Victrex issues profit warning as poaches CEO from AB Dynamics

Tue, 08th Jul 2025 09:06

(Alliance News) - Victrex PLC on Tuesday said it has hired away the chief executive of fellow London listing AB Dynamics PLC to be its own new CEO, as the polymer producer also warned of weaker-than-expected revenue in its Medical division.

Victrex shares were down 9.4% to 711.87 pence early Tuesday in London. AB Dynamics shares were down 1.8% to 1,620.50p.

Lancashire, England-based Victrex said James Routh will replace Jakob Sigurdsson, who will retire after helming the company for eight years. Victrex said no start date has yet been agreed for Routh.

Wiltshire, England-based AB Dynamics confirmed Routh will depart as CEO, though it noted he has a 12-month notice period. Chair Dick Elsy will lead the board's search for a successor.

AB Dynamics provides testing, simulation and measurement products to the transport market.

Victrex said Routh brings "leadership experience from international manufacturing and engineering based businesses, all of which are directly aligned to Victrex's end-markets". Prior to leading AB Dynamics for the past seven years, Routh was group managing director of engineering firm Diploma PLC for six. He also has worked at defence firm Chemring Group PLC and aerospace firm Cobham PLC.

Turning to recent trading, Victrex said volume growth remained strong in the three months that ended June 30, the company's financial third quarter, but revenue declined due to the sales mix and weaker-than-expected revenue in the Medical division.

Sales volume was 1,057 tonnes in the third quarter, up 8.0% from 979 tonnes a year before. Revenue was GBP71.5 million, down 3.4% from GBP74.0 million. That left nine-month volume up 13% but nine-month revenue up only 1.9%.

Victrex said Medical performance was below expectations due to the Spine business, which is suffering from "industry destocking, the effects from volume-based pricing in China, and alternative materials in the US Spine market".

Group average selling price was GBP68 per kilogramme, down 11% from GBP76 a year before, due to an adverse sales mix in both the Medical and Sustainable Solutions divisions and competitive pricing.

Looking ahead, Victrex said currency movements remain a headwind. It estimates the impact on pretax profit will be near GBP9 million, the top of its previously guided range.

CEO Sigurdsson said that while Victrex is still targetting underlying pretax profit in the second half of its financial year to be ahead of the GBP23.2 million recorded in the first half, a continuation of recent sales trends will mean a second-half result "broadly similar" to the first half.

Victrex will releases its financial 2025 results on December 2.

By Tom Waite, Alliance News editor

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