Hi, we've made some changes

FTSE 250 movers: Potential capital return boosts Bodycote

Related Companies

Related Indices

Related Sectors

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 30 Apr 2008

LONDON (ShareCast) - Hopes of a cash pay-out prompted demand for engineer Bodycote after it revealed it is to sell its Testing division and concentrate on its Thermal Processing activities.

“Should this initiative result in a sale of the Testing SBU (Strategic Business Unit), and generate substantial shareholder value, then at the time of seeking approval for the transaction the board will indicate how net proceeds might be utilised, including the potential for capital return,” said chairman, J A S Wallace.

The announcement accompanied an upbeat trading statement in which the company said organic sales growth is running at about 6% in the year to date, with operating margins and cash flow in line with management expectations.

Sales growth in 2008 is about 18% higher than the corresponding period of last year, with 5 percentage points of that growth due to new acquisitions and 7% as a result of favourable currency translation effects.

All of the group’s markets remain robust with the exception of the North American automotive market which, as expected, is exhibiting signs of softness. The automotive market in Europe remains resilient, however.

Demand in the key aerospace, power generation and oil & gas sectors remains buoyant and the group is seeing strong sales growth in Eastern Europe and the Middle East.

“The board is confident that the group will make further progress towards its performance objectives in the remainder of the year,” Wallace added.

Strong growth at the casino business was largely responsible for a 21% hike in first quarter revenues at PartyGaming, but it was not enough to prevent the shares going on a losing run.

Group revenue jumped to $128.9m in the first three months of the year, up from $106.2m in 2007 and 6% higher than the previous quarter, helped by 45% year-on-year revenue growth to $43.5m at Casino.

Poker revenue rose 13% to $80.7m, while sports betting revenue was 4% better at $4.7m, but total average gross daily revenue fell 1% in the 4 weeks ended 28 April to $1.75m.

The company said this reflects the start of the seasonally quiet period of the year, which has seen slightly weaker Poker, but a better than expected casino business.

“As we enter the seasonally quiet period of the year, the business is performing well and there are a number of exciting developments in prospect,” said boss Mitch Garber.

“Over the next few months we will open our licensed Italian business, introduce a number of new branded online slot machines, and launch a completely new product vertical.”

“We remain confident about the group's prospects for the full year,” he added.


FTSE 250 - Risers
Bodycote International (BOY) 242.00p +14.42%
Telecity Group (TCY) 232.50p +10.71%
Cattles (CTT) 239.50p +10.24%
Benfield Group (BFD) 267.25p +7.76%
Aegis Group (AGS) 126.00p +7.69%
Melrose Resources (MRS) 400.00p +7.67%
Brit Insurance Holding (BRE) 246.00p +7.07%
BBA Aviation (BBA) 156.25p +6.47%
Aberdeen Asset Management (ADN) 142.50p +5.75%
easyJet (EZJ) 309.00p +5.10%

FTSE 250 - Fallers
PartyGaming (PRTY) 24.50p -7.55%
Drax Group (DRX) 598.00p -4.47%
Mondi (MNDI) 402.50p -3.48%
William Hill (WMH) 388.00p -3.06%
Morgan Crucible (MGCR) 224.25p -2.50%
Ferrexpo (FXPO) 354.00p -2.48%
Euromoney Institutional Investor (ERM) 361.25p -2.23%
Keller Group (KLR) 675.00p -2.17%
Babcock International Group (BAB) 591.50p -1.74%
Randgold Resources (RRS) 2,271.00p -1.73%

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).