Member Article

Thornton-Cleveleys-based Victrex reports pre-tax profit of £53.9m

Thornton-Cleveleys-based Victrex has published its half yearly report, showing strong results despite troubles in the oil and gas sector and currency headwinds.

Stats

Victrex, which specialises in high performance polymer products, has reported a 10% increase in pre-tax profit at £53.9m for the half year compared to £48.9m for the same period last year.

The firm has also reported a 9% increase in revenue, which stands at £130.3m for this year, compared to £120.0m for the previous year.

Analysis

The results are due in part to a strong performance in Victrex Polymer Solutions offsetting a weaker performance by oil and gas.

The company has also seen strong consumer electronics volumes and predicts further potential for FY16.

The group reported in April that it has been impacted by changes in oil pricesas well as fluctuating currency rates

Comment

Chief executive of Victrex, David Hummel, said: “Victrex made good progress in the first half, with VPS performing well and offsetting lower sales into Oil and Gas.

“Invibio’s performance reflects some impact from industry consolidation in the first half, although we remain focused on second half improvement.

“Volume and plant efficiency helped drive improvement in our gross margins during the first half. Our new PEEK polymer capacity also came online and will help underpin our future growth programmes, alongside our downstream manufacturing capability.

“Cash remains strong, helping to support an increase in our interim dividend to 11.73p.

“As previously communicated, we are progressing our capital allocation and investment for growth plan, and expect to update the market at the year end.

“For the second half year, we are mindful of the tougher comparatives and the ongoing caution in the Oil and Gas market. Foreign currency remains a considerable headwind although we still expect to fully overcome the impact through our positive growth momentum.

“Consequently, Victrex continues to be well positioned for profit progress over the full year.”

Summary

Victrex sees 10% increase in pre-tax profits and a 9% increase in revenue but is exercising caution due to currency headwinds and oil and gas uncertainty.

This was posted in Bdaily's Members' News section by Sophia Taha .