Victrex PLC AGM and Q1 Interim Management Statement (1261C)
06 Febbraio 2020 - 08:00AM
UK Regulatory
TIDMVCT
RNS Number : 1261C
Victrex PLC
06 February 2020
6 February 2020
Victrex plc - AGM and Q1 Interim Management Statement
'Solid start to FY 2020 against weaker comparatives;
expectations unchanged'
Victrex plc, an innovative world leader in high performance
polymer solutions, today releases its first quarter (Q1) Interim
Management Statement ahead of its Annual General Meeting (AGM)
being held today. Q1 covers the period 1 October to 31 December
2019.
Against much weaker comparatives, the Group saw an initial
improvement during Q1. Automotive delivered good year on year and
sequential growth, partly reflecting phasing, whilst Electronics
and Value Added Resellers continued to see some signs of stability.
Aerospace growth continued, although we are mindful of some
headwinds within the industry this year, whilst Energy was notably
weaker. In Medical, we saw a stable performance, with good growth
continuing in Asia.
For Q1 as a whole, revenue of GBP67.7m was up 6% on the prior
year (Q1 2019: GBP64.1m), with Q1 Group sales volume of 877 tonnes
being up 7% on the prior year (Q1 2019: 822 tonnes). On a year to
date basis, the Group remains ahead of last year, with performance
in January being broadly in line with the strong January of the
prior year.
Mega-programmes
Our pipeline of 'mega-programmes' remains strong. In Aerospace,
we acquired the remaining equity in the TxV Aero Composites
business from Tri-Mack. Our US facility in Rhode Island continues
to manufacture a range of composite products, delivering commercial
and prototype revenue. In Magma, Victrex is currently supporting
the qualification pipe project for TechnipFMC's new Hybrid Flexible
pipe targeted at opportunities in Brazil. Several smaller projects
are also expected to deliver revenue this year, including in the
Gulf of Mexico, North Sea and West Africa. In our PEEK Knee
programme, we are moving closer to securing a second partner, as
well as progressing discussions with major OEMs in this market.
Joint-venture investment in China
As previously communicated, Victrex completed a class 2
transaction on 13(th) January 2020, to create a joint-venture in
China which will, subject to certain performance conditions, build
and operate a 1,500 tonne PEEK manufacturing plant to serve that
market. Commissioning of the facility is anticipated in early 2022,
with Victrex's share of the overall investment expected to total
GBP32m.
Financial position
Victrex retains a highly cash generative business model, with no
material change to its financial position since 30 September 2019.
Currency remains a modest tailwind for FY 2020, although we note
that Sterling's rerating over recent months now implies a growing
headwind for FY 2021.
Outlook
Jakob Sigurdsson, Chief Executive of Victrex, said: "This is a
solid start to FY 2020, although it is against weaker comparatives
in the prior year.
"Whilst it is pleasing to see some year on year progress in
Automotive, partly reflecting phasing, and continuing signs of
stability in Electronics and Value Added Resellers, we note the
weaker performance in Energy, in line with recent industry
commentary. Overall, our expectations are unchanged and at this
early stage, we continue to be focused on making year-on-year
progress. For the medium to long-term, our Polymer & Parts
strategy keeps us well placed to deliver our growth
opportunities."
Enquiries:
Victrex plc:
Andrew Hanson, Director of Investor Relations & Corporate 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, 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 40 years' experience, we
are moving beyond the polymer into semi-finished and finished
products which shape future performance for our customers and our
markets, and drive value for our shareholders. Find out more at
www.victrexplc.com
Analyst and investor call:
A conference call for analysts and investors will be held this
morning at 08.30am GMT. Dial in details +44 (0) 3333 000804 PIN:
94528843#
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