Polymers group posts record annual revenues and volumes

Victrex, the Lancashire polymers group, announced record revenues and volumes for the year to September 30, 2022, today.

The Clevelys-based group achieved an 11% increase in revenues, of £341m, while volumes rose eight per cent to 4,727 tonnes.

Pre-tax profits fell from £92.5m the previous year, to £87.7m this year, after exceptional items of £7.9m.

During the year the group registered double digit growth in Electronics, Energy & Industrial, Value Added Resellers (VAR). Aerospace is improving, while the semiconductor challenges impacted Automotive. The group reported continued progress in Medical, with revenue growing by 14%.

Fiscal year 2022 available cash stood at £66m, excluding £2.8m of cash ring-fenced in the group’s Chinese subsidiaries, and includes £10.1m in 95-day notice deposit accounts, and post-payment of the 2021 special dividend.

Chief executive, Jakob Sigurdsson, said: “This was a record year for revenue and volume.

“We delivered good progress across the majority of our end markets, new application growth and improved pricing, as we continue to recover cost inflation.

“It was also pleasing to see double digit growth in Medical. We are prioritising investment in this business, with the intention of Medical contributing over one-third of group revenues in the longer term.”

He added: “With a strong financial position, we can support growth investment, which is our priority, as well as attractive shareholder returns. As part of these results, we will engage with shareholders on a proposed update to our capital allocation framework, specifically share buybacks and special dividends.”

Looking ahead, he said: “Several end markets are yet to fully recover from the effects of the pandemic and we continue to see good growth opportunities across the group. However, we are mindful of the uncertain macro-economic outlook for 2023 and some signs that VAR volumes are edging down slightly, to more normalised levels. This means the opportunity to improve on last year’s record group volume is likely to be challenging. We also face further and significant year-on-year energy and raw material inflation, although additional pricing actions are in progress, with a timing lag.

“Overall, we have seen a steady start to the year and are focused on modest revenue and profit growth. This includes the benefit from pricing, an improved sales mix and currency tailwinds. We will also see further investment in our long term growth programmes, as they progress towards greater commercialisation.”