Victrex PLC Trading Statement (1617M)
October 11 2016 - 1:00AM
UK Regulatory
TIDMVCT
RNS Number : 1617M
Victrex PLC
11 October 2016
11 October 2016
Victrex plc: Full year and pre-close trading update
'Improved second half; good finish to 2016'
Victrex plc, an innovative world leader in high performance
polymer solutions, today releases its full year and pre-close
trading update for the financial year ended 30 September 2016,
ahead of its preliminary results on 6 December 2016.
In line with expectations, Victrex delivered an improved
performance in the second half and a good finish to 2016.
The core business was in growth, with Aerospace and Automotive
performing well, and a more stable performance in Oil & Gas
during the second half. Sales volumes for the large Consumer
Electronics business were delivered on plan during Q4, with overall
second half volumes more than double those in the first half. Q4,
overall, saw a good performance with Group revenue up 8% to
GBP73.7m (Q4 2015: GBP68.0m) and Q4 Group sales volume up 9% to
1,216 tonnes (Q4 2015: 1,119 tonnes).
Despite a positive finish to 2016, full year Group revenue
declined by 4% to GBP252.3m (FY2015: GBP263.5m), reflecting the
year on year fall in Consumer Electronics volumes, which were more
than 30% down. Full year Group sales volume was down 6% at 3,952
tonnes (FY 2015: 4,217 tonnes).
Medical revenue (Invibio) for the full year of GBP50.8m (FY
2015: GBP50.5m) reflects a stable Spine market in the US. Growth
outside of the US, in emerging markets, remains positive.
Our mega-programmes continue to make progress, with the Magma
Oil & Gas project delivering first meaningful revenues of over
GBP1m in FY16. Incremental investment opportunities aligned to our
mega-programmes are also being progressed, which would further
support delivery of the Group's downstream strategy and growth
pipeline.
Outlook
As we start our new financial year, our core business remains
robust. However, we remain mindful, as previously communicated,
that our early planning assumption suggests Consumer Electronics
volumes will be significantly lower in 2017, compared to 2016. This
would also impact our operating leverage.
Whilst we will continue to invest in our 'front end' commercial,
marketing and technical functions, to help drive adoption of our
mega-programmes, we will also further enhance our ongoing focus on
cost efficiency opportunities over the coming year.
With a differentiated strategy, a strong pipeline and a highly
cash generative business model, Victrex remains in a good position
to drive shareholder value for the medium to longer term.
Enquiries:
Victrex plc:
Andrew Hanson, Head of Investor Relations & Communications +44 (0) 1253 898121
Louisa Burdett, Group Finance Director +44 (0) 1253 897700
David Hummel, Chief Executive +44 (0) 1253 897700
Teneo Blue Rubicon:
Charles Armitstead +44 (0) 207 260 2700
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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