Victrex maintains steady performance ahead of FY16 investment plans

Lancashire-based polymer manufacturer Victrex maintained steady revenue and profit growth in the year ending September 30.

The firm’s revenue grew year on year by £10.9m to reach £263.5m while its pre-tax profit hit £106.4m, an increase of £3.7m against the same period in 2014.

In the 12 months to September 30, the Thornton-Cleveleys company’s Victrex Polymer Solutions division achieved a revenue of £213m and gross profit of £123.9m, both of which represent 7% year-on-year growth.

Conversely, Victrex’s Invibio Biomaterial Solutions division failed to achieve growth, with its revenue shrinking by 5% and gross profit by 6%. The firm has attributed the contraction to industry consolidation in the US spine market, with spine accounting for approximately 75% of its medical business.

Victrex has investment plans in the pipeline. Moving forward, the firm intends to invest between £25m and £35m per year, creating a new facility to bolster its Magma Oil & Gas mega-programme and also its aerospace business. Furthermore, to strengthen its offering in the medical sector, Victrex will invest in its manufacturing capability for trauma plates.

Victrex’s chief executive, David Hummel, said: “2015 was a good year overall for Victrex, where our strong and balanced portfolio helped to drive growth, fully overcoming the significant headwinds we faced from foreign currency, weaker Oil & Gas and US medical industry consolidation.

“We will make further downstream manufacturing investments this year to support our pipeline. These investments, to underpin aerospace, magma and medical manufacturing programmes, will further differentiate Victrex and continue our transition to become a solutions provider.”

He continued: “We are pleased to be announcing a new capital allocation framework today, which prioritises investment for growth, but offers the opportunity for enhanced shareholder returns.

“At this early stage, we are mindful that industry challenges in Oil & Gas and Invibio may continue during the first half.”

Speaking further, Mr Hummel said he believes the firm is well positioned to make year-on-year progress in 2016.

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