VCT Victrex Plc

TIDMVCT

RNS Number : 6360V

Victrex PLC

25 July 2018

25 July 2018

Victrex plc: Interim Management Statement

'On track for a strong FY18'

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 2018.

Victrex has performed well since the end of the first half and cash generation has remained strong. Core business momentum has continued, with the majority of our markets in growth. Q3 saw a slightly lower contribution from the large Consumer Electronics order and with no volumes expected from this order in the fourth quarter, we will see a tougher Q4 comparative versus last year.

Medical revenue was in line with the prior year. Despite the challenging US Spine market, we still anticipate delivering meaningful revenue this year for our differentiated and innovative PEEK-OPTIMA(TM) HA Enhanced product.

Overall, Q3 Group sales volume was up 14% to 1,161 tonnes (Q3 2017: 1,022 tonnes), with Group revenue up 10% to GBP84.0m (Q3 2017: GBP76.3m). Year to date Group sales volume of 3,417 tonnes is 19% up on the prior year (2017 YTD: 2,881 tonnes), with year to date Group revenue of GBP250.6m up 21% (2017 YTD: GBP207.3m).

Mega-programme progress

Victrex continues to focus on delivering further milestones in its growth pipeline and mega-programmes.

Following a commitment to deploy Magma's flexible oil & gas composite pipe by Tullow in West Africa, additional opportunities are under discussion, both with Tullow and other operators, in FY19. In Aerospace, construction of our US manufacturing facility, to support our TxV Aero Composites joint venture, is nearing completion, with prototype orders already in place. In Medical, following the agreement with Straumann Dental to enhance market access for our Juvora Dental product, we are in discussions for further customer agreements.

Currency

Currency remains in line with guidance for FY18, with approximately 90% of the FY18 currency benefit already seen in the first half, and a much lower benefit in the second half year. Looking ahead to 2019, over 50% of our currency hedges are in place. Although Sterling has slightly weakened since the end of our first half year, our guidance for FY19 remains similar, with an approximately GBP8m - GBP10m headwind to profits based on current rates and hedging in place, and reflecting some emerging raw material inflation.

Outlook

With continued momentum in our core business and milestones in our mega-programmes, we remain well positioned to continue driving growth as part of our Polymer & Parts strategy.

Although growth comparatives will be tougher in Q4, and we will see currency becoming a headwind, Victrex remains comfortable with full year expectations. Overall, we are on track to deliver a strong performance for FY18 as a whole.

Analyst & investor conference call

A conference call for analysts & investors will be held today, Wednesday 25 July at 08.00 BST.

Dial in details: +44 3333 000804 PIN: 96849285#

Enquiries:

Victrex plc:

   Andrew Hanson, Director of Investor Relations & Communications              +44 (0) 7809 595831 

Richard Armitage, Group Finance Director +44 (0) 1253 897700

Jakob Sigurdsson, 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 use products and applications, which contain our materials - from smart phones, aeroplanes and cars to oil and 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

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