Oil and gas sector weakness still troubling polymer innovator

LANCASHIRE-based Victrex, an innovator in high performance polymer solutions, is continuing to suffer as a result of the weaker oil and gas sectors.

Its half year and pre-close trading statement ahead of its interim results on May 16, said its H1 performance was down on the prior year, but was on track for improvement in the second half.

Q2 was robust with volumes excluding consumer electronics flat compared to the record prior year, despite the weaker performance in oil and gas.

The re-phasing of consumer electronics volumes to the second half year, together with the tougher first half comparatives and worsening outlook in oil and gas, led to group revenue declining by 11% to £117.0m (H1 2015: £131.6m).
 
H1 Group volumes were down 13% to 1,770 tonnes (H1 2015: 2,028 tonnes).

The Thornton Cleveleys company said it remained encouraged that the performance in its industrial markets outside of electronics and oil gas was solid, with transport markets in growth.

The performance of its medical business Invibio was broadly similar to the prior year. Invibio revenue for the first half was £25.2m (H1 2015: £25.9m).
 
Victrex chief executive David Hummel said: “We retain our view of an overall improvement in the second half and are comfortable with current expectations for the full year as a whole.”