Bodycote has reported a drop in its revenues and profits due to falling demand in the oil and gas sectors.

In its half-yearly report to 30 June, the Macclesfield-based engineering company saw its turnover fall by 4% to £299 million, while its pre-tax profits dropped by 3.5% to £52.6 million.

The company said that “business improvements” had mitigated the reduction in oil and gas activities and a headline operating margin was maintained at 18%. It said there was continued growth in specialist technologies, and an exceptional restructuring charge of £19.9 million was incurred as it exited activities in Brazil.

Group chief executive Stephen Harris said: “No upturn is anticipated in the second half in oil and gas, and general industrial demand is expected to remain soft. However, the second half will benefit from the early results of restructuring and from further progress in aerospace and automotive, together with continued growth from the group’s specialist technologies.

“The board is confident that the management’s continued focus on business improvement will generate good returns throughout the cycle.”