Overview

The macro-economic environment in the first half of 2015 was challenging, including a significant downturn in the global oil & gas markets, which sharply reduced demand from this sector in the second quarter. This has had a knock-on effect in a number of the general industrial sectors, in particular the agricultural equipment market, and added to the challenge. However, this environment has provided an opportunity to demonstrate Bodycote's resilience.

Financial highlights

	Half Year to 30 June 2015
Revenue	£299.8m
Headline operating profit	£54.1m
Headline operating cash flow	£40.2m
Basic headline earnings per share	21.1p
Interim dividend per share	4.8p

Business ReviewAerospace, Defence & Energy (ADE)

Revenues for the ADE business were £128.8m in the six months to June 2015 compared with £133.5m in 2014, a decrease of 3.5%.

Business ReviewAutomotive & General Industrial (AGI)

Revenues for the AGI business were £171.0m in the first half of 2015, compared with £178.8m in 2014, a decrease of 4.4%.

Summary and outlook

The Group's performance was resilient in the first half, with business improvements mitigating the sharp cutback in oil & gas activities.