Victrex upbeat despite first half profits dip

VICTREX, the polymer manufacturing group, has posted a slight fall in half-year sales and profits, which it blamed on customer de-stocking its products in the first three months of this financial year.

The company, based in the Fylde coast in Lancashire, said revenues in the six months to the end of March were down 2% £105.6m, compared with £107.9m a year ago due to weaker demand in its Victrex Polymer Services (VPS) division.

Profits fell too, from £48.3m to £46.2m, but the group hiked the half-year dividend by 13% or 1p to 9p per share.

While VPS had to fight back from the weak first quarter Victrex’s other business unit Invibio saw revenue growth of 5% in the period to £25.5m, although operating profits were flat at £15m.

Chairman Anita Frew said the group had “recovered strongly” from the de-stocking seen in the first quarter of our financial year to deliver record group sales volume in the second quarter.
 
Looking ahead she said: “Since the end of the first half Group sales volume has remained strong and new business development activity continues to be encouraging.

“This further reinforces the positive underlying trends in our VPS business. In our Invibio business we expect sustained growth for the second half, as we make further progress in developing markets and emerging geographies.

“We remain vigilant of the uncertain economic environment, particularly in Europe. However, with our strong balance sheet and healthy cash generation, we are well placed to continue investment in the key opportunities across our business which underpin our growth aspirations for the future.”