Profits dive at Victrex
LANCASHIRE chemicals firm Victrex has seen profits more than halve after demand in its major industrial markets fell.
In the year to September 30, pre-tax profits fell to £25.1m from £55m. Revenue was down 26% to £103m however the group said it has seen the start of a recovery in the second half.
Victrex increased its final dividend payment by 5% to 19.2p.
The group said that sales in its Victrex Polymer Solutions (VPS) division fell by 30% to £69.6m. In response, polymer production was reduced, however following an improvement in sales volume it has now been increased again.
The group’s Invibio Biomaterial Solutions (Invibio) division has a strong year and generated record revenue of £34.2m, an increase of 37% on 2008.
Chairman Anita Frew said despite challenging global economic conditions, Victrex has demonstrated the resilience of its business.
She said: “In response to the challenges faced, the VPS division has successfully completed a streamlining exercise to control costs while continuing to develop new business and work on potential new developments with customers. Consequently, the division is well placed to take advantage of its strong operational gearing as volumes recover.
“During the year the Invibio division has continued to see success across a range of end use markets and in emerging geographies. We continue to invest in resources and new technologies to drive further growth opportunities.”
The group added that production and technical director Tim Walker is retiring next March.
Ms Frew said: “Tim has been in the role for more than ten years and has made an invaluable contribution to Victrex during a period of significant development and investment. On behalf of the board I wish Tim well in his retirement. We do not propose to appoint a successor at Victrex board level, under the new divisional structure.”
It has also appointed Tim Cooper as managing director of its VPS division. Mr Cooper is currently group managing director of Umeco Composites Process Materials, part of Umeco plc.
