Bodycote Share Discussion Threads

[littlemadam] 30/9/2008 14:52

Does anyone know what would be the effective holding date to qualify for the 80p per share payout?

[chris1604] 26/9/2008 09:55

Volvo

similar information received, but nothing will happen until after the disposal, although Sulzer are very keen on acquisition.

Added again

[volvo] 26/9/2008 09:24

Yes Sulzer is coming back in.It did not want the sold bit.From a senior employee but dont think they want to sell.

[hdb] 20/9/2008 09:17

Anyone picked up news on potential for another bid on the cards ?

Howard

[hdb] 15/9/2008 14:23

looks like US Market conditions playing it's part on BOY

Death by thousand cuts

Is there any good news

H

[thickasmince] 28/8/2008 17:37

And what about this share consolidation? Could be just getting value for the parts not performing wad.

[wad collector] 28/8/2008 11:06

Are we seeing the beginnings of an asset strip?

[sleveen] 28/8/2008 09:02

And a much better price than most city analysts were expecting (circa £300-350m)

Pity J H is going.

[milacs] 28/8/2008 08:37

Good news.

Returning 80p to shareholders.

M

[sleveen] 30/7/2008 06:36

audio webcast available @

www.bodycote.com/

[drectly] 30/7/2008 04:48

positive from the Independent

Bodycote

Our view: Buy

Share price: 203.25p (+3.25p)

Bodycote shareholders have every right to be pretty hacked off. Last year, the engineering group turned down a 342p-a-share bid from Sulzer, its Swiss rival, saying at the time that the approach "significantly undervalues" the company. Or not, as it turns out. The share price has got nowhere near the offer level in the last 12 months, and indeed, has fallen 25.6 per cent from year highs of 309.25p.

Hindsight is a wonderful thing, says the finance director, David Landless, who blames the wider market malaise on the way the stock has performed, and anyway, the shares are vastly undervalued, he argues.

As part of the efforts to satisfy shareholders that the management were right to send Sulzer packing the company has been looking at ways of streamlining itself, and the latest idea is to dispose of the materials testing division, which will be sold for about £400m in the next few months.

Analysts at ABN Amro say that the present, rather tepid, valuation of 9.4 times earnings does not take account of the sale, and that investors should buy, arguing that "assuming [there are] no change to forecasts, we feel this looks potentially very attractive". The remaining arm of the company, the heat processes division, was reported as performing well in the six months to 30 June, with sales up by 22 per cent.

Mr Landless concedes that other changes are also necessary, and says that the 11 per cent of revenues generated from emerging market business will have to improve. New investors should see Bodycote as an opportunity: yesterday's interim results were the best ever from the group, and there is still obvious room for improvement. Buy.

regards drectly

[drectly] 30/7/2008 04:42

FT

Bodycote margins offset revenues
By Stanley Pignal
Published: July 29 2008 23:59 | Last updated: July 29 2008 23:59
Weaker margins offset the benefit of increased revenues at Bodycote, the metals processing and testing specialist that is in the process of breaking itself up.

Revenue growth of 20 per cent, to £383m (£318m), for the first six months of the year, was matched by a slower rise in pre-tax profits, up 5 per cent to £44.7m (£42.6m).

EDITOR'S CHOICE
Bodycote test unit for sale - Apr-30

US retrenchment hurts Bodycote - Dec-19

Bodycote enjoys sales growth - Oct-25

Bodycote scans emerging markets and takeovers - Aug-01

Bodycote rejects latest Sulzer bid - Apr-18

Bodycote looks to expand in emerging markets - Feb-28

John Hubbard, chief executive, said he expected the company's full-year results would meet market expectations. "All our markets remain resilient, with the exception, as expected, of North American automotive."

Bodycote is the world's largest supplier of metal strengthening services. Its technology is used to heat-treat rotor blades in jet engines, providing them with added strength and durability.

Comparative profit figures were clouded by Bodycote's merger and acquisition advisory costs following a protracted defence against the advances of Sulzer, a Swiss rival, last year.

A further £600,000 was spent this year on preparations for the disposal of the testing business, which the company previously valued at about £400m, roughly two thirds of the group's total market capitalisation. A sale is expected by the end of the year.

A proposed interim dividend of 2.95p (2.75p) is to be paid from earnings per share of 10.3p (10.1p).

Shares in the company rose 3¼p to 203¼p.

[drectly] 08/5/2008 08:17

anyone seen anything reported to explain the welcome positive start ?
especially considering the States yesterday
regards drectly

[drectly] 01/5/2008 06:11

FT

Bodycote test unit for sale
By Stanley Pignal
Published: May 1 2008 03:00 | Last updated: May 1 2008 03:00
Bodycote plans to sell its food and materials testing business to focus on specialist thermal processing.

The shares rose 14.3 per cent on speculation that a trade or private equity buyer would attach a higher than current multiple to the unit, which represents a third of Bodycote's sales and profits.

Though analysts' expectation ranged from £250m to £350m, management hoped for offers in excess of £400m.

John Hubbard, chief executive, said: "We are looking at a business with prospective earnings before interest, tax, depreciation and amortisation of above £40m and companies in the sector have been going in the 10 to 12 times ebitda range".

British niche engineering companies have been courted aggressively, with Manitowoc acquiring Enodis, FKI selling out to Melrose and Expro receiving bids from private equity and trade buyers. A sale would leave Bodycote focused on metal heat-treatment technology.

The shares, up 30¼p to 241¾p, also benefited from a positive trading update. Sales in the first four months were up 18 per cent compared with 2007.

FT Comment

* It was just a year ago that shareholders scoffed at a 342p indicative offer from a Swiss trade buyer. The shares subsequently plunged along with the rest of the mid-cap engineering sector, a fall that has been reversed on the back of pleasing trading updates and revived acquisitive interest, particularly from the US. It is now Bodycote's turn to offer a part of itself to the highest bidder, which is unlikely to pay the £400m-£480m Mr Hubbard is looking for. It is true that trade multiples have been higher than market multiples recently, but 10-12 times ebitda seems nearly outlandish for a company that some see as little more than a hodge-podge of unintegrated acquisitions. The prospect of a special dividend attracted investors yesterday, but at 11.5 times forecast earnings the shares look fairly priced, if not a little expensive.


own comment
general opinion seems the upside is now in the price, well they have done very well the last few months and the good step up yesterday. This has offset the downside in another area, will keep holding for a while and perhaps the bid will emerge

regards drectly

[drectly] 01/5/2008 06:07

Times

Bodycote International was the top mid-cap riser, up 30¼p to 241¾p, after it said it was considering selling its testing unit. The sale may clear the way for a bid for the rest of the company. Sulzer of Austria has been eyeing Bodycote.

[drectly] 01/5/2008 06:06

Telegraph

Bodycote
241¾p+30¼p
Questor says: Hold

Alan Thomson, the new chairman of Bodycote, has wasted no time taking the blowtorch to the strategy of the FTSE 250 heat-treatment and testing business.

The company announced yesterday that it was selling off its testing business, which handles everything from checking food for pesticide residue to testing the strength of concrete.

It was welcomed by investors, who saw the value of their shares slide late last year as hopes faded that Sulzer, the Swiss engineering group, would make a new bid for Bodycote.

The decision to sell and focus on thermal processing - fortifying components used by the motor and aerospace industries with heat treatment - marks a U-turn in strategy.

Though margins are higher in thermal processing, Bodycote had been building the business to protect itself in the event of an industrial downturn.

Bodycote said in a statement yesterday that sales growth so far this year was about 18pc but how long the industrial sector can withstand wider economic problems is questionable.

In the near term, the issue for investors is who will buy Bodycote's testing business and at what price.

Chief executive John Hubbard said a price beyond £400m was feasible, with the proceeds returned to shareholders. However analysts say that, while there shouldn't be a shortage of buyers, a "sum of the parts" valuation of £300m-£350m is more realistic.

If so, after yesterday's surge, there appears little room for further price appreciation.

Hold.

[drectly] 01/5/2008 06:04

papers for info

Independent

Elsewhere, bid speculation was evident around Bodycote, the engineering company, which gained 30.25p to 241.75p. The stock rallied thanks to a well-received update in which the company said it had appointed advisers to assist in the possible sale of its testing unit, and a round of rumours anticipating a bid from Sulzer, the Swiss engineering company which tried to acquire Bodycote last year.

[sandbank] 30/4/2008 17:05

Well the news is out now - I wouldn't think there'd be any more price action tomorrow

[mistertibbs] 30/4/2008 11:35

Just put this in my ISA on 9th this month and like you Chris, best purchase in a bad year so far for me.

[chris1604] 30/4/2008 09:04

This appears to be very good news. I think a balance of further business purchases and some return to shareholders will be the probable outcome.

We seem to be reaching the stage where Bodycote will be revalued without the takeover premium At 180p this has been my best purchase of a bad year so far and long term holders will be rewarded imo.

[edcrane] 30/4/2008 08:28

Research from Landsbanki out this morning .... worth 300p per share

Break-up plan reveals plenty of upside potential in Bodycote (NR)

· Alongside its scheduled interim management statement this morning, Bodycote announced that it has completed an unannounced strategic review with the key conclusion being that "substantial shareholder value should be unlocked" through the sale of the Testing division and likely return of capital to shareholders. Bodycote is effectively in break-up mode - we suspect the consequence of continued interest from Sulzer (whose CEO as recently as 7th April said its interest in Bodycote was "not 100% off the table"). Our initial work suggests that the sale of this small but potentially very valuable business could lift Bodycote's valuation to 300p - or possibly more – from the closing 211p. In theory Bodycote could return £300m to shareholders – or 94p per share. We expect the shares to move ahead strongly today.

· Bodycote management is holding a conference call at 8.30am today.

[drectly] 30/4/2008 08:11

very welcome, statement and initial share price reaction
probably partly explains recent strength, institutions likely to have been guided

[pobpob] 30/4/2008 08:08

... and it does! :-) medium - long term tarket £3.50

[pobpob] 30/4/2008 08:03

All seems well.. lets hope the share price agrees...