(Sharecast News) - High performance polymer solutions supplier Victrex posted a drop in interim profits on Monday but a jump in revenues thanks to a strong performance in most industrial end markets.
In the six months to the end of March, underlying pre-tax profit ticked up 3% to £48.2m, but reported pre-tax profit was down 6% to £43.6m, reflecting £4.6m of exceptional items relating to one-off software implementation expenses.
Group revenue rose 6% to £160.1m, reflecting a strong performance in most Industrial end markets and a better performance in the medical division, while volumes jumped 8% to 2,264 tonnes.
Chief executive Jakob Sigurdsson said it was a strong first half, with further improvement across all end markets, good progress in the medical business as elective surgeries returned in greater numbers and improved average selling prices compared to the second half of 2021.
"Our core business and PEEK offering continue to be strong, with a clear focus on increasing the proportion of sustainable products which bring environmental and societal benefit," he said.
"For the remainder of FY 2022, we anticipate continuing volume growth, which is likely to see growth of a similar magnitude to the first half, although we are mindful of the potential for a changing global economic environment later in the year. Mitigation plans for recovering additional inflation are making good progress although, as previously communicated, gross margin in the second half is likely to be slightly lower than the first, primarily as a consequence of currency movements. Nevertheless, for FY 2022 as a whole, we remain focused on delivering good year-on-year growth."
At 0815 BST, the shares were down 4.2% at 1,722p.
Victrex (VCT)