Bodycote, the Macclesfield-based heat treatment and thermal processing giant, said its 2024 revenue fell 5.7% to £757.1 million and statutory profit before tax plummeted 75% to £28.4 million.
Bodycote shares fell about 10%.
The firm said it returned about £100 million to shareholders in 2024 — via £40 million of dividends and £60 million of share buybacks. A further £30 million share buyback is underway.
Full year dividend rose 1.3% to 23p.
“Closing net debt was £131.8m (2023: £51.7m),” said Bodycote. “Excluding lease liabilities, the group moved from a net cash position of £12.6m in 2023 to a net debt of £68.3m in 2024 after returning £100.6m (2023: £40.6) to shareholders through dividends and share buybacks and after acquisition spend relating to Lake City Heat Treating of £54.9m (including acquisition costs).”
In its 2025 outlook, Bodycote said: “End markets remain mixed, with challenging conditions in Automotive and Industrial. Structural demand in Aerospace & Defence remains strong, although there continues to be a temporary impact from industry-wide supply chain disruption.
“Reflecting this backdrop, current run-rate profit performance is at a broadly similar level to H2 2024. We are successfully executing our Optimisation programme, which will deliver additional profit benefits as we move into H2 2025.
“Our continued focus on cost control and progressing our strategic actions is ensuring we are well positioned to capitalise when markets recover. We remain confident in the delivery of our medium-term financial targets.”
Jim Fairbairn, Group Chief Executive, said: “We delivered a resilient performance in 2024, with our core business growing organically pre-surcharges and good margin improvement despite challenging conditions in many of our end markets. This was driven by Specialist Technologies where we saw good growth and strong margin improvement, as well as decisive cost control actions taken in our Automotive and Industrial Precision Heat Treatment businesses.
“At our Capital Markets Event in December we laid out a simplified reporting structure, a new strategic approach, and a set of comprehensive financial targets. Going forwards our reporting will be based on two leading, technology-focused divisions: Specialist Technologies and Precision Heat Treatment. Our strategy consists of three key levers: Optimise, Perform and Grow.
“Through these levers we will enhance the quality of the business, improve our operational performance and accelerate growth, all supported by sustainability. Underpinned by these actions, we also announced a set of compelling medium-term financial targets.
“We have already begun to deliver on these strategic initiatives, including commencing with our plant footprint optimisation, rolling out the HEAT programme to initial pilot sites, and proceeding with initial growth investments aligned to our target areas. We are already seeing tangible early benefits from these actions.
“I believe there is a significant opportunity in front of us to reach Bodycote’s full potential and to deliver greater shareholder value. With a new strategy, simplified reporting structure, and ambitious but achievable targets in place our focus is now on execution.”