(Alliance News) - Victrex PLC on Monday declared a special dividend after reporting a "solid and sustainable recovery" in annual results.
The speciality chemicals firm posted revenue of GBP306.3 million for the financial year that ended September 30, up 15% from GBP266.0 million the year before. Pretax profit was up 46% year-on-year to GBP92.5 million from GBP63.5 million.
In a robust set of results, Victrex noted double-digit growth in its Electronics, Energy & Industrial and Value Added Resellers divisions. Its Automotive business saw signs of improvement although semiconductor shortages weighed on progress in the second half, slightly slowing momentum.
Victrex declared a full year dividend of 59.56 pence, up 29% from 46.14p paid last year. In addition, as a result of its available cash balance exceeding the GBP85 million threshold, Victrex also proposed a 50p share special dividend.
Looking ahead to financial 2022, Victrex said its assumptions are for progress in sales volumes, with several end-markets expected to see further recovery, including in medical.
The Lancashire-based company operates in six core markets: aerospace, automotive, energy, electronics, manufacturing & engineering and medical.
Victrex said it was facing increased raw material and energy costs, which will hurt earnings particularly in the first half of the new year, although it noted mitigation plans "are progressing".
"We will increase our investment in innovation, and will start to incur commissioning costs in relation to our new China facility, although better asset utilisation should support our margin. Overall, we plan to deliver year-on-year growth in financial 2022," said Chief Executive Officer Jakob Sigurdsson.
"With an attractive portfolio of short, medium and long term growth opportunities, a strong ESG agenda, including alignment to global megatrends and sustainable products which help Co2 reduction and support environmental and societal benefit, and a highly cash generative business model, the group remains well placed for the medium to long-term."
Shares in Victrex were up 3.2% at 2,430.00 pence in London on Monday morning.
By Will Paige; willpaige@alliancenews.com
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Victrex (VCT)