Bodycote PLC CORONAVIRUS (COVID-19) UPDATE (8082I)

TIDMBOY

RNS Number : 8082I

Bodycote PLC

06 April 2020

06 April 2020

CORONAVIRUS (COVID-19) UPDATE

MACCLESFIELD (U.K.) - Bodycote, the world's largest provider of heat treatments and specialist thermal processing services, issues the following update.

Protective measures and business continuity

Bodycote's primary concern has always been the safety and well-being of our stakeholders including our employees, customers and the wider community.

The reality of the COVID-19 pandemic has given this priority even greater predominance. Our facilities have implemented additional personal protection measures, intensified hygiene, and social distancing protocols that meet or exceed WHO, government and local guidelines. Our operations are being managed safely as we maximise business continuity to provide our essential services and continue to support our customers.

A COVID-19 task force convenes daily to monitor the situation and coordinate our activities on the ground while managing communications with our customers and employees, keeping them informed about the evolving situation.

Recent Trading

Trading in the first quarter has not been significantly impacted by disruption from the pandemic. Nonetheless, we have already been taking mitigating actions in anticipation of tougher conditions to come. These actions are designed to align our cost base with any reduced demand and we will continue to take further action in response to developments and as we deem necessary.

Financial Position

Following the announcement today of the completion of the acquisition of Ellison Surface Technologies, Bodycote is approximately GBP83 million drawn on its GBP230 million revolving credit facility (RCF), which has two more years to run. Accordingly, there remains GBP147 million of immediately available liquidity. The Group's current net debt: EBITDA gearing ratio is 0.7 times, well below the 3 times covenant ceiling permitted under the RCF. Bodycote has a very strong balance sheet and can withstand a significant decline in trading conditions. Nonetheless, given the uncertainty in the current environment the Board is keeping the proposal for the final dividend under review.

Stephen Harris, Group Chief Executive of Bodycote plc, commented: "Bodycote's financial position is strong and our agile and devolved approach to managing the business from day to day puts us in a good position to weather the unprecedented disruption which we are likely to face. I also take this opportunity to recognise the commitment, courage and professionalism shown by our employees during this challenging time."

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About Bodycote

With more than 185 locations in 23 countries , Bodycote is the world's largest provider of thermal processing services . Through heat treatment, metal joining, surface technology and Hot Isostatic Pressing (HIP), Bodycote improves the properties of metals and alloys, extending the life of vital components for a wide range of industries , including aerospace, defence, automotive, power generation, oil & gas, construction, medical and transportation. Customers in all of these industries have entrusted their products to Bodycote's care for more than 30 years. For more information, visit www.bodycote.com .

For further information, please contact:

Bodycote

Stephen Harris, Chief Executive Officer

Dominique Yates, Chief Financial Officer

Michaela Yasin, Chief Marketing Officer

Tel No [phone]

FTI Consulting

Richard Mountain

Susanne Yule

Tel No [phone]

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April 06, 2020 02:01 ET (06:01 GMT)