Victrex PLC Reduction in effective tax rate (6641P)
September 04 2017 - 1:00AM
UK Regulatory
TIDMVCT
RNS Number : 6641P
Victrex PLC
04 September 2017
4 September 2017
Victrex plc
Reduction in Group's effective tax rate under Patent Box
Victrex plc, an innovative world leader in high performance
polymer solutions, today announces that, based on recently-granted
UK patents and following discussions with Her Majesty's Revenue
& Customs (HMRC) about the UK's Patent Box legislation(1) , we
now expect our tax rate to be materially lower than previous
guidance.
With a strong history of investing in research and development
(R&D) and of patenting our Intellectual Property (IP),
Victrex's strategy of moving downstream from Polymer to Parts, and
further differentiating our business through product leadership,
will continue to be supported by our approach to R&D
investment, to innovation and IP protection.
Starting in the current financial year ending 30(th) September
2017(2) , we anticipate the annualised impact of Patent Box to
reduce the Group's effective tax rate from approximately 21% to
around 12%, with an ongoing favourable impact on earnings per share
(EPS) and cash, although no cash benefit would be seen in FY17.
At a trading level, Victrex continues to be comfortable with
current expectations.
This announcement contains inside information.
Notes:
1 The UK's Patent Box legislation was introduced in April 2013.
The UK government encourages high-value growth in UK plc through a
competitive tax regime that supports UK R&D from conception to
commercialisation. The Patent Box forms a key part of this strategy
by encouraging companies to commercialise their patents and R&D
in the UK
2 IFRS requires tax to be recognised on the most likely outcome.
The directors consider the acceptance of Patent Box in the 2017
computations to be more likely than not, although as with all tax
items, HMRC reserve the right to query the Company's
calculations
Enquiries:
Victrex plc:
Andrew Hanson, Director of Investor Relations & Corporate
Communications
+44 (0) 1253 898121
Louisa Burdett, Group Finance Director
+44 (0) 1253 897700
David Hummel, Chief Executive
+44 (0) 1253 897700
About Victrex:
Victrex is an innovative world leader in high performance
polymer solutions, focused on the strategic markets of Automotive,
Aerospace, Energy (including Manufacturing & Engineering),
Electronics and Medical. 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 develop world
leading solutions in PEEK and PAEK-based polymers, semi-finished
and finished parts which shape future performance for our customers
and our markets, and 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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