Bodycote increases its 2016 full year dividend by 4.6%

DividendMax Ltd.

Bodycote increases its 2016 full year dividend by 4.6%


Robust performance; excluding energy, revenues at constant exchange rates were flat, with momentum building throughout the year

Total Group like-for-like revenues down 3.5%

Headline operating margin resilient at 16.6%

Headline operating cash conversion at 92%; £61m free cash flow

Investment for future growth continued; Specialist Technologies now generates 42% of profit

Five plants acquired for consideration of £30m; £20m annualised revenue at average Group margins

Full year dividend 15.8p, up 4.6%

Commenting, Stephen Harris, Group Chief Executive said:

"The Group delivered a robust performance in 2016 despite significant headwinds in some key business sectors. The speed and effectiveness of management's actions, in addition to the continued focus on improved mix, resulted in resilient margins.

While our business, by its nature, has limited forward visibility, we continue to demonstrate that we are capable of adapting with great agility to changes in market conditions. Our outlook is positive and we remain optimistic that we are well placed to take advantage of an upturn in our markets.

The Board is confident that management's continued focus on business improvements and execution of the Group strategy will generate good returns through the cycle."

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