(Alliance News) - Victrex PLC on Tuesday reported a lower profit in the first half of financial 2023 as sales, marketing & administrative expenses increased and volumes were lower.
The polymer solutions company's pretax profit fell to GBP39.1 million from GBP43.6 million a year prior.
Victrex explained that pretax profit fell on lower volumes, cost inflation and targeted investment. Sales volumes fell by 14% to 1,941 tonnes from 2,264 tonnes.
Victrex declared an interim dividend of 13.42 pence per share, unchanged year-on-year.
"Our first half performance was driven by strong pricing, an improved sales mix and currency, with revenue up 1%, despite a softer macro-economic environment, resulting in weaker volumes, compared to a record financial 2022," said Chief Executive Officer Jakob Sigurdsson.
Looking ahead to financial 2023, ending September 30, the company expects pretax profit to be in line with financial 2022's GBP87.7 million.
"Victrex remains well placed for the medium to long term, with a strong core business, growing commercialisation in our mega-programmes, a highly cash generative business model, and strong environmental, social & governance credentials," the firm said.
Shares in Victrex were down 8.3% at 1,502.00p in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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Victrex (VCT)