239 on board
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 To those who can’t see the point of International Women’s Day: you are the very reason it exists
- 2 International Women's Day 2014: The shocking statistics that show why it is still so important
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Orgasm machine to deliver climax at the push of a button
- 5 Liam Neeson turned down James Bond role because late wife Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...