26 July 2016

Victrex plc: Interim Management Statement

'On track for H2 improvement'

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 2016.

Performance continued in line with our expectations during Q3.  Our core business remains robust, with growth in Aerospace and Automotive, and a steadier performance in Oil & Gas. Our Medical business was in line with the prior year period. 

As expected, the Group's overall performance in the quarter was offset by limited volumes in the large Consumer Electronics order during Q3, compared to a strong Q3 2015. As previously communicated, these volumes will be much more back-end loaded into Q4 this year, with second half volumes still expected to be double those in the first half.  

For Q3 as a whole, Group revenue was down 6% to £60.6m (Q3 2015: £64.6m), with Group sales volume down 10% to 966 tonnes (Q3 2015: 1,070 tonnes). Excluding Consumer Electronics volumes, overall performance was marginally ahead of the strong Q2.

Cash generation has remained healthy and there have been no significant changes to the Group's financial position since our interim results announcement.

Outlook

For 2016, our core business remains robust and we continue to focus on cost opportunities.  We remain on track for a second half improvement and are comfortable with current expectations for the full year.

Variability in end user demand and supply chain dynamics means the Consumer Electronics market continues to offer limited visibility. Our early planning assumptions for 2017 now suggest these volumes will be significantly lower, compared to 2016. We do, however, remain encouraged by medium to longer term growth opportunities within Consumer Electronics and have market-wide development programmes in progress, for both volume and value opportunities. Lower Consumer Electronics volumes in 2017 would improve the Group's sales mix, although it would be less beneficial for operating leverage, reflecting higher fixed costs. Currency for 2017 has now become more supportive, although rates continue to be volatile and hedging is already in place for nearly two-thirds of our FY17 financial year.

Victrex remains in a good position for the medium to longer term. The Group has a strategy to further increase our differentiation, a strong pipeline of potentially game-changing projects and a highly cash generative business model.

Enquiries:

Victrex plc:

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

Louisa Burdett, Group Finance Director                                        +44 (0) 1253 897700

Teneo Strategy:

Charles Armitstead                                                                     +44 (0) 203 603 5220

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