Bodycote PLC on Wednesday said trading in the four months ended April 30 has been ‘modestly’ ahead of its expectations, and announced its Chief Executive Stephen Harris will retire next year.

The Cheshire-based supplier of heat treatments and specialist thermal processing services said group revenue for the period was £281 million, up 22% at actual rates and 17% higher at constant currency, from £230 million a year earlier.

The company said energy surcharges have steadily declined from their peak in the fourth quarter of last year in line with the global trend in energy costs.

Revenue in the period also benefitted from price increases, which have ‘enabled us to successfully mitigate the impact of other inflationary effects on our cost base’.

Looking ahead, the company said guidance for the full year remains unchanged. It expects underlying volume to continue to grow ahead of the background markets, and margins to expand as surcharges moderate.

Net debt as at April 30 stood at £37.7 million compared to £33.4 million on December 31.

In a separate announcement, Bodycote said CEO Stephen Harris has decided to retire next year.

Harris joined Bodycote in November 2008 and became CEO in January 2009. A formal process to appoint Harris’ successor will now begin.

Bodycote shares were down 0.1% at 648.50 pence each on Wednesday morning in London.

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