Victrex positive on second half lift
HIGH-tech plastics manufacturer Victrex is upbeat after a stronger second half.
But destocking by customers earlier in the year, and the subdued global economy, meant full-year sales and earnings were flat.
Figures for the year to the end of September show sales up 1% at £221.9m and pre-tax profits static at £94.6m. Sales volumes increased slightly to 2,920 from 2,904 thanks to a 10% increase in the second half.
The business, based at Thornton Cleveleys, Lancashire, has two divisions: Victrex Polymer Solutions, which focuses on transport, industrial and the electronics market; and Invibio Biomaterials which supplies medical device manufacturers.
Chairman Anita Frew said: “I am pleased to report that we delivered a resilient performance at Victrex this year, with good underlying trading and improvement in the second half year.
“This has been a year of investment in our business to accelerate and underpin our future growth; investment in new capacity, in innovation and in new talent, to build, enhance and further differentiate our capabilities now and into the future. Whilst continuing to invest, we were able to maintain our strong profitability, with record cash generation and strong margins.
“Whilst it remains early in our new financial year, our momentum from the second half of 2013 has continued, with good underlying growth in VPS and recovery in Invibio. Although we remain mindful of the wider macro-economic environment, we are encouraged by the potential across our business.”
The gross margin remained high at 66% and the group is proposing a full-year dividend of 43p, up 15%.
