Victrex Share News (VCT)

LONDON (Alliance News) - Victrex PLC on Thursday said it delivered a good performance in the first half of its financial year, with revenue rising on the back of an improved sales volume boosted by the strong performance of its consumer electronics division.

The FTSE 250-listed polymer products company said group revenue in the first half of its financial year to the end of March is expected to be GBP130.3 million, up 8.7% from GBP119.9 million a year earlier. Its sales volume in the first half was 2,028 tonnes, 28% higher year-on-year.

The first half was boosted by a good performance in its consumer electronics business, though this was slightly offset by lower sales in its Invibio medical business. Gross margins improved in the half on the back of better manufacturing efficiencies, it said.

Victrex Polymer Solutions saw lower sales to oil and gas markets in the first half, the company said, but this was offset by its performance elsewhere. It has now completed the commissioning of the first production stream on its third PEEK manufacturing plant, and operations at the site started on schedule.

In the Invibio business, the company was hit by industry consolidation in the first quarter, though it did see some improvement in the second quarter. Invibio revenue was down 4% in the half to GBP25.9 million, though it was flat in constant currencies.

Victrex expects the impact of adverse currency movements to continue into the second half, though it still expects full-year results in line with its expectations.

It will publish its half-year results on May 19.

"Victrex delivered a good first half performance overall. Although we are mindful of the tougher comparatives for the second half and the continued caution in the oil and gas market, we remain well positioned for progress over the full year," said Victrex Chief Executive David Hummel.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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