Victrex PLC Interim Management Statement (1780F)
July 26 2016 - 1:01AM
UK Regulatory
TIDMVCT
RNS Number : 1780F
Victrex PLC
26 July 2016
26 July 2016
Victrex plc: Interim Management Statement
'On track for H2 improvement'
Victrex plc, an innovative world leader in high performance
polymer solutions, today releases its Interim Management Statement
for the third quarter (Q3) covering the period 1 April to 30 June
2016.
Performance continued in line with our expectations during Q3.
Our core business remains robust, with growth in Aerospace and
Automotive, and a steadier performance in Oil & Gas. Our
Medical business was in line with the prior year period.
As expected, the Group's overall performance in the quarter was
offset by limited volumes in the large Consumer Electronics order
during Q3, compared to a strong Q3 2015. As previously
communicated, these volumes will be much more back-end loaded into
Q4 this year, with second half volumes still expected to be double
those in the first half.
For Q3 as a whole, Group revenue was down 6% to GBP60.6m (Q3
2015: GBP64.6m), with Group sales volume down 10% to 966 tonnes (Q3
2015: 1,070 tonnes). Excluding Consumer Electronics volumes,
overall performance was marginally ahead of the strong Q2.
Cash generation has remained healthy and there have been no
significant changes to the Group's financial position since our
interim results announcement.
Outlook
For 2016, our core business remains robust and we continue to
focus on cost opportunities. We remain on track for a second half
improvement and are comfortable with current expectations for the
full year.
Variability in end user demand and supply chain dynamics means
the Consumer Electronics market continues to offer limited
visibility. Our early planning assumptions for 2017 now suggest
these volumes will be significantly lower, compared to 2016. We do,
however, remain encouraged by medium to longer term growth
opportunities within Consumer Electronics and have market-wide
development programmes in progress, for both volume and value
opportunities. Lower Consumer Electronics volumes in 2017 would
improve the Group's sales mix, although it would be less beneficial
for operating leverage, reflecting higher fixed costs. Currency for
2017 has now become more supportive, although rates continue to be
volatile and hedging is already in place for nearly two-thirds of
our FY17 financial year.
Victrex remains in a good position for the medium to longer
term. The Group has a strategy to further increase our
differentiation, a strong pipeline of potentially game-changing
projects and a highly cash generative business model.
Enquiries:
Victrex plc:
Andrew Hanson, Head of Investor Relations & Communications +44 (0) 7809 595831
Louisa Burdett, Group Finance Director +44 (0) 1253 897700
Teneo Strategy:
Charles Armitstead +44 (0) 203 603 5220
About Victrex:
Victrex is an innovative world leader in high performance
polymer solutions, focused on the Automotive, Aerospace, Energy,
Electronics and Medical markets. Every day, millions of people rely
on products or applications which contain our materials, from
smartphones, aeroplanes and cars to oil & gas operations and
medical devices. With over 35 years' experience, we deliver leading
edge solutions to shape future performance for our customers and
our markets, and to drive value for our shareholders. Find out more
at www.victrexplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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