Bodycote, Caffyns and Independent Oil & Gas

The FTSE 100 started the last trading session before spring break broadly flat following a slight decline in oil prices and lacklustre overnight performances on Wall Street and in Asia,” says AJ Bell Investment Director Russ Mould.

“Bodycote’s board has maintained its outlook for the full-year results but its trading update did little to inspire confidence among investors. Bodycote’s like-for-like revenues for the first months of the year, after taking account of its exit from Brazil and its restructuring, are 7% down at constant exchange rates.

“General industrial demand for the group’s heat treatment, metal joining, hot isostatic pressing and coatings services, remains weak with revenue streams from the oil and gas, mining and agriculture sectors all depressed. Bodycote’s admission of ‘limited forward visibility’ saw its shares fall in early trading.

“Car dealer Caffyns is poised for growth following a strong performance in the year to the end of March. The group’s like-for-like new car sales rose by 6.2% compared with 3.3% in its market sector and underlying pre-tax profits were up by 15.6%. The group now has significant financial flexibility to take advantage of opportunities to expand.

“Independent Oil & Gas was a strong early riser after it swung into the black in the year to the end of December despite exceptionally challenging ongoing market conditions. IOG is now positioned for future growth and, through its funding partnership with London Oil & Gas, is well placed to pursue low-risk opportunities which are being created in the current market environment.”

These articles are for information purposes only and are not a personal recommendation or advice.