Half-year profits surge 57% at Victrex
LANCASHIRE polymers specialist Victrex has reported record half-year figures.
The FTSE 250 company, based in Thornton Cleveleys, Lancashire, is the leading global manufacturer of Peek, a high-grade plastic used in cars, aeroplanes and factory machinery.
Interim figures for the six months to March 31 show strong demand pushed volumes to 1,434 tonnes, up 22% on the previous year. Pre-tax profits jumped 57% to £48.3m on sales of £107.9m, up 21%.
Material made by its Victrex Polymer Solutions (VPS) division is used for a wide range of applications, from flame-proofing aircraft to coating rollers in cake factories. The Invibio division specialises in supplying medical device manufacturers.
VPS accounted for £83.6m of sales, up 24%, and saw strong demand from the industrial sector. This was driven by activity in Asia and renewed investment in oil and gas production and exploration. The recovery in the automotive sector also contributed.
Invibio generated sales of £24.3m, up 10%, due to the growing the use of Victrex’s biomaterials in devices for spinal surgery, arthroscopy and orthopaedic.
Chairman Anita Frew said: “We are pleased to report record half-year group sales volume, revenue and profits. This achievement is a consequence of strong performance in both our Victrex Polymer Solutions and our Invibio Biomaterial Solution businesses.
“The strong performance exhibited in the first half has continued into the second half, with all our markets showing year-on-year growth.
“Increasing requirements for weight reduction and improved product performance from the global transport, electronics, industrial and medical markets on which we focus, should continue to augment demand for our innovative high performance thermoplastic polymers.
“With our strong balance sheet, the board believes Victrex is well placed to pursue growth and investment opportunities across our business.”
The board is proposing an interim dividend of 8p, up 25%.
