City round-up: K3 Business Technology; Victrex
Salford-based K3 Business Technology Group, a provider of business-critical software solutions focused on fashion and apparel brands, said Executive Chairman, Tom Crawford, will be stepping down from his current role to become a Non-executive Director.
This change of role will take effect with the publication of the company’s interim results, due in mid-July. The group said it reflects Tom’s need to reduce his work commitments in light of the health condition of a close family member.
In addition, with effect from today (July 4), Eric Dodd, Chief Financial Officer, will take up the role of Chief Executive Officer, and Lavinia Alderson, Group Corporate Finance Director, is appointed as Chief Financial Officer.
Lavinia Alderson joined K3 in December 2020 as Group Corporate Finance Director. She has significant commercial and financial experience, having previously been Finance Director of Concept Life Sciences, which provides market leading scientific services globally and, before that, Head of Finance UK Support & Governance at Cape, the energy services company. She qualified as a Chartered Accountant at PwC in 2003.
The Board confirms that the group remains on track to perform in line with its expectations for the current financial year.
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Victrex electronic engineer at work
High performance polymer business Victrex has seen “some signs of improvement” across several of its markets.
In its Sustainable Solutions business Value Added Resellers (VAR) saw the most improvement, compared to the prior year, with strong volume growth, up double-digit.
Aerospace, Automotive, Electronics and Energy & Industrial delivered solid performances compared to the prior year.
In this morning’s trading statement the Blackpool headquartered stock market listed company also said it had enjoyed good growth in its Energy division, which had offset “continued softness” in General Industrial, which they expect will see a slower recovery.
Jakob Sigurdsson, Chief Executive of Victrex, said: “With continued momentum in some end markets, we remain focused on our goal of a better second half year. However, high inventory levels and industry destocking amongst major medical device customers continue to be challenging for our Medical business. At this stage, Medical performance is tracking lower than our expectations for the second half year.
“On a full year basis, our volume guidance is unchanged and we continue to expect low to mid single digit volume growth. At a profit level, destocking in Medical and ongoing lower asset utilisation continue to be headwinds, with currency rates starting to move adversely in the second half. Unless Medical improves above current run-rates, the opportunity to deliver a slightly better PBT performance in H2 2024, versus H2 2023 – in line with our previous guidance – will be challenging. Cost discipline remains strong.
“The recent signs of improvement in several end-markets make growth prospects more encouraging as we move towards FY 2025. Victrex has a diversified core business, increasing commercialisation in our mega-programmes, well invested assets, enhanced capability in our global team and the opportunity for substantial cashflow improvement. Overall, we have confidence in our medium to long-term prospects.”
Third quarter group revenue was up 2% at £74.0m (Q3 2023: £72.2m), and year to date group revenue of £213.3m is 9% lower than the prior year period (Q3 2023 YTD: £234.4m) reflecting the softer first half year and lower Medical revenues.
Victrex has also cut net debt as of 30 June 2024 to approximately £10m lower than at the half year, as cash generation improved during the quarter, giving a Q3 net debt position of £39.6m (Q3 2023: £18.2m), which includes cash of £22.7m.
For guidance to market analysts, the statement said full year capital expenditure will be approximately £35m, following completion of major strategic capital investments over recent years.
